West Palm Beach, Florida, July 2007 – The ComVest Group, through its Non-Control Fund, ComVest Capital, LLC, has provided a $8.5 Million term loan and revolving lines of credit to Fonon Technology International (“Fonon” or “FTI”), manufacturer of laser system equipment. The proceeds from the transaction will be used to provide funds for the retirement of Fonon’s existing debt and for working capital and increased marketing initiatives. Due to the increasingly stringent requirements for improved part traceability and inventory control within both public and private sector manufacturing processes, there has been an increased demand for laser marking equipment. ComVest believes the transaction is structured in a manner which permits significant upside participation in a well-positioned and profitable manufacturer of a variety of laser systems.

About Fonon
Based near Orlando, Florida, Fonon Technology International manufactures laser equipment for a large variety of industries including the automotive, aerospace, medical, semiconductor, and flat panel display industries. Through its various subsidiaries, including Laser Photonics, Fonon Display and Semiconductor Systems (“FononDSS”), C3 Laser Corporation, and Laser Depot, FTI supplies a multitude of laser products to a wide range of industries for a variety of applications. Aerospace contractors, automotive, and marine ship-building manufacturers use FTI’s industrial-grade laser cutting and laser marking equipment for their production lines. Medical equipment manufacturers use FTI’s products to mark codes on sensitive medical instruments. Semiconductor, solar panel, and flat-panel display manufacturers utilize FTI’s glass scribing lasers, and breaking machines for latest generation mother glass and silicon wafer dicing. Petrochemical industries, security and defense contractors use FTI’s laser marking systems for UID parts marking and identification. Additionally, tooling, bearing, plastics, and OEM industries mark and engrave their products with FTI’s custom-built laser systems. FTI’s fiber laser systems can be fitted to any factory and any application. The company’s fiber lasers can be used on plastics, nickel, aluminum, titanium, and most steel for the automotive, defense, medical, aerospace, and electronics industries. Common marks include UID marks, Date Codes, Bar Codes, Time Stamps and all other permanent marks for traceability and code compliance purposes.

About ComVest
The ComVest Group is a leading Private Equity firm focused on investing in middle-market companies. Since 1988 ComVest has invested more than $2 billion of capital in over 200 public and private companies worldwide. Through our extensive financial resources and broad network of industry experts, we are able to offer our companies total financial sponsorship, critical strategic support, and business development assistance. Our focus is centered on building industry leading companies and creating long term value for equity holders. For more information on ComVest, visit www.comvest.com.