ELCO Holdings-Airwell Group/Fedders Corporation

March 14, 2008

      Compass Advisers, LLP ("Compass") is pleased to announce the acquisition of  Fedders' Residential HVAC business by Airwell Air Conditioning BV ("Airwell") a Paris-based subsidiary of ELCO Holdings, Ltd. ("ELCO"), an Israel-based investment holding company.  This transaction marks the initial entry into the North American market by Airwell, one of Europe's leading manufacturers and distributors of air conditioners and central air conditioning systems.  ELCO-Airwell was successful in acquiring the Fedders Residential HVAC business out of Fedders Corp.'s Chapter 11 bankruptcy proceedings.  This transaction highlights Compass' capabilities to provide transactional and advisory services around the globe to successfully acquire a unique set of assets from a distressed company.

      Compass identified the opportunity and approached ELCO, advising them of the potential opportunity to acquire selected assets from Fedders for Airwell.  ELCO-Airwell determined that this situation presented a unique opportunity to enter the North American HVAC market, the largest in the world, and to add the Fedders brand to their world wide distribution network.  In addition, ELCO-Airwell decided to pursue certain of Fedders Corp.'s R&D and manufacturing assets in China to supplement ELCO-Airwell's existing manufacturing capabilities there.

      Compass assisted ELCO-Airwell in performing due diligence, valuing assets and business entities, negotiating the price and transaction terms, providing strategic advice regarding bidding and bidding procedures in bankruptcy, coordinating activities required in the acquisition process through the target's bankruptcy proceedings, and developing integration and business plans.  In addition, Compass provided advice facilitating the successful acquisition of R&D and manufacturing assets located in China that were not part of the U.S. bankruptcy process, but were encumbered assets of a distressed company.

      Airwell will now enter the North American market with a long-established brand name, a domestic distribution network and management team, and improved R&D and manufacturing capabilities in China, all for an attractive price.  This transaction emphasizes Compass' ability to work with non-American based enterprises to develop and execute global M&A strategies and highlights Compass' expertise in acquiring companies in bankruptcy.

      Avi Israeli, Vice President and Head of ELCO's Business Development comments, "Fedders' air conditioning business is a great complement to our global network.  We are delighted with the advantages that the Fedders name and products bring to our entry into the North American HVAC markets.  Compass was instrumental in presenting us with this important opportunity and navigating the details of the transaction including those related to the often complicated U.S. bankruptcy process."