FOR IMMEDIATE RELEASE: May 24, 2006

NES Rentals to be Acquired by Affiliates of Diamond Castle Holdings, LLC

CHICAGO, IL – NES Rentals Holdings, Inc., one of the nation’s largest aerial and general equipment rental and traffic safety services providers, announced today that it has concluded its strategic review process. The Company has signed a definitive agreement to be acquired by affiliates of Diamond Castle Holdings, LLC, a New York-based private equity firm, in a transaction valued at approximately $850 million including the assumption of certain liabilities.

Under the terms of the agreement, Diamond Castle will acquire all of the outstanding common stock of NES Rentals for $18.75 per share in cash. The purchase price per share represents a 42% premium to the Company’s closing price per share of $13.25 on January 12, 2006, the day on which the Company announced it would explore strategic alternatives.

NES Rentals Chairman and Chief Executive Officer Andrew Studdert said the implementation of a series of operating and revenue initiatives during the past two years has improved return on investment. “After undergoing significant change in recent years, NES Rentals has emerged as a well-positioned and profitable business,” he said. “The progress we have made allowed us to be in a position to consider options to unlock the value of our Company.”

In December 2005, the Company’s Board of Directors retained Bear, Stearns & Co. Inc. to assist in reviewing strategic alternatives. Studdert said this review included consideration of a variety of options, including the sale of the Company. “As part of this effort, the Board undertook a wide-ranging auction process ultimately resulting in the decision that the offer from Diamond Castle is in the best interests of the Company and its shareholders. When completed, this deal will allow NES Rentals to continue to meet and exceed the high standards we’ve established for customer service, quality equipment and financial growth.” Bear, Stearns & Co. Inc. and Houlihan Lokey Howard & Zukin each provided fairness opinions on the transaction to the Board of Directors.

Completion of the sale is expected within 60 days. It is contingent upon customary closing conditions, including regulatory approvals, delivery of the committed financing, and the approval of NES Rentals’ stockholders. NES Rentals has scheduled a special meeting of stockholders to vote on the proposed transaction that will be held on June 23, 2006. NES Rentals set a record date of May 26, 2006 for the special meeting.

Studdert has agreed to continue on in his capacity as Chief Executive Officer and Chairman of the Board following the completion of the transaction. Diamond Castle expects to retain NES Rentals’ company name, management team and product lines.

Bear, Stearns & Co. Inc. acted as exclusive financial advisor to NES Rentals Holdings, Inc. Kirkland & Ellis LLP acted as legal counsel to NES Rentals Holdings, Inc. Banc of America Securities LLC acted as exclusive financial advisor to Diamond Castle. Gibson, Dunn & Crutcher LLP acted as legal counsel to Diamond Castle. In addition, Deutsche Bank Securities, Inc. is leading the syndicate to deliver the committed financing for the acquisition.

About NES Rentals Holdings, Inc.

NES Rentals Holdings, Inc. is one of the largest companies in the $29 billion equipment rental industry. The company focuses on renting specialty and general equipment to industrial and construction end-users. It rents more than 750 types of machinery and equipment, and distributes new equipment for nationally recognized original equipment manufacturers. NES Rentals also sells used equipment as well as complementary parts, supplies and merchandise, and provides repair and maintenance services to its customers. In addition to the rental business, NES Rentals is the second largest supplier of traffic and safety services to the construction industry. The company is a leading competitor in many of the geographic markets it reaches from its approximately 120 locations in 34 states. For more information on NES Rentals, visit www.nesrentals.com.

About Diamond Castle Holdings, LLC

Diamond Castle Holdings, LLC is a private equity investment firm founded in 2004 by Larry Schloss, the former Global Head of CSFB Private Equity and Chairman of DLJ Merchant Banking Partners, and four former managing directors of DLJ Merchant Banking. Diamond Castle has 22 employees located in New York and focuses on investments in the power, financial services, media and telecom, healthcare, and industrial sectors. For more information on Diamond Castle Holdings, visit www.diamondcastleholdings.com.

CONTACT: Michael Disser, Vice President, Marketing
NES Rentals Holdings, Inc.
Phone: 773.695.2715
mdisser@nesrentals.com

Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements that invoke known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements to be materially different from those projected in forward-looking statements made by, or on behalf of, us. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” “projects,” “intends,” “prospects,” “priorities,” or the negative of such terms or similar terminology.