The Carlyle Group to Acquire Gakusei Engokai Group

Tokyo, Japan - Global private equity firm The Carlyle Group today announced that it has agreed to acquire 100 percent of the outstanding shares of Gakusei Engokai Co., Ltd. and its subsidiaries from the founding family through a management buyout (MBO). In this agreement, the current management will remain in place and all employees will be retained. The transaction is expected to close by October 2005. Financial terms were not disclosed.

Gakusei Engokai is a premier publisher of job placement magazines, which are distributed to more than 100,000 locations throughout Japan. These magazines are well known in Japan for its brands: "an", "DODA", "salida", and "arbeit times". The company also provides this information via the Internet and mobile phones, which is a rapidly growing interface for job seekers. The company also has a staffing agency, which complements its job placement business.

Tamotsu Adachi, Carlyle Managing Director and Head of the Japan Team, said, "Gakusei Engokai’s products have high visibility and brand value together with a strong sales force and extensive marketing network. By leveraging these assets, the company will increase its profitability and regain its position as the market leader. We will also consider mergers and acquisitions to expand its core business."

"By injecting our capital and enhancing corporate governance, the company will be able to pursue an IPO, which has been the goal of management and its employees for some time now. The management team and employees are excited about this opportunity and we are pleased to make such a fine investment in this unique company."

"Although this business model is not well known outside of Japan, it is an established model in Japan, where the company has been doing business for nearly 50 years. We believe that the move towards Internet and mobile based products will allow the company to become even more profitable in the future."

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