The Carlyle Group Buys Garrett Aviation from General Electric Company; Garrett to Be Combined with Piedmont Hawthorne

Washington, DC - Global private equity firm The Carlyle Group today announced that it has signed a definitive agreement with General Electric Company to acquire Garrett Aviation Services, a leading provider of aftermarket services to the general aviation industry.

Garrett Aviation Services is a premier provider of a broad range of maintenance services for corporate aircraft, including a variety of engine and airframe maintenance, repair and overhaul services, avionics installations and interior refurbishments. Garrett has a long-standing history in the general aviation industry with more than fifty years of experience and has built a reputation for strong engineering and technical expertise. Garrett has nine facilities located across North America and a dedicated base of more than 1,000 employees.

Carlyle intends to combine Garrett with one of its existing portfolio companies, Piedmont Hawthorne. Piedmont is the second largest fixed base operator in North America with a network of 32 fixed base operations. Piedmont provides refueling, maintenance and aircraft charter and management services to a variety of corporate, fractional and individual aircraft operators. Piedmont also owns Associated Air Center, a leading aircraft interior completions and modifications center. The combination will create a leading general aviation aftermarket service provider offering a more comprehensive range of services to better serve the needs of its broad customer base.

The transaction is expected to close in the third quarter of 2004. Frank Klaus, the current President of Garrett will lead the joint company as Chief Executive Officer.

“We are excited about what the future holds for Garrett,” Klaus said. “With the support of our new shareholder, we will continue to provide the same level of quality service Garrett is known for and now can focus on expanding our presence in the market. We believe that as an independent entity and in combination with Piedmont we will be able to better serve the needs of the general aviation market and the evolving needs of our customers.”

Adam Palmer, Carlyle Managing Director, said, “Garrett’s strong heritage in the industry, reputation for quality, technical expertise and extensive customer relationships have created one of the preeminent maintenance, repair and overhaul service providers in the general aviation industry. We believe the combination with Piedmont creates a true full-service general aviation aftermarket company with a national presence to meet the expanding needs of its customers. The combination pairs some of the most recognized names in the general aviation industry and will be well positioned to capitalize on the future growth in business aviation. We look forward to working with the existing management to enhance the value of the company.”

Carlyle was advised in this transaction by Lehman Brothers and CitiGroup.

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