The Carlyle Group Buys Hispanic Teleservices Corporation from J.P. Morgan Partners, LLC and Citigroup Venture Capital International; Bilingual Call Center Specialists in Mexico Serve Growing U.S. Hispanic Market

Mexico City – Global private equity firm The Carlyle Group today announced that it purchased a majority stake in Hispanic Teleservices Corporation (HTC), a provider of customized bilingual call center services, from J.P. Morgan Partners, LLC and Citigroup Venture Capital International. Financial terms were not disclosed.

This investment reflects the criteria that led Carlyle to establish a Mexican team:
1. Take advantage of the integration of the U.S. and Mexican economies through NAFTA.
2. Consider the potential of Mexican demographics, especially a well-educated and well-trained young labor force.
3. Invest in efficient Mexican companies that serve the dynamic Hispanic market in the U.S.

HTC, which was founded in 1999, is a pioneer in tailoring services and sales to Spanish-speaking customers in the U.S. In addition to improving the service quality for its clients, HTC has a track record of helping them expand their share in this increasingly desirable market. The Houston, TX-based company operates from its state-of-the-art facilities in Monterrey and Guadalajara, Mexico, the country’s second and third largest cities, which boast more than 100,000 university students each—from which HTC draws its pool of 1,350 employees.

"We are excited about this investment," said Joaquin Avila, Co-head and Managing Director of Carlyle’s Mexico team. "As the U.S. Hispanic market continues to swell and flex its economic muscle, U.S. companies will pay increasing attention to their distinct customer service needs. HTC is perfectly positioned to capitalize on that trend."

Luis Téllez, Co-head and Managing Director of Carlyle’s Mexico team, said, "We look forward to working with HTC founders Alberto Fernandez and Kit Cooper in this next stage of HTC’s growth and profitability. Their top-notch cross-border management team and experienced operations team in Mexico are firmly oriented to the U.S. marketplace. This combination serves up a potent work ethic and an outstanding performance record. This is a recipe for continued success."

The buyout is also good news for HTC, according to Chief Executive Officer Alberto Fernandez. "We will benefit from Carlyle’s financial support as well as its strong network of business contacts throughout the U.S.," said Fernandez. "What we offer is changing the face of service to U.S. Hispanics. With help from Carlyle, more potential clients will come and see for themselves. Once they visit us and compare HTC to the rest of the multinational competitors, it’s an easy sale."

"HTC’s success is due in part to the awakening of U.S. businesses to the potential that the U.S. Hispanic Market offers," said Fernandez. "However, it’s mainly due to HTC’s strengths, which are unique in the industry. These extend from the hiring process to training and location, and from operations to a special department that gives feedback to clients on how to improve their products or services to their Spanish-speaking clients. And our most important advantage and biggest differentiator," said Fernandez, "is the talent of our fully bilingual, bicultural people."

HTC Services:
• Customer support services, including technical support, account inquiries, voice and back office claims.
• Acquisition services including registrations and inbound sales.
• Retention services focusing on retaining current customers.
• Professional services comprising frontline intelligence reporting as well as stand-alone services including bilingual mystery shopping, bilingual call quality management, Spanish call-flow customization and translation services.

U.S. Hispanic Market Facts:
• The U.S. Hispanic population is expected to grow from 40 million today to 103 million in 2050 (Source: U.S. Census Bureau).
• Hispanics accounted for about one-half of the national population growth of 2.9 million between 2003 and 2004. (Source: U.S. Census Bureau).
• Purchasing power expected to grow from $650 billion today to more than $1 trillion by 2008 (Source: U.S. Census Bureau).
• Disposable income in the Hispanic market doubled between 1990 and 2000 and is expected to double again between 2000 and 2010 (Source: U.S. Census Bureau).
• By 2025, the number of Spanish-dominant and bilingual Latinos will increase by 45 percent over the next two decades—adding 12.4 million Spanish-speakers to today’s population. (Source: Roslow Research).

This is The Carlyle Group’s third investment in companies with operations based in Mexico. In May 2004, Carlyle acquired a controlling interest in Cinemex, Mexico´s second largest movie theater chain. In September 2005, Carlyle acquired Universidad Latinoamericana, S.C., a for -profit university with campuses in Mexico City and in Cuernavaca, Morelos.

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Hispanic Teleservices Corporation (HTC) is a specialized provider of outsourced contact center services for companies serving the US Hispanic market. HTC helps clients grow their Hispanic market share by offering a solution that integrates scalable inbound bilingual contact center services with specialized professional services. Visit www.htc.to/ for additional information.

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