The Carlyle Group Raises $436 Million for First Fund Dedicated to Mezzanine Investments; Carlyle Mezzanine Partners Has Invested in Eight Companies

Washington, DC – Global private equity firm The Carlyle Group today announced that it has raised $436 million for its first fund dedicated to mezzanine investments. Carlyle Mezzanine Partners (CMP) is co-headed by Managing Directors Leo A. Helmers, Rufus H. Rivers and James C. Shevlet, Jr.; its seven investment professionals are based in Los Angeles and New York.

The Carlyle Mezzanine team was established in 2004 and has made eight investments. The Mezzanine team leverages Carlyle’s industry-based private equity experience and debt markets capability to make investments in profitable companies that have good cash flow and leading market positions, as well as highly motivated management teams.

CMP generates significant current income and long-term capital appreciation through investing in debt and equity securities of third-party leveraged buyouts, recapitalizations and growth financings. CMP primarily invests in senior subordinated notes with warrants, preferred stock, and minority common equity securities. Investing in debt securities allows CMP to provide current income on a quarterly basis.

Mr. Rivers said, "We are quite pleased to have exceeded our fundraising target and appreciate the confidence of our investors. With credit markets becoming increasingly unpredictable in 2006, we’re seeing more mezzanine investment opportunities and are well positioned to take advantage of this trend."

Carlyle Mezzanine Partners Portfolio

1. Sanitors, Inc.: provider of janitorial and landscape services to the commercial sector
2. Combined Systems, Inc.: manufacturer of branded less-than-lethal munitions and anti-riot products
3. United Road Towing, Inc.: automobile towing and auction company
4. LPL Holdings, Inc.: provider of investment advisory, marketing, distribution and technology services to the largest independent financial advisor network in the country
5. Sharis Management Corporation: operator of family-style restaurants
6. Targus Group International, Inc.: designs, markets and distributes notebook computer carrying cases and accessories
7. American Achievement Corporation: manufacturer and supplier of year books, class rings and graduation products
8. Comark Building Systems: manufacturer of modular buildings serving the military, government and education markets

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