Robert L. Johnson and The Carlyle Group to Form Private Equity Firm; Carlyle Takes Equity Stake to Form New Strategic Alliance

Washington, D.C. - Robert L. Johnson, the founder of Black Entertainment Television, today announced that he has signed a letter of intent with The Carlyle Group to develop co-investment opportunities, share private equity deal flow, and execute private equity deals. The RLJ Companies, Mr. Johnson’s holding company, through a new private equity firm, plans to identify and make expansion and buy-out investments with The Carlyle Group in the media, financial services and business services industries.

The RLJ Companies will focus on the execution of controlling investments in the high end of middle-market companies. All investments will be long-term in nature and will be managed by one of the largest teams of African American professionals in the private equity community. In addition to participating in co-investment opportunities, The Carlyle Group will make a seed equity investment in the firm.

Our strategic alliance with The Carlyle Group will provide both parties with access to a substantial variety of proprietary deal flow. Our team’s proven operational experience coupled with Carlyle’s leadership in the private equity community will make a significant difference in the success of the companies in which we will invest, said Robert L. Johnson, Chairman of the RLJ Companies.

We are excited to work together with Bob and The RLJ Companies on mutual opportunities, said David M. Rubenstein, Co-founder and Managing Director of The Carlyle Group. We believe that the private equity market is ripe for a minority-owned and operated organization that has the team and the sponsor to execute successful private equity strategies. Bob Johnson will leverage his tremendous success to achieve our mutual goals.

Through this strategic alliance, The RLJ Companies will provide an opportunity for entrepreneurs to benefit from Bob Johnson’s business success and experience as the founder of Black Entertainment Television. Mr. Johnson founded and managed Black Entertainment Television as its CEO for 25 years and was the majority owner of the company until 2001, when he sold it to Viacom Inc. in a $3 billion deal.

About Robert L. Johnson
Mr. Johnson sold BET to Viacom in 2001 in a $3 billion transaction. He currently serves on the boards of Hilton Hotels, Lowe’s Companies, Inc., IMG, and Strayer Education, Inc. Other boards include the NBA Board of Governors, Johns Hopkins University, Board of Governors for the Rock and Roll Hall of Fame, Jazz at Lincoln Center, and the American Film Institute. Johnson is a graduate of the University of Illinois and holds a master’s degree in International Affairs from the Woodrow Wilson School of Public and International Affairs at Princeton University.

About RLJ Companies
The RLJ Companies provides strategic investment and direction in and for a diverse portfolio of companies in the financial services, real estate, hospitality/restaurant, professional sports, film production, gaming and recording industries. An innovative business network, The RLJ Companies seeks to target undiscovered or underserved markets, then exercise solid management and achieve results.

The RLJ Companies’ core businesses include: RLJ Development, a privately held hotel real estate investment company, and the RLJ Urban Lodging Fund with $315 million under management from public and private pension fund investors, which together make up more than $800 million in assets under management; RLJ Hedge Fund of Funds, a joint venture with Deutsche Bank; Rollover Systems, a financial services company providing retirement plan rollover services; NBA Charlotte Bobcats, WNBA Charlotte Sting and Charlotte Arena Operations; Caribbean Gaming and Entertainment (C.A.G.E.), with entertainment and nightclub venues in the Caribbean; and Three Keys Music, a jazz recording company.