Carlyle Issues Summary of 2003 Investment Activity; $2.5 Billion Invested; $2.1 Billion Returned to Investors; $2 Billion Raised

Washington, DC – Global private equity firm The Carlyle Group today released a summary of its investment activity for calendar year 2003, including money invested, deals entered and exited, money returned to its investors, and money raised.

William E. Conway, co-founder and Managing Director of The Carlyle Group, said, “We put a lot of equity to work for our investors in 2003 and returned a record amount of money as well. Our investment activity in 2003 spanned the globe, four asset classes, and Carlyle’s eight sector specialties. Troubled balanced sheets, good valuations, readily available financing, little competition from strategic buyers, and a reserve of dry powder made this a superb time to deploy capital, recapitalize, refinance, and sell. Only time will tell, but 2003 is shaping up to be a superb year for private equity.”

• Dollars invested in buyouts, venture, real estate, high yield: $2.5 billion


• Dollars returned to Carlyle investors: $2.1 billion


• Dollars raised for investing: $2 billion

Carlyle conducted final closings on three funds:

• Carlyle Loan Opportunity Fund – $300 million 10/03


• Carlyle Japan Partners – ¥50 billion buyout fund 12/03


• Carlyle Europe Real Estate Partners – €430 million real estate fund 12/03

Summary of 2003 Investment Activity

Global Buyout Activity

North America Buyout

• US Investigations Services, Inc. – U.S. provider of security services; partial sale 1/03


• Casema NV* – Dutch cable TV provider; acquired 1/03


• Firth Rixson, plc* – U.K. engineering group; acquired and merged with Forged Metals, Inc. 2/03


• Horizon Lines, LLC – U.S. container shipping company; acquired 2/03


• Entertainment Publications, Inc. – U.S. marketer of coupon books; exit 3/03


• Key Safety Systems, Inc. (formerly Breed Technologies) – U.S. automobile safety parts supplier; acquired 4/03


• MedPointe, Inc. – U.S. specialty pharmaceutical products company; follow-on investments 5/03 & 10/03


• United Components, Inc. – U.S. aftermarket auto parts maker; acquired 6/03


• Baker & Taylor, Inc. – U.S. book distributor; exit 7/03


• United Defense Industries, Inc. – U.S. defense contractor;
  
  
  
  • secondary stock sale 8/03
  
  
  • secondary over allotment 8/03
  
  
  • block sale 11/03


• URS Corp (EG&G and Lear Siegler) – U.S. provider of management and technical services; secondary stock sale 9/03


• Dex Media West, Inc. – U.S. telephone directories business; acquired 9/03


• Avio SpA* – Italian aerospace company; acquired with Finmeccanica 9/03


• ConnectiCare Holdings, Inc. – U.S. health maintenance organization; recapitalization 10/03


• Communications & Power Industries, Inc. – U.S. communications equipment manufacturer; exit 11/03


• Dex Media, Inc. – recapitalization 11/03


• Align Technology, Inc. – U.S. orthodontics device company; block sale 11/03


• Empi, Inc. – U.S. medical device company; recapitalization 11/03


• Air Cargo, Inc. – U.S. ground transportation company; follow-on investment 11/03


• Duratek, Inc. – U.S. radioactive waste services; stock sale 12/03


• Casema NV* – recapitalization 12/03


• VTL – Canadian competitive local exchange carrier; exit 12/03


• Gemini Air Cargo, Inc. – U.S. outsourced air freighter service provider; follow-on investment 12/03

Europe Buyout

• Edscha AG – German auto parts manufacturer; acquired 1/03


• Casema NV* – Dutch cable TV provider; acquired 1/03


• QinetiQ Group plc – U.K. science and technology company; acquired 2/03


• Firth Rixson, plc* – U.K. engineering group; acquired and merged with Forged Metals, Inc. 2/03


• Andritz AG – Paper and pulp systems provider; exited 6/03


• Avio SpA* – Italian aerospace company; acquired with Finmeccanica 9/03


• Terreal – French tile and brick manufacturer; acquired 10/03


• Materis – French specialty building materials conglomerate; exited 11/03


• Casema NV* – recapitalization 12/03

Asia Buyout

• Taiwan Broadband Communications Co. Ltd. – Taiwanese cable provider; recapitalization 10/03

Japan Buyout

• Kito Corp. – Japanese crane and hoist manufacturer; acquired 9/03


• Colin Corp. – Japanese medical device manufacturer; acquired 12/03

Global Venture Activity

North America Venture

• Endius, Inc. – U.S. medical device company; invested 3/03


• Archetype Solutions, Inc. – U.S. software solutions developer; follow on investment 4/03


• Ingenio – U.S. web to phone expert advice provider; follow on investment 4/03


• NeoVista, Inc. – U.S. medical device company; invested 5/03


• WCI Cable, Inc. – U.S. submarine telecommunications cable operator; dividend 5/03


• SMaL Camera Technologies, Inc. – U.S. electronic imaging solutions developer; invested 7/03


• Sight Resource Corporation – U.S. eye care product and service provider; stock sale 7/03


• Matrics, Inc. – U.S. radio frequency identification device developer; follow on investment 7/03


• Varsity Group, Inc. – U.S. online text book provider; stock sale 8/03


• Secure Elements, Inc. – U.S. computer network security company; invested 8/03


• LVL7 Technologies, Inc. – U.S. software solutions provider; invested 9/03


• TrenStar, Inc. – U.S. container fleet tracking solutions provider; invested 9/03

Europe Venture

• Casema NV* – Dutch cable TV provider; acquired 1/03


• Egencia, S.A. – French online corporate travel agency; follow-on investment 4/03


• Solsoft S.A. – French network security software developer; follow-on investment 6/03


• Bfinance.com Ltd. – French tender offer platform provider; follow-on investment 10/03


• Fennel Technologies AG – German automotive parts supplier; invested 12/03


• Trema Group – Dutch financial software company; follow-on investment 12/03


• Orthogon Systems – U.K. fixed wireless access systems; follow-on investment 12/03


• Casema NV* – recapitalization 12/03

Asia Venture

• Worldzen Holdings Limited – Indian business process outsourcing; invested 2/03


• QuEST, LLC – Indian outsourced design and engineering services provider; invested 5/03


• Amperex Technology Limited – Chinese manufacturer of lithium-ion polymer batteries for mobile devices; invested 6/03


• LearningMate Solutions Pvt Ltd – Indian e-learning content provider; invested 10/03


• Fab Solutions Company Limited – Japanese semiconductor equipment manufacturer; follow-on investment 10/03


• eAccess Limited – Japanese broadband access provider; IPO 10/03


• Worldzen Holdings Limited – partial exit 11/03


• E-Power – Chinese integrated circuit design company; invested 12/03


• Ctrip.com International, Ltd. – Chinese online travel company; IPO and secondary stock sale 12/03

Global Energy & Power Activity

• CDM Resource Management, Ltd. – U.S. natural gas compression services company; acquired 5/03


• Magellan Midstream Partners, L.P. (formerly Williams Energy Partners) – U.S. energy transportation, storage, and distribution company; acquired with Madison Dearborn 6/03


• Legend Natural Gas, LP – U.S. natural gas exploration and production company; follow-on investment 10/03


• Frontier Drilling ASA – Norwegian drillship operator; follow-on investments 12/03


• InTANK, Inc. – U.S. storage tank inspection and cleaning company; follow-on investments 12/03


• Magellan Midstream Partners, L.P. – partial redemption of preferred interests 12/03

Global Real Estate Activity

North America Real Estate

• SOHO East – New York, NY residential development; sold 7/03


• 99 Summer Street – Boston, MA office building; sold 7/03


• US Bank Plaza – Denver, CO office building and retail complex; sold 8/03


• 155 Pfingsten Road – Chicago, IL office building; sold 8/03


• Strada234 – Boston, MA residential building; acquired 8/03


• Pacifica Portfolio – Los Angeles, CA light industrial facilities; sold 9/03


• Huntington Terrace, NY – senior housing facility; acquired 9/03


• Cypress Portfolio – Three retail centers (Largo, Fl, Woodbridge, VA, and Las Vegas, NV); acquired 3rd - 4th quarter/03


• American Golf – Ft. Worth, TX golf course portfolio; acquired 10/03


• Sunrise Portfolio – Thousand Oaks, CA and Chicago, IL senior housing facilities; acquired 11/03


• Century City – Los Angeles, CA two hotels; mezzanine loan 11/03


• The Floridian – Miami Beach, FL, luxury residential building; acquired 12/03


• 1414 22nd Street – Washington, DC office building; acquired 12/03


• 930 Wayne Avenue – Silver Spring, MD condominium complex; acquired 12/03


• Ballston Westin – Arlington, VA hotel; mezzanine loan 12/03

Europe Real Estate

• Two office buildings (Headquarters of the Continent Insurers and Imprimerie Nationale) – Paris; acquired 1/03


• Jupiter portfolio of 36 properties – Numerous locations throughout Italy; acquired 3/03


• 107 Cheapside – London office complex; acquired 8/03


• 11-story office building in Dusseldorf; acquired 11/03

Asia Real Estate

• Misa Building – Seoul, Korea office building; acquired 8/03

Global High Yield Activity

• Carlyle Loan Opportunity Fund – Invested$300 million in liquid, non-investment grade bank loans. The fund has an initial core portfolio of 75 percent senior secured par loans, which will be supplemented with opportunistic acquisitions of performing loans trading at a 10-25 percent discount to par; invested 9/03

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Notes:

*Casema NV – Three Carlyle funds participated in this investment: Carlyle Partners III, Carlyle Europe Partners, and Carlyle Europe Venture Partners.
*Firth-Rixson, plc – Two Carlyle funds participated in this investment: Carlyle Partners III and Carlyle Europe Partners.
*Avio SpA – Two Carlyle funds participated in this investment: Carlyle Partners III and Carlyle Europe Partners II.

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