Carlyle Beijing RMB Fund Completes First Closing and Ready to Invest; Joint Venture with Beijing State-owned Capital Operation and Management Center to Tap Growth Opportunities in China

Beijing – Global alternative asset manager The Carlyle Group today announced the first closing of its RMB Fund, which is now ready to invest. The RMB Fund, which has a target size of RMB 5 billion (approximately US$740 million), will make investments in large growth companies in Beijing and across China. Carlyle has received more than RMB2.4 billion (approximately US$350 million) in commitments from a variety of sources, including: Beijing State-owned Capital Operation and Management Center (BSCOMC), Beijing Equity Investment Development Fund, as well as other large SOEs, private companies and individuals.

Carlyle also announced it has set up an investment management joint venture – Carlyle (Beijing) Investment Management Co., Ltd – with BSCOMC, the largest SOE in Beijing. Carlyle holds an 80% stake in the joint venture, which will serve as an advisor to the RMB Fund. Through the joint venture, Carlyle and BSCOMC will work together to identify opportunities and share each other’s best practices and resources to tap the growth opportunities in China.

David M. Rubenstein, Co-Founder and Managing Director of The Carlyle Group, said, “With strong support from the Beijing Municipal Government, Carlyle Beijing RMB Fund has had a successful first closing with significant capital committed by a number of high-quality institutional and individual investors who we are proud to call our partners. Carlyle is committed to long-term, responsible and value-creating investment in China. Through this RMB fund, we will expand our investment capabilities and efforts in Beijing and across China to serve the growing number of Chinese investors.”

Mr. JI Lin, Executive Vice Mayor of Beijing Municipal Government, said, “As the country’s center for financial policy making, financial management, financial information and financial services, Beijing has developed itself into a sophisticated hub with a substantial presence of financial institutions. It is also an opportune time for the significant development of the private equity industry. By working with global firms such as Carlyle, we will leverage private equity investments to grow local enterprises and structurally transform the local industries. We also view this as an important step to solidify the foundation for rapid and healthy development of the private equity industry and the broader financial industry in Beijing.”

Xiang-Dong (X.D.) Yang, Carlyle’s Managing Director and Co-head of Carlyle Asia Partners, said, “As the pioneering alternative asset investor with more than a decade of experience in China, we are pleased to lead the way in establishing this RMB Fund and partner with Chinese enterprises such as BSCOMC. We believe the RMB Fund will fully leverage its first mover advantage through partnerships with top Chinese organizations and investors to capture growth opportunities in China.”

The RMB Fund will invest alongside Carlyle Asia Partners, which manages more than US$5 billion in three existing USD-denominated funds and pursues independent investments in large growth companies in Asia. The RMB fund will be entitled to preferential policies offered by the Beijing Municipal Government, in accordance with its development policies for the city’s finance and other industries.

To date, Carlyle has invested more than US$3 billion in China through over 50 deals.

About BSCOMC

Beijing State-owned Capital Operation and Management Center (BSCOMC) is dedicated to the optimization and growth of its investment portfolio through asset securitization of state-owned enterprises. Established on January 5, 2009 with an initial registered capital of RMB30 billion, BSCOMC’s total assets reached RMB760 billion by the end of 2009, of which RMB270 billion were net assets, making it one of the country’s largest asset managers. BSCOMC currently invests in over 20 large municipal enterprises spanning across sectors including steel, automotive, equipment manufacturing, electronics, pharmaceutical, food, construction materials, real estate, infrastructure and financial services. The key responsibility of BSCOMC is to make investments according to government’s strategic plans, raise funds from capital markets, promote SOE reform, orderly consolidate investments and exits of state-owned assets, promote investments in pioneering and technologically-innovative industries, manage equity holdings in companies are listed or partially listed, restructure debts for enterprises and solve historical corporate issues.

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IMPORTANT NOTE - This statement is issued by Carlyle (Beijing) Investment Management Co., Ltd and does not constitute

(i) an offer to sell or the solicitation of an offer to buy an interest in Carlyle Beijing RMB Partners L.P. (“Partnership”) to any person in any jurisdiction or (ii) a public offer of the Interests in the People’s Republic of China (the “PRC”), as defined by the PRC Securities Law, and no action has been or will be taken to permit a public offering in any jurisdiction where action would be required for that purpose. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted. No marketing activities, advertisements or public inducements have been or will be carried out by the Partnership to the general public within the PRC. The information contained herein is not intended for publication or distribution to persons outside of PRC.

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