The Carlyle Group Acquires Chemicals Distribution Company Neochimiki for an Enterprise Value of €749 Million; Acquisition is Carlyle’s first transaction in Greece

London - Global private equity firm The Carlyle Group today announced that it has acquired 73.54% of the shares of Neochimiki L.V. Lavrentiadis S.A. Industrial and Commercial Company (ATHEX ticker: NEOCHI) for €19 per share in several block trades over the Athens Stock Exchange and will subsequently launch a mandatory tender offer for the remaining outstanding shares and will take all other measures available under applicable Greek laws to acquire all the shares of Neochimiki at the same price. 20% of the shares were acquired from Lavrentis Lavrentiadis, former Chairman and CEO and son of the founder of Neochimiki, with the remaining shares having been acquired from several international institutional shareholders. The transaction implies an enterprise value of €749 million.

Neochimiki is an independent chemicals company headquartered in Palaio Faliro, Athens, Greece, focused both on the distribution of chemical raw materials sourced from a wide network of large multinational chemicals suppliers and the production and distribution of fertilizers and raw materials for the coatings industry. Through its strong infrastructure network, Neochimiki serves more than 8,000 customers in a large variety of sectors such as the home, personal care, food, coatings, base oils and rubbers, construction, agriculture and automotive industries.

Established in 1974, Neochimiki has grown to become one of the largest Greek companies active both in chemicals distribution and production and is currently rapidly expanding into surrounding geographies with a particular focus on the high growth Balkan markets. The company has ownership of and access to significant infrastructure and a wide network of logistic and storage facilities.

Dr. Kostas Moutsos, board member and recently appointed CEO, commented, “Neochimiki is pleased to welcome Carlyle as a shareholder in this rapidly expanding business. Carlyle offers a deep understanding of the chemicals sector both in Europe and globally, and their insights and support will help Neochimiki to realize its ambitious growth strategy, particularly as we aim to extend our distribution, storage and production network across the Balkans.”

Dr. Robert Easton, Managing Director, The Carlyle Group said, “Neochimiki’s steady development into a major player in Greece is a testament to the hard work and vision of its strong and committed management team. Carlyle is delighted to have the opportunity to help Neochimiki reach the next stage of its development by supporting its international expansion plans and providing access to Carlyle’s global network in order to deepen the company’s multinational customer base.”

“This is Carlyle’s first investment in a Greek company,” continued Mr. Easton, “and reflects our confidence in the country’s strong economic growth prospects as well as Greece’s position as a gateway to investment in Eastern Europe.”

The Carlyle Group has a significant track record of investment in the chemicals sector, including AZ Electronic Materials, a global supplier of electronic materials to the semiconductor and flat panel display industries, acquired in September 2004, and H.C. Starck, a German provider of specialty metals, advanced ceramics and electronic chemicals acquired with Advent International in January 2007.

The investment has been made through Carlyle Europe Partners III, Carlyle’s third European buyout fund, which closed in 2007 with €5.35 billion in commitments.

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Notes to Editors

Financing is being provided by a consortium of leading international and Greek financial institutions. ABN AMRO Corporate Finance Limited and Sal. Oppenheim jr. & Cie. KGaA are acting as financial advisers to The Carlyle Group, while Clifford Chance and Karatzas and Partners are providing legal advice.

About Neochimiki

Neochimiki Group is a producer and distributor of chemical products. Since its establishment in 1974, it has marked an impressive growth course, becoming a market leader in the distribution of chemical raw materials in Greece, with significant presence in the broader Southeast European region. Neochimiki produces a wide range of products including plastics, paints & lacquer, fertilizers & agrochemicals and it distributes bulk chemical raw materials serving a substantial network of more than 8,000 clients across South and Eastern Europe.

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