The Carlyle Group Announces the Merger of kbro with Taiwan Mobile via Share Swap Transaction; Merger Creates Taiwan’s Leading Cable TV Services Operator

Taipei – Global private equity firm The Carlyle Group announced today that it has agreed to a share swap transaction between kbro and Taiwan Mobile Co., Ltd. (“TWM”). kbro is one of Taiwan's largest cable TV operators and is majority-held by Carlyle Asia Partners (“CAP”).

Under the terms of the transaction, CAP will exchange its holdings in kbro for a 15.5% stake in TWM. Following the close of the transaction, CAP will become the second largest shareholder in TWM, one of Taiwan's leading telecommunications operators. The transaction will create the largest pay TV service provider in Taiwan, with over 1.5 million subscribers. The transaction is conditional upon receipt of regulatory approvals in Taiwan.

As a significant investor in kbro, and previously Taiwan Broadband Communications (“TBC”), Carlyle has helped drive the integration and digitalization of Taiwan's cable industry, in particular through the investment of considerable capital and via support for the introduction of new services, such as kbro's launch of HD digital cable television. Through its investment in TWM post this transaction, Carlyle expects to continue to support the convergence of mobile and cable services, which will provide additional premium service offerings for consumers.

The Carlyle Group is one of the largest private equity firms in Asia with the broadest local presence across the region. CAP is the largest international private equity investor in Taiwan, dating back to its investment in TBC in 1999 when there was no integrated cable operator in Taiwan. During its holding of TBC, the company had expanded its coverage across Taiwan and significantly enlarged its scale and revenue. Leveraging this successful experience and Carlyle's global industry expertise, CAP announced its investment in kbro in July 2006 and has since driven the digitalization of cable services. CAP is also an investor in Ta Chong Bank and Eastern Broadcasting Company.

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