The Carlyle Group Announces the Relisting of Chimney Co., Ltd.

Chimney Returns to Public Markets as Stronger, Larger Company

Tokyo -Global alternative asset manager The Carlyle Group (Japan co-representatives: Tamotsu Adachi/Kazuhiro Yamada; headquarters: Washington D.C.; hereinafter Carlyle) announced that its majority-owned company, Chimney Co., Ltd. (Tokyo Stock Exchange Second Section, stock code 3178, headquarters: Tokyo-to, Sumida-ku, president and representative director: Manabu Izumi, hereinafter Chimney) has relisted by making a public stock offering on the Tokyo Stock Exchange Second Section on December 14, 2012.

When Chimney lists on the Tokyo Stock Exchange, Carlyle will sell shareholdings in the company equivalent to around 53% of total shares issued, of which about 7% will be an over-allotment.

Chimney is a restaurant chain operator in Japan. It specializes in Japanese style pub-restaurants (Izakaya), of which "Hananomai" and "Sakanaya Dojo" are its principal brands. Chimney also operates contract dining services inside public offices. The group had 690 stores nationwide as of the end of November 2012.

Chimney was listed on the Tokyo Stock Exchange Second Section prior to becoming a private company. In November 2009, Chimney announced it would go private from the stock exchange through a management buyout (MBO) to manage the rapid changes in the business environment and to build a business structure that is able to achieve stable and sustainable improvement in corporate value. The Carlyle Group became the largest shareholder after the privatization.

Through close cooperation and coordination with Carlyle, Chimney implemented various measures to strengthen its management and put in place a speedy decision-making system with the aim of improving corporate value. Specifically, Chimney has concertedly worked to strengthen its management and organizational capabilities, develop human resources, revamp its store opening strategy, and develop new restaurant models and expand new businesses.

As a result, Chimney has largely achieved the initial objective of the MBO of strengthening its business management and decided to relist on the stock exchange to pursue the next phase of growth. After relisting, Carlyle's managing director Hiroyuki Otsuka plans to continue to serve  as an external director to support the long-term development of Chimney.

Manabu Izumi, President of Chimney, said, “I would like to express my gratitude to our shareholders, customers and everyone who have supported Chimney with goodwill and confidence since we went private in 2009. Carlyle has expended much effort on the company to build a new business structure for stable and sustainable growth. Combined with our internal effort to improve management and operations, we were able to relist three years after the MBO. This marks a new era for Chimney to strive to achieve further growth and meet the expectations of all our shareholders.”

Tamotsu Adachi, Managing Director and Co-head of Carlyle Japan L.L.C., said, "Since our investment in November 2009, Carlyle has worked with Chimney to realize a growth strategy and has been actively involved in the company's management and operation. From its inception, Chimney has been a company with outstanding brand power, product capabilities and corporate culture. The factor that enabled Chimney to relist was the very strong relationship of trust built between Carlyle and Chimney's management team and all its employees. It was this relationship of trust that enabled the speedy implementation of bold measures and achievement of the MBO's original objectives. I want to express my appreciation and respect to Chimney's management team and all its employees for the relisting and wish the company continued business success.”

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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $157 billion of assets under management across 101 funds and 64 fund of fund vehicles as of September 30, 2012. Carlyle's purpose is to invest wisely and create value. Carlyle invests across four segments - Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions - in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs 1,300 people in 32 offices across six continents.

www.carlyle.com;
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About Chimney
Chimney is a leading restaurant chain operator in Japan, specializing in Japanese style pub-restaurants (Izakaya). It manages both directly operated stores and franchise stores. The "Hananomai" and "Sakanaya Dojo" chains are Chimney's principal brands. The Chimney group is based in the Kanto region centered on metropolitan Tokyo and had 690 stores nationwide as of the end of November 2012.

In addition to the Izakaya business, Chimney operates contract dining services inside public offices in 97 locations and is also engaged in the primary industry of fisheries.

Contact:
Public relations agent: Ogilvy Public Relations Worldwide (Japan) K.K.
Contact persons: Dan O'Brien/Yuzo Tomonaga/Kozo Uchida
Tel：03 (5793) 2385、2376、2380
E-mail：CarlylePress.Tokyo@ogilvy.com

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