The Carlyle Group Raises JPY 215.6 Billion Second Japan Buyout Fund; The Largest Ever Japan-Dedicated Buyout Fund

Tokyo, Japan - Global private-equity firm The Carlyle Group today announced it has raised JPY 215.6 billion (US$1.9 billion) for Carlyle Japan Partners II, the largest ever Japan-dedicated buyout fund. Approximately half of the fund commitments come from Japanese investors. Carlyle's first Japan buyout fund was established in 2001 at JPY 50 billion and has made seven investments in sectors including healthcare, industrial, automobile, business outsourcing, media and telecommunications.

Tamotsu Adachi, Carlyle's Managing Director and Head of the Japan Buyout Group said, "The environment surrounding Japanese corporations is drastically changing amid intense global competition, increasing pressures from investors, as well as ongoing legal and tax reforms. To outperform the competition, corporate executives are often required to make quick and bold decisions to restructure and transform businesses. Private equity firms can play an important role in the transformation of corporations, and to a broader extent, an industry's revitalization."

"Our focus on partnership with existing management teams and respect for local business practices and culture differentiate Carlyle globally. With a medium to long-term horizon, our fully-localized team targets medium to large businesses with capable management teams, strong market positions and performance. We leverage our deep local knowledge, solid track record, and global industry expertise in major sectors - from industrial, consumer, telecommunications and technology to health care - to help Japanese businesses expand domestic and international market opportunities. Our experience in investing globally allows us to see emerging trends and industry developments that are often major business opportunities for our portfolio companies," Adachi continued.

David M. Rubenstein, Carlyle's Co-founder and Managing Director, said, "The continued strong participation of Japanese investors enhances our positioning with quality management teams and businesses. Under the leadership of Tamotsu Adachi, Carlyle has built a dominant buyout presence in Japan with a localized strategy and philosophy that appreciates Japanese business practices and culture. We remain strongly committed to the promising Japanese buyout market and will devote our global resources to make Carlyle Japan Partners II a great success."

In June 2006, Carlyle raised a US$668 million pan-Asia growth capital fund, the largest growth capital platform in the region, to provide expansion capital to entrepreneurial companies with solid growth track record. Currently, Carlyle has seven funds with a total capital commitment of approximately US$4.5 billion dedicated to Asian companies and opportunities in buyout, real estate, venture and growth capital investments.

Carlyle Japan Buyout Portfolio:

· Asahi Security Co., Ltd. -- Cash collection and delivery, receipt and disbursement management, and automated security; invested in February 2002; sold all stakes to Toyota Industries Corporation in March 2005

· Kito Corp. -- Manufacturing and sale of hoists and cranes; invested in September 2003

· Colin Medical Technology (formerly Colin Corp.) -- Manufacturing and sale of medical equipment, such as blood pressure monitors and vital information monitors; invested in December 2003; sold all stakes to Omron Healthcare Co., Ltd. in June 2005

· WILLCOM, Inc. (formerly DDI Pocket, Inc.) -- Mobile communications services (data & voice) using personal handyphone system (PHS); invested in October 2004

· Rhythm Corporation -- Development, designing, manufacturing and sale of auto parts, such as steering and suspension components; invested in December 2004

· Gakusei Engokai Co., Ltd. -- Employment advertising, support for jobseekers and employers, and temporary staffing; invested in September 2005; completed merger with Intelligence Ltd. on July 1st, 2006

· Qualicaps Co., Ltd. (formerly Shionogi Qualicaps Co., Ltd.) -- Manufacturing and sale of hard capsules used for pharmaceuticals and health foods; invested in October 2005

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