Carlyle/Riverstone Announces Investment in Titan Specialties, Ltd.

Pampa, TX – Titan Specialties, Ltd. ("Titan"), Riverstone Holdings LLC ("Riverstone") and The Carlyle Group announced today an agreement by Carlyle/Riverstone Global Energy and Power Fund III, L.P. ("C/R") to purchase a majority of the limited and general partnership interests in Titan held by the company’s existing owners, co-founders Bill Berry and Clarence Marak, and Chief Financial Officer Jerry Wilson. Bill Berry and Jerry Wilson will remain Chief Executive Officer and Chief Financial Officer, respectively, and will continue to own a significant stake in Titan. In addition to its initial investment, C/R also intends to invest additional equity capital post-closing to support specific expansion and growth plans in the near term, as well as other strategic initiatives going forward.

Titan, which was founded more than 40 years ago in Pampa, Texas, designs, manufactures and distributes perforating gun systems, shaped charges, well-logging instrumentation and other ancillary drilling and completion products for the oilfield services industry. The company consists of three divisions and has more than 295 employees in two manufacturing facilities and seven company-owned distribution centers, which are located in major producing regions of the U.S. Titan is one of the leading providers of perforating-related products in the U.S. and is an emerging player in the design and manufacture of down-hole instruments used in well completion.

According to Bill Berry, "We are excited to establish this partnership with Riverstone. Riverstone clearly understands the company’s rich history, its focus on providing quality products and service for its customers’ critical completion applications, and our vision for the company’s future. We look forward to the next phase of Titan’s development with them as our partner." Jerry Wilson added, "Riverstone is an ideal partner for Titan given its industry knowledge and significant capital resources. The growth prospects for Titan are excellent and this investment by Riverstone will help us and our team accelerate the company's future growth." John Lancaster, Riverstone Managing Director, said, "With a 40-year history of leadership in its core business, Titan is clearly a unique company with an incredibly strong franchise that is well positioned for growth. Riverstone is extremely pleased to have the opportunity to join forces with Bill, Jerry and the entire Titan management team, and we look forward to continued success for the company."

The terms of C/R’s investment were not disclosed and the closing of the transaction is subject to customary conditions, including antitrust clearance under the Hart-Scott-Rodino Act. Merrill Lynch & Co. is acting as financial advisor to Titan. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to Titan. Latham & Watkins LLP is acting as legal advisor to Riverstone Holdings LLC. Debt financing for the transaction is being arranged by Credit Suisse.

About Titan Specialties, Ltd.
Titan was founded in 1966 with the goal of becoming the premier perforating gun and hardware manufacturer in the Texas and Oklahoma region. The company is presently involved in the design, manufacture and distribution of perforating gun systems, shaped charges used in the perforating process, as well as instruments used for electronic well logging. The company’s products are used throughout North America and globally by the oilfield services industry. Titan has over 295 employees and consists of three operating divisions located in two manufacturing facilities in Pampa, Texas and Milford, Texas. Additionally, the company has a network of 21 owned and independent distribution centers throughout the U.S. and Canada. For more information on Titan Specialties, Ltd., see www.titanspecialties.com.