The Carlyle Group to Sell Stellex Aerostructures to GKN

Washington, DC - Global private equity firm The Carlyle Group today announced that it has signed a definitive agreement to sell Stellex Aerostructures to GKN. The cash transaction, terms of which have not been released, is expected to close in 2006 subject to regulatory approvals. Carlyle Strategic Partners, Carlyle's distressed investment fund, completed a tender offer for a majority of Stellex's common stock in October 2004.

Stellex Aerostructures manufactures highly engineered subsystems and components for the aerospace and defense industries. Stellex's three divisions provide the following goods and services: large complex machined parts and structural sub-assemblies for the aerospace industry; and precision aircraft hinges and other structural components for the aerospace and space industries. Stellex employs approximately 650 people in three facilities in three states.

Raymond A. Whiteman, Carlyle Strategic Partners Managing Director and Co-head of the distressed investing team, said, "Stellex has been an excellent investment for us. The company is now on solid footing with a strong growth path. Management did a superb job of creating value by winning significant new business awards for new aircraft programs, focusing its costs structure, increasing the profitability of the business and continuing to meet its customers demands for quality parts on schedule."

Mr. Raynard Benvenuti, Chief Executive Officer of Stellex, said, "Carlyle's distressed investing experience and aerospace and defense background played a key role in our revitalization. The business is positioned well for future growth, and we have put in place all of the metrics and processes necessary for continued success in the aerospace market. The Company is looking forward to working with GKN to take Stellex to the next level of market performance."

Stellex Aerostructures

Stellex Aerostructures is a leading provider of highly engineered subsystems and components for the aerospace and defense industries. Stellex Aerostructures operates three divisions: Stellex Monitor Aerospace, Inc., Stellex Precision Machining, Inc., and Stellex Bandy Machining, Inc. Monitor and Precision Machining are leaders in the manufacturing of large complex machined parts and structural sub-assemblies for the aerospace industry. Bandy Machining provides precision aircraft hinges and other structural components for the aerospace and space industries.

GKN plc

Technology based, highly engineered systems, structures and components from GKN can be found in the vehicles and aircraft from the world's leading aerospace, automotive and off highway manufacturers. GKN employs 40,000 in more than 30 countries and reported sales of £3.6 billion in 2005.