Aetos Capital Closes $2.2 Billion Real Estate Fund; Aetos Capital Asia II Will Seek to Capitalize on the Success of Its Predecessor Fund by Focusing on Opportunities in the Japanese Property Market.

NEW YORK -- Aetos Capital LLC ("Aetos"), an independent investment management firm, announced today that it has closed Aetos Capital Asia II ("ACA II"), a $2.2 billion fund formed to acquire real estate and related assets primarily in Japan.

ACA II will seek to build on the successful track record of its $740 million predecessor fund, Aetos Capital Asia ("ACA"), which closed in November 2003 and recently completed its investment program. ACA purchased $3.5 billion of Japanese real estate assets, portfolios and companies. These acquisitions were made through 23 separate investments in over 500 properties and included large scale corporate transactions such as the purchase of Matsushita Investment and Development Corporation ("MID"). MID has a 52-year history as the real estate affiliate of the Matsushita Electric Industrial Company, the maker of Panasonic brand electronics.

The fund plans to take advantage of the excellent real estate investment opportunity which currently exists in Japan. Scott Kelley, who co-founded and heads the Aetos real estate business, said "Since we began our Japanese real estate investment program in 2001 we have enjoyed outstanding success. Today we have a substantial infrastructure in Japan and a reputation in the market for completing large, complicated real estate transactions. We are enthusiastic about the opportunity in Japan and confident that our fund size and market position will result in continued success." With leverage ACA II will have the capacity to purchase over $10 billion of real estate.

Aetos Japan, which conducts Aetos' Japanese real estate business, has over 100 employees located in Tokyo and Osaka. This team will be responsible for sourcing transactions, managing the fund's real estate portfolio and executing dispositions pursuant to an agreement with ACA II. Aetos Japan provided similar services to ACA.

ACA II also has the ability to invest in markets outside of Japan. Mr. Kelley added, "We are evaluating other markets and investment opportunities and will pursue those situations that meet our risk-adjusted return requirements".

Investors in ACA II include prominent public pension funds, corporate pension funds, endowments, foundations as well as high net worth clients. Mr. Kelley said, "We are proud to be associated with some of the largest and most sophisticated investors globally and are particularly pleased that virtually all of the investors from ACA chose to invest in ACA II. We look forward to continuing our relationship with these investors for many years to come."

About Aetos Capital, LLC

Aetos Capital, LLC is an independent investment management firm offering alternative asset class investment opportunities in real estate, absolute return as well as private equity through AEA Investors Inc. Founded in 1999, the firm and its affiliates have $8 billion of assets under management, 200 employees and offices in New York, Tokyo, Osaka, London and Menlo Park.