Alliance Capital Chairman Dave Williams Moves From Public to Private Equity; Starts White Williams Private Equity Partners With Initial Investments in Eastern Europe.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 5, 2001

Sees Private Equity as More Rational Investment Process

White Williams Private Equity Partners announced today the launch of the $250 million European Accession Fund for private equity investment in Eastern and Central Europe.

Dave Williams, former Alliance Capital Chairman and Chief Executive Officer and current Chairman Emeritus, and Reba White Williams, a former Director at Alliance, head the firm.

The European Accession Fund adheres to the theory, based on past experience, that countries entering the European Union experience substantial economic growth and a greatly improved investment environment, as demonstrated by previous entrants, such as Spain and Greece. The European Accession Fund will invest in the next wave of countries joining the EU, including Poland, the Czech and Slovak Republics, Slovenia, Hungary and certain Baltic states. It will invest $5 million to $20 million in target companies and, in return, will acquire majority interest and participate in management.

"White Williams Private Equity Partners has developed a unique investment approach that takes into consideration the special circumstances in Central and Eastern Europe and its various legal and accounting structures," said Mr. Williams. "Our personnel have considerable experience investing in the region, and possess a deep knowledge of country-specific circumstances. For example, our staff of 25 investment professionals represent eight different nationalities and speak 16 different languages."

A core of professionals, formerly with Alliance Capital's East Fund Management subsidiary - which controlled over $100 million of assets in Austria, the Czech Republic, Romania, and Slovakia and which White Williams bought earlier this year - will manage the European Accession Fund, in partnership with a team of Polish private equity specialists previously employed by Bank Handlowy and TDA Capital. White Williams Private Equity Partners will operate from five offices located in Vienna, Warsaw, Prague, Bucharest, and Bratislava.

White Williams Private Equity Partners is the successor company to East Fund Management, established in 1994 by Bank Austria, and later jointly-owned with Alliance Capital Management.

Mr. Williams became CEO of Alliance Capital in 1977 when it had $6 billion in assets under management. During his tenure as Chairman, the firm expanded to over $450 billion in assets. White Williams plans to build a global private equity business over the next decade emphasizing the emerging markets.

Although Williams' successful career has been mostly in the public equity markets, he believes private equity is now a more rational investing process. Private equity investors, Williams believes, need to fully understand the business they are investing in rather than being influenced by quarterly earnings reports and vagaries of the market.

Mr. and Mrs. Williams are both graduates of the Harvard Business School. Mr. Williams is Chairman of the Foreign Policy Association in New York, where Mrs. Williams is a Fellow, and both are members of the Council on Foreign Relations.