Baring Private Equity Partners Asia Announces Sale Of Chinese Investment.

Business Editors

HONG KONG--(BUSINESS WIRE)--Feb. 11, 2004

Baring Private Equity Partners Asia ("Baring Asia") today announced that it has exited from Shanghai-based fast food purveyor Shanghai YongHe King ("Yong He"). The deal provides a healthy return of 1.8 times invested capital for the Baring Asia Private Equity Fund.

This exit represents Baring Asia's seventh exit from a Chinese investment and firmly establishes Baring Asia as a leading private equity player in Greater China. Other notable China exits for Baring Asia have been the NASDAQ listing of leading Chinese Internet company Netease, which has achieved a market capitalisation of over US$1 billion and an IRR of over 70% for the Fund, and last year's trade sale of Chinese Short Messaging services company Newpalm at an IRR of 45% to the Fund.

Philippines-based number one fast food chain, Jollibee Foods, is paying $22.5 million for an 85% stake of Yong He, a fast food favourite in China which has 77 branches. This 85% stake includes the purchase of Baring Asia's entire controlling interest in the company. Baring Asia originally invested in the company in 1999. Total proceeds, including an earnout payment, for Baring Asia are estimated to be $20 million on invested capital of $11 million.

Mr. Jean Eric Salata, Managing Partner of Baring Private Equity Partners Asia, said, "We are delighted with this sale. Yong He will be in good hands under Jollibee's management and we expect they will continue to grow and become a stronger competitor. It also confirms our view that, even during a vintage which has seen private equity returns stagnate globally, in China we can achieve attractive cash returns for our investors."

About Baring Private Equity Partners Asia

The Baring Asia Private Equity Fund II and the Baring Asia Private Equity Fund are funds managed by Baring Private Equity Partners Asia. Baring Private Equity Partners Asia has over US$560 million in capital committed to investment in Asia. Baring Private Equity Partners Asia specialises in providing expansion capital to rapidly growing middle market companies in Asia Pacific that require capital for expansion, recapitalisation or founders' liquidity. Baring Asia has offices in Hong Kong, Singapore, Shanghai, Delhi, Bombay and San Francisco and has 20 investment professionals on its investment team.

Notes to Editors

Established in 1984, Baring Private Equity Partners (BPEP) is a leading international private equity asset manager. The firm invests in every major market outside of the USA via six regional fund groups with local investment teams in Western and Central Europe, Asia, India, Latin America and Russia. Local ownership of investment decisions is complemented by the central oversight of a dedicated compliance function, providing an equilibrium of entrepreneurial flair with a disciplined investment process.

With over $2 billion in funds under management, BPEP has one of the most extensive on-the-ground networks of any international private equity provider. Its superior global reach provides the resources and investment expertise to help entrepreneurs around the world build worldclass businesses.