Baring Private Equity Partners Reports Record Year for Exits.

Business Editors

LONDON--(BUSINESS WIRE)--April 28, 2003

Baring Private Equity Partners (Baring) today announced that despite the global downturn in private equity investments in 2002, the Group has reported its best year on record for exits. Last year, Baring successfully executed 17 divestments (in 15 companies), at attractive multiples, resulting in total returns of EUR 181 million.

A global business with offices in 17 countries, Baring achieved its highest percentage of exits in Western Europe and Asia (31% by cost), against the background of very low M&A activity and prolonged bear markets in those regions.

Baring has regional funds in every major international market outside of the USA, each of which had at least one exit last year. All of the exits were trade sales to strategic buyers and include the divestments of; a division of Topway (a Romanian margarine and condiments producer), Isolux (a Spanish engineering contractor) and Jyothy (an Indian consumer product company).

In addition, Baring's Latin America team, Baring Latin America Partners, also completed three successful exits from companies held by the South America Private Equity Growth Fund - which Baring has advised since December 2001. The companies were an Argentine pharmaceuticals distributor, a Brazilian producer of PET packaging products and a Brazilian operator of call centres.

Commenting on the announcement, Chris Brotchie, Chief Executive Officer of Baring said, "Despite turbulent economic conditions and political uncertainty, we continue to find buyers willing to pay attractive prices for strategically interesting companies. Our exit-focused investment strategy is paying off even in difficult times and confirms our belief that good in-going value is becoming increasingly available both in developed and emerging markets. Having experienced, local teams and deep rooted presence in all our regions means we are able to spot attractive deals which we have managed to sell at an average multiple of nearly 2.3 times cost - to buyers prepared to recognise in full the specific and real value we have added to each investment."

Mr. Brotchie continued, "Overall, since 1994 we have invested EUR 1.4 billion in 229 companies across 36 countries. The combination of our exit track record and low loss ratio gives us confidence that we are on the right track."

Although industry-wide, 2002 marked a valuation low point following the burst of the technology bubble, 16% of Baring's exits, last year, were in the communications and computer related sectors. Nearly half of Baring's companies sold in 2002 were bought in 1999 - testament to the investment teams' abilities to source good, stable deals at cheap, ingoing valuations even during the boom years.

The average holding period of the 2002 divestments was 45 months, a longer period than the Baring average (32 months) because, despite good fundamentals, trade sales take longer to complete in this environment. The average exit multiple was 2.28 times cost, but returns as high as 8.5 times cost were achieved in the sale of a Russian pulp and paper mill business managed by Baring's Russian team, Baring Vostok Capital Partners.

While 2003 may not achieve the volume of exit activity as last year, Baring has already announced two successful exits from mainland China businesses in its Baring Asia Private Equity Funds in the first quarter of this year.

Notes to Editors

Founded in 1984, Baring Private Equity Partners 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 dedicated local investment teams in Western and Central Europe, Asia, India, Latin America and Russia. With a balanced team of 65 investment professionals operating out of 21 offices in 17 different countries worldwide, Baring Private Equity Partners 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 world-class businesses.

At 30 September 2002, Baring Private Equity Partners had in excess of $2 billion in funds under management.

Baring Private Equity Partners is a wholly owned subsidiary of ING Group, the 9th largest European financial institution(*) by market capitalisation, with total assets of $751 billion(**) and assets under management of $471 billion(**).

(*) 17 February 2003 (**) 31 December 2002