Carlyle Successfully Acquires Kito Corp., Japan's Leading Hoist and Crane Manufacturer.

Business Editors

TOKYO--(BUSINESS WIRE)--Aug. 28, 2003

Global private equity firm The Carlyle Group today announced that it has succeeded in acquiring 90.94% of Kito Corp., the leading manufacturer of hoists and cranes in Japan, which is listed in Japan on the JASDAQ stock exchange. Having acquired majority ownership of Kito, Carlyle intends to de-list the company and take it private.

The tender offer was initiated on July 18, 2003 and closed yesterday. Kito's Chairman, President, and Board of Directors had unanimously voted to support this transaction. Kito will become a fully owned subsidiary of a Carlyle holding company after the share swap scheduled for early November. The transaction is valued at approximately JPY 13.4 billion or US$111.8 million.

Shinjiro Kito, son of the company's founder and the President of Kito Corp., said, "This is an excellent transaction for Kito, its employees, and shareholders. Our strategy is to strengthen our business in North America and China while streamlining our domestic operations. Carlyle is an outstanding partner given their global network, financial resources, and industry insight. Carlyle's support will help us become the dominant player in the global hoist and crane market."

Tamotsu Adachi, Managing Director of The Carlyle Group in Tokyo, said, "We are very proud to partner with such a strong management team and dedicated employees at Kito. Kito has a bright future and we are pleased to be a part of it. Kito's leadership position in the global hoist market and its strong cash flow are quite impressive in this difficult market."

Financing for the transaction will be provided by a group of Japanese banks led by Sumitomo Mitsui Banking Corporation. Carlyle and Kito management will provide equity capital.

About Kito Corp.

Founded in 1932, Kito is the leading Japanese manufacturer of hoists and crane products used for various industrial applications. It also designs and produces automated warehouses and sorters including facility-wide material handling systems. The company has subsidiaries and joint ventures in the U.S., Canada, China, Thailand, and the Philippines. In the U.S. market, Kito distributes its hoists and crane products through its 100%-owned subsidiary Harrington Hoists. Kito had approximately JPY 20.7 billion in consolidated revenues last year (approx. US$173 million).

About The Carlyle Group

The Carlyle Group is a global private equity firm with more than $16 billion under management. Carlyle generates extraordinary returns for its investors by employing a conservative, proven, and disciplined approach. Carlyle invests in buyouts, venture, real estate, high yield, and turnarounds in North America, Europe, and Asia, focusing on aerospace & defense, automotive, consumer & industrial, energy & power, healthcare, technology & business services, telecommunications & media, and transportation. Since 1987, the firm has invested $8.6 billion of equity in 286 transactions. The Carlyle Group employs more than 500 people in 12 countries. Visit www.carlyle.com for additional information.