Newbridge Capital Signs Binding Agreement with Korean Government to Acquire Korea First Bank.

SEOUL, Korea--(BUSINESS WIRE)--September 17, 1999--

Newbridge Capital Limited ("Newbridge") and the Korean Government have today signed a binding agreement with respect to Korea First Bank (KFB) in the form of Terms of Investment. Newbridge will acquire a 51% economic interest in KFB and will operate the Bank. The Government of Korea will remain as a 49% shareholder. Final documentation is to be completed and transaction closed in the next several months.

In accordance with the agreement, the Korean Government will acquire all of KFB's non-performing loans as of the closing. Korea First Bank will be restructured and maintained as a clean bank.

Newbridge intends to rehabilitate KFB by implementing international banking practices and introducing new products and innovations into the Korean market. Newbridge intends to work closely with the new management of KFB to develop a business plan that will promote a rapid return to profitability and ensure preservation and growth of KFB's valuable franchise. Additionally, Newbridge plans to form a board of directors consisting of experienced independent directors from the U.S. and Asia.

Newbridge appreciates the cooperation it has received from the current management and all the employees of KFB. Newbridge is confident that the employees of KFB will continue to contribute to the growth of the franchise under new management and ownership.

Weijian Shan, a Managing Director of Newbridge, describes the binding agreement, which will serve as the basis for the definitive agreements, as mutually beneficial to the Korean Government and Newbridge: "This transaction marks a historic milestone in the banking history of Korea and underscores the commitment of Korean Government led by President Kim Daejung to financial and corporate reforms. We believe that this transaction will have a significantly positive effect on the Korean financial sector. Everybody won today with this binding agreement - Korean people, Government, Korea First Bank and Newbridge. We look forward to a world-class partnership that benefits all stakeholders."

Newbridge Capital is a leading emerging markets private equity firm backed by Texas Pacific Group and Richard C. Blum & Associates (RCBA), which jointly established Newbridge in 1994. Lead by three partners and 12 deal professionals, Newbridge Asia has offices in Singapore, Hong Kong, Shanghai and San Francisco.

RCBA is a merchant banking and equity investment management firm that currently manages funds with an aggregate value of approximately $3 billion. RCBA has employed a long-term investment strategy of making strategic block investments and working with the management of these businesses to implement specific strategies aimed at increasing shareholder value. Major investments include Northwest Airlines, URS Corporation, Playtex and AC Neilsen.

Texas Pacific Group, formed in 1993, is sponsor of TPG Partners II, L.P., of Fort Worth, a private investment partnership with capital of approximately $2.5 billion. TPG's principals include David Bonderman, James G. Coulter, and William S. Price. The partnership and its principals have completed significant investments in technology and telecommunications (Paradyne, Zilog, GlobeSpan Semiconductor, GT Com, Landis & Gyr Communications), food and beverage products (Beringer Wine Estates, Del Monte Foods), retail (J. Crew), healthcare services (Oxford Health Plans) and airlines (Continental, America West).

Newbridge is being advised on its acquisition of KFB by Lehman Brothers, Kim & Chang, and Cleary Gottlieb Steen & Hamilton. Ernst & Young, Samjong Houlihan Lokey and Bain & Company have also acted as advisors to Newbridge in connection with this transaction.