Mubadala Agrees to Increase Stake in Carlyle General Partnership.

Abu Dhabi and Washington, DC – Mubadala Development Company, the Abu Dhabi-based strategic development and investment company, and The Carlyle Group, a global alternative asset manager, today announced an agreement for Mubadala to make an additional investment in the Carlyle general partnership. In exchange for the $500 million investment, Mubadala will receive from Carlyle a combination of convertible subordinated notes and additional equity in the Carlyle general partnership. Among other things, the investment proceeds will be used to expand product lines and offerings to Carlyle’s investors. Additional financial details were not disclosed.

In September 2007, Carlyle sold a 7.5 percent stake in its general partnership to Mubadala.

Mubadala Chief Executive Officer Khaldoon Al Mubarak said, “This additional investment in Carlyle underscores the importance of the strategic partnership to Mubadala. Since the initial investment in 2007, our two firms have collaborated across a number of industry sectors. We are confident in Carlyle’s ongoing success as a global alternative asset manager and are pleased to support their strategic initiatives, including product and geographic expansion.”

Carlyle Co-Founder and Managing Director David M. Rubenstein said, “Our partnership with Mubadala continues to strengthen as we collaborate on investment opportunities and share sector and regional economic insights. We are proud to deepen our relationship with Mubadala.”

The partnership has also included growing cooperation on identifying investment opportunities in the Middle East and North Africa as well as increasing collaboration in industry verticals such as healthcare, aerospace and technology.

Goldman Sachs served as exclusive financial advisor to Mubadala on this transaction. Citi and J.P. Morgan Securities LLC served as financial advisors to The Carlyle Group.

About Mubadala Development Company

Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government of Abu Dhabi, the company’s strategy is built on the creation of partnerships and on long-term, capital-intensive investments that deliver strong financial returns and tangible social benefits for the Emirate of Abu Dhabi, and that contribute to the growth and diversification of its economy.

Mubadala brings together and manages a multi-billion dollar portfolio of local, regional and international investments and partners with leading global organizations to operate businesses across a wide range of industry sectors. These include aerospace, energy, healthcare, information communications and technology, infrastructure, real estate and hospitality, and services ventures. For more information about Mubadala please visit http://www.mubadala.ae

Mubadala Media Contacts:

Mitchell Prather
Mubadala Development Company
mprather@mubadala.ae
+971 2 413 2775

About The Carlyle Group

The Carlyle Group is a global alternative asset manager with $97.7 billion of assets under management committed to 76 funds as of September 30, 2010. Carlyle invests across three asset classes - private equity, real estate and credit alternatives - in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $64.7 billion of equity in 1015 transactions. The Carlyle Group employs more than 900 people in 19 countries. As of June 30, 2009, in the aggregate, Carlyle portfolio companies have more than $84 billion in revenue and employ more than 398,000 people around the world. Web: http://www.carlyle.com; Case Studies: http://www.carlylegroupcreatesvalue.com; Video: http://www.youtube.com/OneCarlyle

The Carlyle Group Media Contacts:

Emma Thorpe,br>The Carlyle Group
emma.thorpe@carlyle.com
+ 44 (0)20 7894 1630

Rosanna Konarzewski
The Carlyle Group
rosanna.konarzewski@carlyle.com
+ 44 (0)20 7894 1632