Providence Equity Partners, The Carlyle Group and GMT Communications Partners Complete Acquisition of Casema for EUR 665 Million

Business Wire, Jan 28, 2003

Business Editors

PARIS--(BUSINESS WIRE)--Jan. 28, 2003

Providence Equity Partners Inc. and The Carlyle Group today announced that they and GMT Communications Partners have completed the acquisition of Casema, the third largest cable television operator in the Netherlands, from France Telecom for EUR 665 million in cash.

Providence Equity and Carlyle each acquired 46% ownership of Casema, with GMT owning the remaining 8%. Providence Equity and Carlyle will appoint a majority of the Company's Supervisory Board.

"This acquisition underscores our commitment to the European media and communications sectors and, in particular, to acquiring and further developing strong European cable businesses," said John Hahn, a London-based managing director at Providence Equity Partners. "With 1.3 million subscribers and over 90% penetration of households, Casema has a superb franchise, an established revenue base and excellent growth prospects. We look forward to working with the Company's management and employees to further strengthen its market position as a leading provider of high-quality broadband cable services."

Benoit Colas, a director of The Carlyle Group in Paris, said: "We are very proud to be the owners of such a high quality cable company in a country where cable is becoming the leading technology platform for the delivery of multimedia content and services."

Terrence Tehranian, partner at GMT in London, said: "We are delighted to have completed GMT's fifth and largest cable TV investment in Europe in what is evidently a premium quality cable company. We are looking forward to working with our experienced syndicate members."

Financing for the transaction was provided by a group of banks including ABN Amro, BNP Paribas, Credit Lyonnais, ING, Rabobank, Royal Bank of Scotland, Societe Generale, and WestLB. Advisors to the investor group were NM Rothschild, Allen & Overy and Deloitte & Touche.

About Casema

With over 30 years of experience and around 1.3 million subscribers, Casema is one of the Netherlands' leading cable operators. The Casema network is located mainly in the central and southwestern parts of the Netherlands and serves such cities as The Hague, Utrecht and Breda. Casema has rapidly developed from cable television operator to full service provider, offering an extensive package of electronic services via the cable. Visit www.casema.nl for additional information.

About Providence Equity Partners Inc.

Providence Equity Partners Inc. is one of the world's leading private investment firms specializing in equity investments in media and communications companies. The principals of Providence Equity manage funds with over $5.0 billion in equity commitments, including Providence Equity Partners IV, a $2.8 billion private equity fund, and have invested in more than 60 companies operating in over 20 countries since inception in 1991. Providence Equity currently has offices in Providence, Rhode Island, and London, England.

Providence Equity's current and previous areas of investment include wireless and wireline telephony, cable television content and distribution, publishing, radio and television broadcasting, in-store advertising, and other media and communications sectors. Recent investments include eircom plc, the national incumbent fixed line telephone company of Ireland, and the pending acquisition of the remaining cable television assets of Deutsche Telekom AG.

Visit www.provequity.com for additional information.

About The Carlyle Group

The Carlyle Group is a global private equity firm with more than $13.9 billion under management. Carlyle generates extraordinary returns for its investors by employing a conservative, proven, and disciplined approach. Carlyle invests in buyouts, real estate, high yield, and venture in the United States, Europe, Japan, and Asia, focusing on aerospace, consumer, defense, industrial, energy, healthcare, technology, and telecommunications and media. Since 1987, the firm has invested $7.2 billion and achieved a realized internal rate of return of 36 percent. The Carlyle Group employs 510 people in 21 offices in 11 countries.

In Europe, Carlyle employs 100 people based in Barcelona, Frankfurt, Milan, Munich, London and Paris. To date, 35% of Carlyle's corporate investments have been made in the Telecoms, IT and Media sector. Visit www.carlyle.com for additional information.

About GMT Communications Partners

GMT Communications Partners is Europe's leading private equity specialist in the Communications sector. The partners of GMT have worked together since founding Europe's first Communications fund, Baring Communications Equity Limited, in 1992, and have been influential in developing and nurturing many successful companies. These include Internet Network Services (UK), Media Publications (France), Mobifon (Romania), EUSA (Spain), Quote (Netherlands), Orion Publishing (UK), PEPcom (Germany) and Nexus (UK). GMT closed its latest fund of EUR 365 million at the end of 2000, from which it is still actively investing. Visit www.gmtpartners.com for additional information.