KKR ACQUIRES MTU FROM DAIMLERCHRYSLER AG

London, November 21, 2003 – Kohlberg Kravis Roberts & Co. L.P. (“KKR”) announced today that it has agreed to acquire MTU Aero Engines GmbH, Munich, from DaimlerChrysler AG, Stuttgart. MTU is one of the leading players worldwide in the development, production and repair of commercial and military engines for aircrafts. It is Germany's leading engine manufacturer. Internationally, it is strongly positioned in all significant regions and markets. The 2002 revenue was €2.2 billion, with 80 % being achieved in the civil aero engine business. The company closely collaborates with US engine manufacturer Pratt & Whitney and will continue this strategic partnership.

The completion of the transaction is subject to necessary regulatory approvals, which are expected by end of December, 2003. It is also subject to approval by DaimlerChrysler’s Supervisory Board.

Johannes Huth, Managing Director of KKR in London, said: “We are looking forward to working with MTU to take advantage of the many opportunities for this experienced and innovative company.”

Contacts:

Penrose Financial - +44 (020) 7786 4888
Gay Collins - +44 (020) 7786 4882
James Montgomerie - +44 (020) 7786 4863

Kekst & Co (US)
Ruth Pachman - +1 (212) 521 4891
David Lilly - +1 (212) 521 4878

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