Media Center

September 17, 2007

KKR Leads US$450 Million Financing for Tianrui Cement

Hong Kong / Zhengzhou, September 17, 2007 — Tianrui Group Cement Co., Ltd. (“Tianrui Cement” or the “Company”) and Kohlberg Kravis Roberts & Co. L.P. (“KKR”) announced today that Titan Cement Limited, an entity controlled by affiliates of KKR, has successfully completed a series of investments, with a total consideration of US$115 million, through which it will acquire a minority stake in Tianrui Cement. In connection with KKR’s investment, Tianrui Cement has also received commitments from the International Finance Corporation and an international banking syndicate led by JPMorgan for an additional US$335 million of USD and RMB long-term financing. Proceeds from KKR’s equity investment and the bank financing will primarily be used to support the Company’s growth and capacity expansion. The loan facility is the first sponsor-related, RMB-denominated long-term syndicated loan arranged by international banks in China.

Dr. Xiao Jiaxiang, Chairman and CEO of Tianrui Cement, said “We are very pleased to have KKR, one of the world’s oldest and most experienced private equity firms, as a strategic investor in Tianrui Cement. Having announced and completed over US$400 billion of transactions globally and with a focus on working in partnership with management, KKR is an ideal partner, one that invests for future competitiveness and growth. KKR’s equity investment also brings with it long term, low cost financing from a leading international bank consortium to support our future growth and expansion. This strongly reinforces our confidence in Tianrui Cement’s long term growth potential and competitive advantage. More importantly, it enables us to benefit from KKR’s extensive global resources and management expertise, which will help us further improve our operations and build our Company into a world-class enterprise.”

David H. Liu, a KKR partner, said, “We are excited to have the opportunity to invest in Tianrui Cement. The Company’s strengths and competitive advantages in its target markets, augmented by its experienced and dedicated management team, are truly impressive. We are optimistic about the long-term growth prospects of China’s cement industry and the enormous opportunity Tianrui Cement has to further grow and expand its business. By leveraging the global resources and expertise of KKR and with the support of the local governments, we look forward to working with Tianrui Cement’s strong management team to fully capitalize on the long term growth potential and consolidation of the cement industry in China.”

About Tianrui Cement
Founded in 1993, Tianrui Cement has grown to become one of China’s leading cement producers. It is the largest player in Henan province, a leading player in Liaoning province and one of the twelve national level cement producers named in the 2006 National Development and Reform Committee policy paper that the central government expressly requires banks and local governments to support. Tianrui Cement’s production capacity is entirely based on the dry process New Suspension Pre-heater technology, which is more energy efficient, more environment-friendly and provides a cost advantage over its competitors.

About KKR
Established in 1976, KKR is a leading global alternative asset manager. The core of the Firm’s franchise is sponsoring and managing funds that make private equity investments in North America, Europe, and Asia. Throughout its history, KKR has brought a long-term investment approach to portfolio companies, focusing on working in partnership with management teams and investing for future competitiveness and growth. Additional funds that KKR sponsors include KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE), a permanent capital fund that invests in KKR-identified investments; and two credit strategy funds, KKR Financial (NYSE: KFN) and the KKR Strategic Capital Funds, which make investments in debt transactions. KKR has offices in New York, Menlo Park, San Francisco, London, Paris, Hong Kong, and Tokyo.

Contacts:
Richard Barton
Gavin Anderson & Company
Tel: +852 2523 7189 or +852 9308 1056
E-mail: rbarton@gavinanderson.com.hk

Jessie Hsieh
Gavin Anderson & Company
Tel: +852 2523 7189 or +852 9490 2615
E-mail: jhsieh@gavinanderson.com.hk