Kohlberg Kravis Roberts & Co. and Environmental Defense Fund Announce First-of-Its-Kind

FOR IMMEDIATE RELEASE

(New York, NY - May 1, 2008) Environmental Defense Fund (EDF) and Kohlberg Kravis Roberts & Co. L.P. (KKR) today announced a “Green Portfolio” partnership to measure and improve the environmental performance of companies within KKR’s U.S. portfolio. Building on their successful collaboration in the 2007 acquisition of TXU Corporation, the partnership is the first of its kind between a private equity firm and an environmental organization.

KKR has committed to work with EDF to develop a set of analytic tools by which companies can assess and track improvements on a series of environmental metrics. These tools will enable managers to cost-effectively improve efficiency, reduce waste and address environmental impacts, such as greenhouse gas emissions, the use of toxic substances, waste generation or water consumption.

KKR and EDF expect that these actions will offer companies financial benefits, as well as improved environmental performance.

To prove this concept, over the next three to six months, EDF and KKR will conduct pilot projects within the KKR portfolio to develop analytic tools that can then be applied across a broader range of KKR portfolio companies over the next year. Results will be made public at the end of both phases. Once developed, EDF and KKR will make the processes, tools and results of their joint effort publicly available, with the mutual goal of having these tools implemented by other companies around the world.

Concurrently, KKR has committed to improving the energy efficiency of its own office operations, including by participating in EDF’s Climate Corps Program. As part of this commitment, KKR will undergo an energy audit of its offices, analyze the financial and environmental benefits of available energy efficiency improvements and implement those that are most cost-effective.

“The private equity industry is known for its focus on improving business performance and for the rigorous process it uses to set goals and track improvement in portfolio companies,” said Gwen Ruta, Vice President of Corporate Partnerships for EDF. “This groundbreaking new partnership between KKR and EDF will use the transformational power of private equity to achieve environmental goals. In addition, KKR’s commitment to EDF’s Climate Corps program indicates their willingness to ‘walk the talk’ when it comes to their own environmental footprint.”

“Today’s announcement is a direct result of our work with EDF and other environmental leaders during the TXU acquisition last year. That historic transaction was a significant step forward in incorporating environmental considerations into investment decisions as it set a new standard for conservation and efficiency in the energy industry. Building on that success, we and EDF agreed to pursue an innovative, cost-effective approach to using the private equity model to bring about improvements in environmental performance for a variety of companies, including our own internal operations. We believe this initiative will ultimately help our portfolio companies build upon their own environmental efforts while providing a workable example that may encourage other companies to make similar progress,” said Marc Lipschultz, Member of KKR.