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

Leading Private Equity Firm to Improve Environmental Performance of

Portfolio Companies and Internal Operations

May 01, 2008, 01:00 ET from Kohlberg Kravis Roberts & Co.

    NEW YORK, May 1 /PRNewswire/ -- 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
     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
     "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.
     About Environmental Defense Fund
     A leading national nonprofit organization, Environmental Defense Fund
 represents more than 500,000 members. Since 1967, Environmental Defense
 Fund has linked science, economics, law and innovative private-sector
 partnerships to create breakthrough solutions to the most serious
 environmental problems. Environmental Defense Fund has a 20 year track
 record of success in partnering with business. To maintain its independence
 and credibility, EDF accepts no money from corporate partners; generous
 individuals and foundations fund its work. For more information, please
 visit www.edf.org.
     About Kohlberg Kravis Roberts & Co.
     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, Beijing, and Tokyo. For more information, please visit www.kkr.com.
Contact: Melanie Janin, Environmental Defense Fund, (202) 572-3240, mjanin@edf.org For KKR, David Lilly of Kekst and Company, (212) 521-4878, david-lilly@kekst.com Eric Berman of Kekst and Company, (212) 521-4894, eric-berman@kekst.com

SOURCE Kohlberg Kravis Roberts & Co.