Providence Equity Partners to Take Sole Ownership of Kabel Deutschland

Providence Equity Partners to Take Sole Ownership of Kabel Deutschland

UNTERFOEHRING, Germany, December 12/PRNewswire/ --

- Apax Partners and Goldman Sachs Capital Partners to Sell Their
Shareholdings

- Largest German Cable Operator Well-Positioned to Successfully Roll-Out
Triple Play Services

Today the owners of Europe's largest cable company Kabel Deutschland
announced a major change in the Company's shareholder structure. Providence
Equity Partners will acquire the entire shareholdings of Apax Partners and
Goldman Sachs Capital Partners and with about 95% ownership become the sole
shareholder of Kabel Deutschland alongside management.

Apax, Goldman Sachs Capital Partners, and Providence Equity Partners
jointly acquired Kabel Deutschland in March 2003 as a carve-out from Deutsche
Telekom AG. Under their ownership the Company transitioned from a traditional
analogue cable TV company into an innovative provider of cable services
including pay-TV, Broadband Internet and Telephony, investing significantly
into the network.

After close to three years of joint ownership, Apax and Goldman Sachs
Capital Partners are seeking liquidity for their shareholding while
Providence Equity has committed itself to further support the Company and
accompany the roll-out of its new services.

"Kabel Deutschland is Europe's largest cable operator and is extremely
well positioned to capitalise on the substantial growth in broadband internet
and digital television expected in the coming years" said John Hahn, Head of
Providence Equity's European operations. "Our partnership with our
co-investors Apax and Goldman Sachs Capital Partners has been very productive
and Kabel Deutschland's management has successfully transformed the company
into a growth-oriented business with a strong customer focus. Providence
Equity is fully committed to further expand Kabel Deutschland's product scope
and digital footprint for the benefit of our customers."

Kabel Deutschland will accelerate the upgrade of its cable network and
invest approximately EUR500 million over the next three years to offer
triple play services to close to 90% of its 15.3 million homes passed in
Germany.

The terms of the agreement signed today have not been disclosed. The
transaction is subject to customary approval of the relevant governmental
authorities and is expected to close in the first quarter of 2006.

KDG operates the cable networks in 13 German states and generated sales
of more than 1 bn Euros in the financial year 2004/2005 (End March 05).

About Apax:

Apax Partners is one of the world's leading private equity investment
groups, operating across the United States, Europe and Israel. Apax Partners
has raised or advised approximately US$20 billion around the world. With more
than 30 years of direct investing experience, Apax Partners' Funds provide
long-term equity financing to build and strengthen world-class companies. It
pursues a multi-stage equity investment strategy, investing in late venture,
growth capital and buyouts.

Apax Partners' Funds invest in companies across its global sectors of
Tech & Telecoms, Retail & Consumer, Media, Healthcare and Financial &
Business Services.

For additional information, see: www.apax.com

About Goldman Sachs:

Goldman Sachs is a leading global investment banking, securities and
investment management firm that provides a wide range of services worldwide
to a substantial and diversified client base that includes corporations,
financial institutions, governments and high net worth individuals. Founded
in 1869, it is one of the oldest and largest investment banking firms. The
firm is headquartered in New York and maintains offices in London,
Frankfurt, Tokyo , Hong Kong and other major financial centres around the
world. The Frankfurt office is responsible for the business of Goldman Sachs
in Germany and Austria . It opened in 1990 and employs around 350 people in
Investment Banking, Equities, Fixed Income and Investment Management.
Customers in Germany range from large corporations and the family-owned
Mittelstand companies which form the backbone of the German economy to the
German Federal and State Governments. Goldman Sachs has a German banking
licence, is a member of the Frankfurt Stock Exchange and the Bundesverband
Deutscher Banken and belongs to the bidding group of Bund auctions.

Goldman Sachs Capital Partners, the firm's private equity funds business,
has been active in Europe since 1993. In April 2005, Goldman Sachs closed the
GS Capital Partners V Fund with US$8.5 billion in committed capital. GS
Capital Partners V is the current primary investment vehicle for Goldman
Sachs to make privately negotiated equity investments. Recent investments in
Europe include Prysmian Cable, ISS, Ahlsell and Eutelsat. Notable investments
in Germany include Kabel Deutschland, Messer Griesheim, Cognis and Wincor
Nixdorf.

About Providence Equity Partner Inc.:

Providence Equity Partners Inc. is a global private investment firm
specialising in equity investments in media, communications and information
companies around the world. The principals of Providence Equity manage funds
with over US$9.0 billion in equity commitments, including Providence Equity
Partners V, a US$4.25 billion private equity fund, and have invested in more
than 80 companies operating in over 20 countries since the firm's inception
in 1990. Significant investments include VoiceStream Wireless, PanAmSat,
Western Wireless, eircom, Casema, Comhem, Metro-Goldwyn-Mayer,
ProSiebenSat.1, Ono, Warner Music Group, Recoletos, and Bresnan Broadband
Holdings. Providence Equity has offices in Providence, Rhode Island, London,
England, and New York, New York.

Media contacts:
APAX
Ira Wülfing Kommunikation
Ira Wülfing
+49-89-2000-30-33
ira@wuelfing-kommunikation.de

Goldman Sachs
David Kamenetzky
+49-69-7532-2644
David.kamenetzky@gs.com

Providence Equity Partners
Andrew Cole
+1-212-687-8080
acole@sardverb.com

Roland Klein
+44-7776-162-997
roland.klein@cnc-ag.com

Source: Kabel Deutschland GmbH

Media contacts: Apax, Ira Wülfing Kommunikation, Ira Wülfing, +49-89-2000-30-33, ira@wuelfing-kommunikation.de. Goldman Sachs, David Kamenetzky, +49-69-7532-2644, David.kamenetzky@gs.com. Providence Equity Partners, Andrew Cole, +1-212-687-8080, acole@sardverb.com. Roland Klein, +44-7776-162-997, roland.klein@cnc-ag.com

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