KKR & Co. L.P.

Qingdao Haier, KKR Form Strategic Partnership

09.30.2013

Will Fuel Global Growth of China's Leading Home Appliance Manufacturer

HONG KONG & BEIJING--(BUSINESS WIRE)-- Global leading home appliance manufacturer Qingdao Haier Co., Ltd ("Qingdao Haier") (SSE stock code: 600690) and KKR, a leading global investment firm with US$83.5 billion in assets under management, announced the signing of a definitive agreement under which KKR will acquire a 10% stake in Qingdao Haier, establishing a long-term strategic partnership to collaborate on multiple areas.

Qingdao Haier is a global market leader in home appliances. Through its forward-looking strategic vision, Qingdao Haier implemented an innovative win-win management model that aligns employee performance goals with customer's needs. With its focus on product innovation, building a fully integrated online/offline platform and creating a highly efficient "made to order" distribution channel, Qingdao Haier has achieved high-quality sustainable growth while building a widely-respected global brand. According to the latest figures from China Market Monitor, Qingdao Haier has consistently maintained the market leadership positions in major home appliance categories such as refrigerators, washers, air-conditioners and water heaters.

Commenting on their partnership with KKR, Qingdao Haier Chairman Mr Liang Haishan said, "By the end of 2012, the Company entered the crucial 'online' strategic phase of its long-term growth plan. We welcome the world-class investment firm KKR to become our long-term strategic partner which will help us effectively execute our growth strategies. KKR's investment is a strong endorsement of our past achievements and future potential. We believe KKR's global resources, operational expertise and experienced local team will help Qingdao Haier to further strength its market leadership position on a global basis."

Qingdao Haier Vice Chairwoman Ms Tan Lixia added, "KKR's ‘industrialist' investment approach, focusing on long-term value creation, is the perfect match to Haier's corporate culture. We believe KKR's strong capital market expertise and deep international M&A experience will help Haier to further grow its global platform and create value to all shareholders."

Established in 1976, KKR pioneered the private equity industry and is a leading global investment firm. In its 37-year history, KKR has completed investments with over US$470 billion in total enterprise value across 25 industries. KKR seeks to combine its global resources and network with local expertise to assist its investment companies by bringing value-add beyond capital. KKR's China efforts and team highlight this approach, as they have invested through different economic cycles and in a number of market leading companies in China.

"Qingdao Haier is one of the most respected Chinese companies with a market leading position, an outstanding historical track record and an outstanding management team. We are delighted to have the opportunity to partner with such an excellent company," said David Liu, Member of KKR and CEO of KKR Greater China.

"We look forward to fully utilizing KKR's global resources and local expertise to assist Qingdao Haier in its next phase of growth by capitalizing on the opportunities created by China's continued urbanization and increasing consumer income trend, while also accelerating its international expansion" added Mr. Liu.

The transaction is subject to customary regulatory and shareholder approvals. For more details on this transaction, please refer to Qingdao Haier's share placement plan.

ABOUT QINGDAO HAIER CO., LTD.

Founded in 1989, Qingdao Haier transformed from an insolvent collectively-owned factory on the brink of bankruptcy into the No.1 global home appliance brand. On 19th November 1993, Qingdao Haier was listed in Shanghai Stock exchange (SH: 600690). As of 30th June 2013, Qingdao Haier has 2,695,909,540 shares outstanding, $8.85bn total assets and $2.01bn shareholder's equity. In 2012, achieved $13.05bn sales and $534 m net income. Qingdao Haier's strategy has always centered on using innovative solutions to satisfy consumer demand and achieve sustainable long term growth. The Company continues maintain strong competitive advantage in the fast moving environment through brand building, establishing effective sales channels, research & developments and continuous operational improvements.

ABOUT KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $83.5 billion in assets under management as of June 30, 2013. With offices around the world, including Beijing, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with fund investors through its client relationships and capital markets platform. KKR & Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR) and "KKR", as used in this release, includes its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate. For additional information, please visit KKR's website at www.kkr.com

Key Media Contacts:
KKR:
Kwai Seng Chan -- Hill+Knowlton Strategies Asia
T: +852 2894 6314
E: kwaiseng.chan@hkstrategies.com
or
Sissi Feng -- New Alliance Consulting International
T: +8610 6580 9510
E: sissi.feng@alliance.com.cn
or
Steven R. Okun -- KKR (Asia)
T: +65 6922 5800
E: steven.okun@kkr.com
or
Kristi Huller -- KKR (New York)
T: +1 212 230 9722
E: kristi.huller@kkr.com

Source: Kohlberg Kravis Roberts & Co. L.P.

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