Blackstone to Invest in Allcargo

20 February 2008

New York/ Mumbai, 20th February, 2008: The Blackstone Group (NYSE: BX; www.blackstone.com), announced today that the Board of Directors of Allcargo Global Logistics Limited (“Allcargo”) has approved an investment of US$60 million by The Blackstone Group and its affiliates (“Blackstone”) subject to seeking the necessary mandatory and regulatory clearances. As part of this transaction, Blackstone will have representation on the Board of Allcargo. Blackstone also intends to purchase additional shares of Allcargo from the open market from time to time, but intends to maintain its ownership below 15.0%. Allcargo will raise the US$60 million through a fresh issue of equity shares, fully and compulsorily convertible debentures and optionally convertible warrants. Allcargo is a leading Indian private sector logistics operator and a niche global logistics player.

Commenting on the deal Mr. Shashi Kiran Shetty, Chairman and Managing Director of Allcargo, said, “We are excited about the investment by The Blackstone Group and value their association as our long term partner. With their global reach and proactive approach, they bring immense value to the company. This investment will allow us to execute our organic and inorganic growth plans and continue to strengthen our leadership position in the logistics space. The company had considered several financing options, but we decided to partner with Blackstone because we believe that at this stage of our growth we have an opportunity to create significant value by leveraging Blackstone’s outstanding experience and track record.”

Mr. Akhil Gupta, Chairman and Managing Director of Blackstone Advisors India Private Limited, said, “We are confident that the Indian logistics sector will experience significant growth in the coming years. India is seeing buoyant economic growth, improvements in infrastructure, and a rationalisation of the country’s tax structures, and Allcargo is an ideal platform for Blackstone to be in this highly attractive sector. Mr. Shetty has created a strong logistics company with a enviable market position in the Container Freight Stations (CFS) segment and is currently implementing its growth plans in the Inland Container Depot (ICD) segment. Also, through its successful acquisition and integration of ECU Line, the leading global neutral Less than Container Load (LCL) consolidator, it has been able to generate significant synergy. We are impressed by the breadth and depth of Allcargo’s management team, and look forward to partnering with the Company through its critical growth phase.”

About Allcargo Global Logistics Limited

Allcargo is a leading Indian private sector logistics operator. It is amongst the top three CFS operators in India and one of the best CFS operators at Nhava Sheva (India’s largest container port terminal). It is the largest domestic LCL consolidator, and has strategic presence in the domestic project cargo and logistics equipment supply businesses. Its wholly owned subsidiary, ECU Line, is the second largest global neutral LCL consolidator with over 100 offices across 60 countries.

About The Blackstone Group

The Blackstone Group is a leading global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service. Further information is available at www.blackstone.com.

Contacts:

The Blackstone Group

Sophia Harrison
London
+44 (0)20 7451 4295 / +44 (0)7900 162 417
[email protected]

Helen Winning
London
+44 (0)20 7451 4344 / +44 (0)7903 151034
[email protected]

IPAN

Vinod Moorthy
Mumbai
+91 22 2266 1755
[email protected]