Hephaestus Holdings, Inc. (“HHI”), through its Jernberg Holdings, Inc. and Impact Forge Holdings, Inc. subsidiaries, is the largest independent manufacturer of forged parts for the North American automotive industry. Headquartered in Chicago, Illinois, Jernberg Industries, Inc. (“Jernberg”) is one of North America’s leading manufacturers of highly-engineered forged parts for various power-train and wheel-end applications in the automotive industry. Products manufactured by Jernberg include wheel hubs, transmission turbine hubs, and axle ring and pinion gears. With over 800 employees, Jernberg operates four manufacturing facilities located in Chicago, Illinois. Through HHI, KPS Special Situations Fund II created Jernberg Holdings, Inc. to purchase certain assets of Jernberg Industries Inc., Iron Mountain Industries, LLC and related entities, pursuant to a 363 sale of assets under a Chapter 11 bankruptcy proceeding. Very important to the success of the transaction was the support of the United Steelworkers. www.jernberg.com NEWS ARTICLES: December 21, 2006 THE WALL STREET JOURNAL "How Financiers Pursue Profit At Skidding Auto-Parts Maker" October 3, 2006 KPS Special Situations Funds' Portfolio Company, Hephaestus Holdings, Inc., Announces Sale of Minority Equity Interest to Mitsubishi Corporation July 18, 2006 KPS Special Situations Funds' Portfolio Company, Jernberg Holdings, Inc., A Subsidiary Of Hephaestus Holdings, Inc., Completes $57 Million Recapitalization March 6, 2006 BUYOUTS "KPS Tunes Up Auto Parts Maker" September 8, 2005 KPS Completes Acquisition Of Jernberg Industries Inc., Iron Mountain Industries LLC And Related Entities Out Of Chapter 11 Bankruptcy September 5, 2005 BUYOUTS "KPS Wades Into Auto Space"