FOR IMMEDIATE RELEASE

Business Inquiries: KPS      212.338.5100

Media Relations: Mark Semer / Joe Kuo     212.521.4800

New York, NY (November 9, 2006) -- KPS Special Situations Funds (“KPS”) announced today that it has signed a definitive agreement to sell its portfolio company, Wire Rope Corporation of America, Inc. (“WRCA”), to Fox Paine Capital Fund III, L.P. (“Fox Paine”).  Financial terms of the transaction were not disclosed.

The transaction represents the fourth sale of a portfolio company by KPS this year, and the eighth liquidity event involving an investment of KPS Special Situations Fund II.

David Shapiro, a Managing Principal of KPS, stated, “Our investment in WRCA is a textbook example of the KPS strategy at work.  During the three years of our ownership, WRCA completed a stunning turnaround.  We are proud to have been the catalyst for the transformation of WRCA into a growing, profitable company with a global footprint and leadership position in its industry.  We thank Ira Glazer, WRCA’s Chief Executive Officer, the company’s management team and all of its employees for their hard work and dedication.  The value created at WRCA since our original acquisition is the result of their collective efforts.” 

Mr. Glazer added, “KPS deserves an enormous amount of credit for being one of the few investors in the world to recognize the potential value of our business three years ago.  We are grateful to them for providing our team with the blueprint, capital and other resources necessary to first execute our turnaround and then to expand through our 2005 acquisition of Aceros Camesa in Mexico and our recent joint venture in China.”    

Mr. Shapiro concluded, “The sale to Fox Paine represents the next logical step in the evolution of WRCA now that the company is positioned for growth.  Fox Paine has a proven track record of growing businesses, especially internationally.  We are confident that under Fox Paine’s ownership WRCA will have a very bright future.”

Jefferies & Company, Inc. acted as the financial advisor to WRCA.

The transaction is expected to be completed in the fourth quarter of 2006.

About Wire Rope Corporation of America

Wire Rope Corporation of America, Inc., based in St. Joseph, Missouri, is the largest manufacturer of wire rope and electromechanical cable in the Western Hemisphere.  Through domestic and global manufacturing, it distributes wire rope and fabricated products worldwide.  WRCA is the only major wire rope manufacturer in the world to be API certified, QPL Qualified, and ISO-9001:2000 registered.  The company operates seven manufacturing facilities in the United States and Mexico. 

About KPS Special Situations Funds

KPS Special Situations Funds are a family of private equity funds with over $600 million of committed capital focused on constructive investing in restructurings, turnarounds and other special situations.  KPS has created new companies to purchase operating assets out of bankruptcy; established stand-alone entities to operate divested assets; and recapitalized highly-leveraged public and private companies.  The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems.  KPS invests its capital concurrently with a turnaround plan predicated on cost reduction, capital investment, and capital availability.  Typically, the KPS turnaround plan is accompanied by a financial restructuring of the company's liabilities.  The KPS investment strategy and portfolio companies are described in detail at the firm’s website: www.kpsfund.com.