FOR IMMEDIATE RELEASE

Business Inquiries: KPS Capital Partners     212.338.5100

Media Relations: Mark Semer/Joseph Kuo     212.521.4800

New York, NY (January 18, 2007) -- KPS Capital Partners, LP ("KPS") announced today that a newly formed affiliate, Attends Healthcare, Inc. (“Attends Healthcare”), has acquired PaperPak Products, Inc. (“PaperPak”) from Attends Healthcare Investments Ltd. Financial terms of the transaction were not disclosed.

PaperPak is a leading manufacturer and distributor of a complete line of adult incontinence products for the North American marketplace that are sold primarily under the Attends brand name. PaperPak primarily serves the non-retail sectors with a focus on the acute care, long-term care, and rapidly growing home healthcare sectors. Headquartered in Greenville, North Carolina, PaperPak operates two manufacturing facilities located in North Carolina and California.
(www.paperpak.com and www.attends.com)

Michael Fagan will continue to serve as Chief Executive Officer under KPS' ownership. Mr. Fagan and his management team will implement a business plan developed in partnership with KPS, focused on improving operations and aggressively growing the company both organically and through acquisition. The KPS transaction will provide access to substantial capital that will be invested in the further development of the Attends brand name.

Raquel Palmer, a Partner of KPS, said "We are very excited to work with Michael Fagan and his team at PaperPak to capitalize on the enormous growth opportunity presented by the adult incontinence market. Attends is the recognized leader in the industry for product quality, innovation and technology, with a brand name and franchise that cannot be replicated. We are confident that under our ownership, with access to our expertise and capital for growth, Attends will build upon the exceptional foundation that exists today and achieve its full potential.”

Mr. Fagan said, "We are thrilled to establish this new enterprise in partnership with KPS. We look forward to aggressively growing the business by building on Attends’ heritage of superior user comfort and care. Additionally, we plan to accelerate the introduction of innovative personal care solutions focused on providing more convenience and value to our customers. This transaction furthers the tremendous momentum of the company and is a very positive event for our customers, vendors and employees."

This transaction is the third acquisition by KPS of a non-core North American business divested by a European seller.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS in the transaction.

PaperPak was represented in the transaction by KGI Capital Partners, a division of Kibel Green Inc., and Hogan & Hartson, LLP.

About KPS Capital Partners, LP

KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, 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.