KPS SPECIAL SITUATIONS FUNDS ANNOUNCE ADDITIONS TO THEIR INVESTMENT TEAM

New York, NY (March 14, 2005) -- Today, the KPS Special Situations Funds announced the promotion of Jay Bernstein and the addition of Bruce Curley and Ilya Koffman to their Investment Team.

Jay Bernstein has been promoted to Senior Vice President. Mr. Bernstein joined KPS over six years ago and has played a significant role in the firm’s growth and success. This promotion recognizes his contributions to the firm and his development into a senior dealmaker and key investment professional.

Bruce Curley joins KPS as a Senior Vice President. Mr. Curley was previously Chief Executive Officer of Curtis Papers Inc. and held executive positions with International Paper, Boise Cascade and Mead. He is an experienced manufacturing executive and engineer and will focus on enhancing the operations of KPS’ portfolio companies.

Ilya Koffman will join KPS as an Associate. Mr. Koffman was previously with Alvarez & Marsal, a leading turnaround management consulting firm, where he worked on a number of challenging restructuring assignments. Prior to joining Alvarez & Marsal, he was an investment banker.

“We are pleased to recognize Jay’s development into a senior investment professional and are excited to enhance our team with an accomplished operating professional in Bruce Curley and an experienced turnaround professional in Ilya Koffman,” said Michael Psaros, a KPS Principal.

The Principals of KPS Funds, Eugene Keilin, Michael Psaros, David Shapiro and Raquel Palmer, have worked together as a team for over a decade. “We are in the midst of investing our $404 million KPS II fund and are pleased to announce the addition of new professionals to our team who will enhance both our deal-making capabilities and the management of our portfolio companies,” said Mr. Shapiro.

KPS also announced the conclusion of the turnaround advisory business formerly conducted by an affiliate, Keilin & Co., LLC. During the past seven years, Keilin & Co. completed a limited number of restructuring advisory assignments for certain longstanding clients. ”Since we founded KPS, we have focused on creating value for our Limited Partners and portfolio companies, and these changes only strengthen that commitment,” said Mr. Keilin.

About KPS Special Situations Funds

KPS Special Situations Funds are a family of private equity funds with more than $600 million of committed capital focused on constructive investing in restructurings, turnarounds and other special situations. KPS purchases operating assets out of bankruptcy, establishes stand-alone entities to operate divested assets, and recapitalizes highly-leveraged public and private companies. The KPS investment strategy and information about its portfolio companies can be found at www.kpsfund.com.