KKR Establishes First of its Kind Green Portfolio Project
KKR today announced a groundbreaking partnership with Environmental Defense Fund (EDF) in which the organizations will work together to measure and improve the environmental performance of companies within KKR’s U.S. portfolio, similar to the way KKR drives financial improvement.

Building on the Success of the Historic TXU Transaction
This partnership is a direct result of KKR’s work with EDF and other environmental leaders during the TXU acquisition last year. That historic transaction was a significant step forward in incorporating environmental considerations into investment decisions as it set a new standard for conservation and efficiency in the energy industry.

A Partnership With Lasting Benefits
Over the next three to six months, EDF and KKR will conduct pilot projects within the KKR portfolio to develop analytic tools that can then be applied across a broader range of KKR portfolio companies over the next year. These tools will enable managers to cost-effectively improve efficiency, reduce waste and address environmental impacts, such as:

Greenhouse gas emissions;
Use of toxic substances;
Waste generation; or
Water consumption.

Once developed, EDF and KKR will make the processes, tools and results of their joint effort publicly available, with the mutual goal of having these tools implemented by other companies around the world.

KKR Also Participating in EDF’s Climate Corps Program
In addition to the Green Portfolio Project, KKR has committed to improving the energy efficiency of its own office operations, including by participating in EDF’s Climate Corps Program.

As part of this commitment, KKR will undergo an energy audit of its offices and analyze and implement energy efficiency improvements.

Additional Information
To view the press release from today’s announcement please visit: http://www.kkr.com/news/press_releases/2008/05-01-08.html

To learn more about EDF please visit: www.edf.org

To view EDF’s announcement of this partnership please visit: http://www.edf.org/page.cfm?tagID=22237

To learn more about EDF’s Climate Corps Program please visit: http://www.edf.org/page.cfm?tagID=5709