Istithmar Reaches Definitive Agreement to Acquire Barneys

Istithmar Reaches Definitive Agreement to Acquire Barneys

August 10, 2007

    DUBAI, United Arab Emirates, Aug. 10
/Xinhua-PRNewswire/ -- Istithmar, the leading Dubai based
private equity and alternative investment house
successfully reached agreement to acquire luxury retailer
chain Barneys New York, at a final purchase price of
US$942.3 million, after negotiations came to a close
yesterday.

    (Logo: 
http://www.newscom.com/cgi-bin/prnh/20070805/268060 )

    In a statement issued today, H. E. Sultan Ahmed Bin
Sulayem, Executive Chairman of Istithmar said, "We are
excited to acquire Barneys New York. Barneys is a unique
global asset with incredible growth prospects within the
luxury market. We look forward to working with Barneys as
both a financial and strategic partner. We intend to grow
the company in the US and in international markets."

    Elaborating on the transaction, Khaled Al Kamda, Vice
Chairman of Istithmar World, commented, "This
investment will accelerate the growth of Barneys' business
by leveraging Istithmar's experience in the sector and
other investments worldwide."

    David Jackson, CEO of Istithmar said, "Securing
Barneys is indeed a major win for Istithmar: boosting the
brand strength of our retail portfolio, while creating
opportunities to maximize its value through the team's
strategic plans to enter new markets. Right from the start,
we have embraced a laser-sharp focus on this deal. Barneys
is a quintessential brand, and we see immense growth
potential which we are confident of realizing in the
long-term."

    Peter J Solomon Co. and Citigroup acted as M&A
advisors to Istithmar, Cleary Gottlieb Steen & Hamilton
LLP acted as legal advisor to Istithmar, KPMG provided
financial and tax advisory services and McKinsey acted as
strategic consultant. Citigroup is providing committed
financing for the acquisition. 

    About Istithmar:

    Istithmar is a private equity and alternative
investment house headquartered in Dubai, the United Arab
Emirates, with offices in Shanghai and New York.
Established in 2003, it is 100% owned by Dubai World which
in turn is wholly owned by the Government of Dubai. In the
three years since its inception, Istithmar has invested in
over 30 companies in three sectors -- consumer, industrial
and financial services - deploying in excess of $1.6
billion of capital. Istithmar's 'I' Investment Philosophy
is based around three core principles -- Ideas, Inquiry and
Integrity - and is the foundation on which the firm has
established a broad portfolio of highly successful
investments in the markets from North America and Europe to
Asia and the Middle East. 






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