Providence Completes KDG Buy

LONDON and UNTERFOEHRING, Germany -- Providence Equity Partners announced today that it has now received clearance from regulatory authorities in Germany to complete its takeover of Kabel Deutschland (KDG).

Providence Equity agreed in December 2005 to buy out the KDG stakes owned by fellow shareholders Apax Partners and Goldman Sachs Capital Partners. Following the regulatory approval, the transaction will close by February 8, 2006. The acquisition will give Providence control of approximately 95% of Europe's largest cable company with the rest held by KDG's management. Terms of the acquisition were not disclosed.

Providence Equity which holds substantial investments in European cable companies in the Netherlands, Spain and Sweden (pending), is supporting KDG's strategy to transition from a traditional analog cable TV company into an innovative provider of cable services including pay-TV, Broadband Internet and Telephony. KDG will invest significantly into the network and accelerate the upgrade of ist cable network and offer triple play services to close to 90% of ist 15.3 million homes passed in Germany. KDG operates the cable networks in 13 German states and generated sales of more than EUR1 billion in the financial year ended March 2005.

Providence Equity Partners