Oak Hill Capital Partners Acquires Caribbean Restaurants

While the financial terms of the transaction were not publicly disclosed, Oak Hill Capital Partners purchased a 73 percent interest in Caribbean Restaurants, current management retained 17 percent interest and affiliates of American Securities Capital Partners, L.P., the selling shareholder group, retained a 10 percent interest in the Company.

Caribbean Restaurants, Inc. holds the exclusive territorial development agreement to franchise Burger King restaurants in Puerto Rico. The Company is the fifth largest franchisee in the worldwide Burger King system and is the largest fast food operator in Puerto Rico, operating 133 restaurants on the island. Caribbean Restaurants has operated Burger King restaurants in Puerto Rico for more than 35 years.

Mark Wolfson, Managing Partner of Oak Hill Capital Partners, L.P., commented that, "Caribbean Restaurants is Puerto Rico's market leader in the fast food industry and has demonstrated significant expansion potential and the benefits of a great brand. Unlike other franchisees, Caribbean Restaurants owns and manages all 133 Burger King restaurants on the island, affording it important competitive advantages. What ultimately distinguishes Caribbean Restaurants, however, is its management team, which is recognized as one of the best in the fast food industry anywhere in the world."

David L. Horing, Managing Director of American Securities Capital Partners, L.P., said, "During the past three years, our investment has been positively impacted by Caribbean Restaurants' rapid expansion, strong same store sales growth and increasing margins. Given our faith in the management team and our confidence in Oak Hill Capital Parnters with whom we have invested in the past, we are delighted to retain an ongoing interest in the Company and we look forward to continuing our relationships with both Caribbean Restaurants and Oak Hill."

Oak Hill Capital Partners, L.P. is a newly formed $1.6 billion private equity partnership founded by Robert M. Bass and his longtime team of investment professionals. Oak Hill Capital makes significant investments through acquisitions, build-ups, recapitalizations, restructurings, strategic joint ventures and the purchase of minority stakes across a wide range of industries. Investments to date include: the formation of MeriStar Investment Partners, L.P., the announced acquisition of Airfone from GTE, a significant minority investment in American Skiing Company and a strategic investment in Cincinatti Bell, Inc., which is merging with IXC Communications, Inc.

American Securities Capital Partners, L.P., is a private equity investment firm based in New York that manages over $500 million of capital on behalf of wealthy families and select institutions. ASCP's investment philosophy is to make control investments in companies with leading market positions in attractive industries and to partner with exceptional management teams to maximize the growth and profitability of its portfolio investments. ASCP's current portfolio companies include CTB International Corp., Dr. Leonard's Healthcare Corp., Anthony International and CPI Corp.