Istithmar to acquire Loehmann's for AED 1.1 Billion ($300 Million)

The transaction, valued at AED 1.1 billion ($300 million), is subject to closing conditions. Arcapita acquired Loehmann's in October 2004 for a transaction value of approximately AED 653 million ($178 million).

Founded in 1921 and based in New York City, Loehmann's is a leading U.S. specialty retailer of well-known designer and brand name women's and men's fashion apparel, accessories and shoes at prices that are typically 30 percent to 65 percent below department store prices. Loehmann's currently operates 60 stores in major metropolitan markets located in 17 states.

Sultan bin Sulayem, Executive Chairman of Istithmar commented,

"Istithmar has worked alongside Arcapita and Loehmann's, holding a Board Seat since it made a significant indirect investment in the company in early 2005. We look forward to working closely with Loehmann's management to continue the strong track record of growth."

David Jackson, Chief Investment Officer continued, "Our expanded investment in Loehmann's reflects our strategy within the retail sector of focusing on unique concepts at the top and bottom ends of the market. Combined with a first-rate management, we have great plans for the future of Loehmann's."

Loehmann's Chief Executive Officer Robert N. Friedman said, "We are pleased that the value of our business model and organization is being recognized and endorsed by major investment houses like Arcapita and Istithmar. We are proud to be a new member of the Istithmar portfolio of companies and look forward to our partnership as we continue to expand and take the business to the next level."

Charles H. Ogburn, Arcapita's Global Head of Corporate Investment, said "We are pleased to announce the profitable sale of Loehmann's after a holding period of less than two years. To date, we have exited from six corporate portfolio companies for total transaction values in excess of $1.1 billion, generating attractive returns for our investors."

Stockton Croft, Director and Head of U.S. Corporate Investments for Arcapita, said, "We took the company private in 2004 and have worked with Loehmann's management to execute its growth strategy which comprised opening new stores and establishing a footwear franchise. The successful completion of this sizeable transaction with Istithmar will solidify our position as a leading mid-market private equity player in the United States."

Peter. J. Solomon acted as financial advisor to Istithmar and Cleary Gottlieb Steen & Hamilton acted as legal advisor on the transaction. Lehman Brothers acted as Arcapita's exclusive financial advisor and King & Spalding as legal advisor.