KKR Private Equity Investors Reports Results for Quarter Ended June 30, 2008

July 27, 2008

NAV per Unit of $22.25 as of June 30, 2008

GUERNSEY, Channel Islands--(BUSINESS WIRE)--KKR Private Equity Investors, L.P. ( Amsterdam: KPE), a Guernsey limited partnership that invests its assets in private equity and opportunistic investments identified by & Co. (“KKR”), today reported its financial results for the quarter and six months ended June 30, 2008. As of June 30, 2008, KPE’s net asset value (“NAV”) was $4,558.2 million, or $22.25 per unit.

Results of Operations

Operating results of KPE for the quarter ended June 30, 2008 are highlighted as follows:

Net realized loss on investments and foreign currency was $42.5 million. The net realized loss was primarily comprised of $23.4 million from the secondary sales of investments in limited partner interests of the KKR 2006 Fund L.P. (“KKR 2006 Fund”) and the KKR Millennium Fund L.P. (“KKR Millennium Fund”) and $19.9 million from the sale of opportunistic investments in public equities and derivative instruments, offset by a realized gain of $5.7 million from the partial sale of security holdings in Rockwood Holdings, Inc. and the final disposition of KSL Holdings – La Costa by KKR’s private equity funds;

Net unrealized depreciation on investments and foreign currency transactions was $98.7 million. The changes in the unrealized fair value of investments from March 31, 2008 to June 30, 2008 were: A net decrease of $138.2 million in the value of the investment in ProSiebenSat.1 Media AG (“ProSieben”), which was marked on a Euro basis from 0.7 times original cost as of March 31, 2008 to 0.2 times as of June 30, 2008, and the related foreign currency exchange contract. Including foreign currency translation, the ProSieben investment was marked on a U.S. dollar basis from 0.9 times to 0.2 times as of June 30, 2008;

A net decrease of $48.7 million in the value of the investment in PagesJaunes Groupe S.A. (“PagesJaunes”), based on a market quotation on a U.S. dollar basis, and the related foreign currency exchange contract;

A decrease of $48.9 million in the value of the convertible senior note investment in Sun Microsystems, Inc. (“Sun”);

A decrease of $34.2 million in the value of Aero Technical Support & Services S.à r.l. (“ACTS”), which was marked on both a Canadian dollar and U.S. dollar basis from 1.0 times original cost to 0.7 times as of June 30, 2008;

A decrease of $25.3 million in the value of Legrand Holdings S.A. (“Legrand”), based on a market quotation on a U.S. dollar basis;

A decrease of $14.8 million in the value of Capmark Financial Group Inc. (“Capmark”), which was marked from 1.2 times KPE’s cost as of March 31, 2008 to 1.1 times as of June 30, 2008;

An increase of $132.8 million in the value of Corp. (“EFH”), which was marked from 1.0 times original cost to 1.4 times as of June 30, 2008;

An increase of $31.0 million in the value of the convertible preferred stock investment in Orient Corporation (“Orico”) and the related foreign currency exchange contract; and

An increase of $21.2 million in the value of The Nielsen Company, B.V. (“Nielsen”), which was marked from 1.1 times original cost as of March 31, 2008 to 1.2 times as of June 30, 2008.

Net investment loss was $18.5 million, which principally represented interest expense and management fees, offset by interest and dividend income; and

The net decrease in net assets resulting from operations was $159.7 million and KPE’s total return was (3.4) percent during the quarter. KPE’s total return of (3.4) percent compared to a (3.2) percent return in the S&P 500 Index for the quarter ended June 30, 2008.

Operating results of KPE for the six months ended June 30, 2008 are highlighted as follows:

Net realized loss on investments and foreign currency was $38.5 million. The net realized loss was primarily comprised of $26.3 million from the sale of opportunistic investments in public equities and derivative instruments and $23.5 million from the secondary sales of investments in limited partner interests of the KKR 2006 Fund and the KKR Millennium Fund, offset by realized gains of $16.0 million from the sale of Demag Holdings, S.à r.l., the partial sale of security holdings in Rockwood Holdings, Inc. and the final disposition of KSL Holdings – La Costa by KKR’s private equity funds;

Net unrealized depreciation on investments and foreign currency transactions was $350.5 million. The changes in the unrealized fair value of investments from December 31, 2007 to June 30, 2008 were: A decrease of $175.6 million in the value of the investment in PagesJaunes, based on a market quotation on a U.S. dollar basis, and the related foreign currency exchange contract;

A decrease of $133.6 million in the value of the investment in ProSieben, which was marked on a Euro basis from 0.7 times original cost as of December 31, 2007 to 0.2 times as of June 30, 2008, and the related foreign currency exchange contract. Including foreign currency translation, the ProSieben investment was marked on a U.S. dollar basis from 0.8 times to 0.2 times as of June 30, 2008;

A decrease of $94.0 million in the value of the convertible senior note investment in Sun;

A decrease of $60.6 million in the value of Legrand, based on a market quotation on a U.S. dollar basis;

A decrease of $37.3 million in the value of ACTS, which was marked on both a Canadian dollar and U.S. dollar basis from 1.0 times original cost to 0.7 times as of June 30, 2008;

A decrease of $29.9 million in the value of Capmark, which was marked from 1.3 times KPE’s cost as of December 31, 2007 to 1.1 times as of June 30, 2008;

An increase of $132.8 million in the value of EFH, which was marked from 1.0 times original cost to 1.4 times as of June 30, 2008; and

An increase of $42.7 million in the value of Nielsen, which was marked from 1.0 times original cost to 1.2 times as of June 30, 2008.

Net investment loss was $39.5 million, which principally represented interest expense and management fees, offset by interest and dividend income; and

The net decrease in net assets resulting from operations was $428.6 million and KPE’s total return was (8.6) percent during the six months ended June 30, 2008. KPE’s total return of (8.6) percent compared to a (12.8) percent return in the S&P 500 Index for the six months ended June 30, 2008.

Investments

KPE invests its capital as the sole limited partner of KKR PEI Investments, L.P. (the “Investment Partnership”). As of June 30, 2008, the Investment Partnership’s portfolio of private equity investments, net of related financing, and opportunistic investments with a fair value of $5,019.4 million, was comprised of the following:

Investments of $1,666.9 million through KKR’s private equity funds: $1,159.0 million in KKR 2006 Fund L.P.,

$186.2 million in KKR European Fund, Limited Partnership,

$182.9 million in KKR Millennium Fund L.P.,

$86.4 million in KKR European Fund II, Limited Partnership,

$43.8 million in KKR Asian Fund, L.P., and

$8.6 million in KKR European Fund III, Limited Partnership.

Co-investments of $2,506.4 million in the following portfolio companies of KKR’s private equity funds:

-- plc. -- KION Group GmbH -- , Inc. -- The Nielsen Company B.V. -- Capmark Financial Group Inc. -- NXP B.V. -- Corporation -- PagesJaunes Groupe S.A. -- Energy Future Holdings Corp. -- ProSiebenSat. 1 Media AG -- First Data Corporation -- U.S. Foodservice, Inc. -- HCA Inc.

Negotiated equity investments of $502.1 million, net of related financing: $224.0 million (net of long-term financing of $350.0 million) of convertible senior notes of Sun, a leading technology company;

$196.8 million of convertible preferred stock of Orico, one of the largest consumer credit companies in Japan; and

$81.3 million invested in ACTS, a Canadian aircraft maintenance, repair and overhaul company.

Opportunistic investments of $344.0 million: Non-private equity fund investment of $173.9 million in SCF;

$116.5 million of a fixed income investment; and

$53.6 million of publicly traded securities and related derivative instruments.

Subsequent Investment Activity

Subsequent to June 30, 2008 and through July 25, 2008, the Investment Partnership had investment activity as described below.

Dispositions of opportunistic investments valued at $9.7 million as of June 30, 2008 for cash proceeds of $9.6 million, which included sales of publicly traded securities and related derivative instruments and proceeds from securities sold short.

Net return of capital of $4.3 million related to an investment in the KKR 2006 Fund.

Purchases of opportunistic investments of $9.5 million, which included acquisitions of public equities and related derivative instruments and settlements of securities sold short.

As of July 25, 2008, the Investment Partnership’s remaining capital commitments related to limited partner interests in KKR’s private equity funds were as follows, with amounts in thousands, after taking into account the subsequent investment activity described above:

KKR 2006 Fund L.P. $454,393 KKR European Fund III, Limited Partnership 291,192 KKR Asian Fund L.P. 244,812 KKR Millennium Fund L.P. 4,440 KKR European Fund II, Limited Partnership 1,010 $995,847

Liquidity and Capital Resources

As of July 25, 2008, the Investment Partnership had a pro forma cash balance of $122.2 million, which represented the cash balance as of June 30, 2008 and the net proceeds of cash from investment activity, described above, and the repayment of borrowings outstanding under the revolving credit facility, described below, that occurred from July 1, 2008 to July 25, 2008.

As of July 25, 2008, the Investment Partnership had drawn, on a pro forma basis, $508.0 million of its $1.0 billion five-year senior secured credit facility established on June 11, 2007, which represented borrowings outstanding as of June 30, 2008 less the repayment of borrowings with a fair value of $90.1 million that occurred from July 1, 2008 to July 25, 2008. The amount of cash used to pay such borrowings, which were denominated in British pounds sterling, was $89.8 million. As of July 25, 2008, the Investment Partnership’s pro forma availability for further borrowings under the credit facility was $492.0 million.

Business Combination Transaction

As announced today in a separate press release, KPE and KKR & Co. L.P. have entered into an agreement providing for the acquisition of all of the assets and assumption of all of the liabilities of KPE by KKR & Co. L.P. Please refer to such press release for further information.

Financial Report

KPE has posted its interim financial report, which includes its unaudited financial statements and the unaudited consolidated financial statements of the Investment Partnership, to its website (www.kkrprivateequityinvestors.com). KPE encourages investors to carefully read these documents accompanying this news release.

Information for Investors – Teleconference and Webcast

KPE will discuss its financial results and the previously announced business combination, described above, on a teleconference to be broadcast live on the Internet on Monday, July 28, 2008 at 2:00 p.m. CET (Amsterdam) / 1:00 p.m. GMT (Guernsey/London) / 8:00 a.m. EDT (New York City). A webcast (listen only) of the teleconference can be accessed via the Investor Relations section of KPE’s website at www.kkrprivateequityinvestors.com, as well as on KKR’s website at www.kkr.com.

About KPE

KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE) is a Guernsey limited partnership that seeks to create long-term value by participating in private equity and opportunistic investments selected, evaluated, structured, monitored and exited by investment professionals of Kohlberg Kravis Roberts & Co. (“KKR”). As of June 30, 2008, over 90% of KPE’s $5.4 billion portfolio was comprised of limited partner interests in six KKR private equity funds, co-investments in 13 companies alongside the private equity funds and negotiated equity investments. The remainder of KPE’s portfolio as of June 30, 2008 was invested in opportunistic and temporary investments. KPE is governed by its general partner’s board of directors, which has a majority of independent directors, and makes its investments as the sole limited partner of another Guernsey limited partnership, KKR PEI Investments, L.P.

The common units and related restricted depositary units of KPE are subject to a number of ownership and transfer restrictions. Information concerning these ownership and transfer restrictions is included in the Investor Relations section of KPE’s website at www.kkrprivateequityinvestors.com.

No Offering Statement

This release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from KPE and that will contain detailed information about KPE and management, as well as financial statements.

Forward-Looking Statements

This release may contain certain forward-looking statements with respect to the financial condition, results of operations, liquidity, investments, business, net asset value and prospects of KPE. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future, and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. KPE does not undertake to update any of these forward-looking statements.

KKR PRIVATE EQUITY INVESTORS, L.P. STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (Amounts in thousands, except unit and per unit amounts)

June 30, 2008 December 31, 2007 ASSETS:

Investments in limited partner interests of KKR PEI Investments, L.P., at fair value (cost of $4,826,568) $ 4,553,622 $ 4,984,533

Cash and cash equivalents 5,795 452 Prepaid expenses 376 141

Total assets 4,559,793 4,985,126

LIABILITIES: Accrued liabilities 1,353 1,823 Due to affiliate 264 930

Total liabilities 1,617 2,753

NET ASSETS $ 4,558,176 $ 4,982,373

NET ASSETS CONSIST OF: Partners’ capital contributions, net (common units outstanding of 204,902,226 and 204,550,001, respectively) $ 4,834,517 $ 4,830,110 Distributable earnings (loss) (276,341) 152,263

$ 4,558,176 $ 4,982,373

Net asset value per common unit $ 22.25 $ 24.36

Market price per common unit $ 12.75 $ 18.16

KKR PRIVATE EQUITY INVESTORS, L.P. STATEMENTS OF OPERATIONS (UNAUDITED) (AMOUNTS IN THOUSANDS)

Quarter Ended Six Months Ended June 30, June 30, June 30, June 30,

2008 2007 2008 2007 NET INVESTMENT INCOME (LOSS) ALLOCATED FROM

KKR PEI INVESTMENTS, L.P.: Investment income $ 15,480 $ 44,130 30,721 $ 83,182 Expenses 32,669 20,109 67,584 32,738 (17,189) 24,021 (36,863) 50,444

INVESTMENT INCOME—Interest income 34 19 60 28

EXPENSES—General and administrative expenses 1,297 1,496 2,743 2,862

NET INVESTMENT INCOME (LOSS) (18,452) 22,544 (39,546) 47,610

REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN

CURRENCY ALLOCATED FROM KKR PEI INVESTMENTS, L.P: Net realized gain (loss) (42,511) 5,094 (38,521) 16,604 Net change in unrealized appreciation (depreciation) (98,718) 122,327 (350,537) 242,684

Net gain (loss) on investments and foreign currency transactions (141,229) 127,421 (389,058) 259,288

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (159,681) $ 149,965 (428,604) $ 306,898

KKR PRIVATE EQUITY INVESTORS, L.P. STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (Amounts in thousands)

NET ASSETS—DECEMBER 31, 2006 $5,035,599

NET DECREASE IN NET ASSETS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2007: Net investment income 19,029 Net loss on investments and foreign currency transactions. (23,163)

Net decrease in net assets resulting from operations (4,134)

Distribution to unitholders (49,092)

NET ASSETS—DECEMBER 31, 2007 $4,982,373

NET DECREASE IN NET ASSETS FROM OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2008: Net investment loss (39,546) Net loss on investments and foreign currency transactions. (389,058)

Net decrease in net assets resulting from operations (428,604)

Partners’ capital contributions (issued 352,225 common units) 4,407

NET ASSETS—JUNE 30, 2008 $4,558,176

KKR PRIVATE EQUITY INVESTORS, L.P. STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands)

Six Months Ended Six Months Ended

June 30, 2008 June 30, 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net increase (decrease) in net assets resulting from operations $ (428,604) $ 306,898 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to cash

and cash equivalents provided by (used in) operating activities: Net investment loss (income) allocated from KKR PEI Investments, L.P. 36,863 (50,444) Net loss (gain) on investments and foreign currency transactions allocated from KKR PEI

Investments, L.P. 389,058 (259,288) Share-based compensation expense. 24 8 Changes in operating assets and liabilities: Distribution received from KKR PEI Investments, L.P. 4,990 1,996 Increase in prepaid expenses (235) (198) Increase (decrease) in accrued liabilities (494) 239 Increase (decrease) in due to affiliate (666) 32

Net cash flows provided by (used in) operating activities 936 (757)

CASH FLOWS FROM FINANCING ACTIVITIES: Partners’ capital contributions 4,407 —

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,343 (757)

CASH AND CASH EQUIVALENTS—Beginning of period 452 1,116

CASH AND CASH EQUIVALENTS—End of period $ 5,795 $ 359

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (Amounts in thousands)

June 30, December 31,

2008 2007

ASSETS: Investments, at fair value: Opportunistic investments—Class A (cost of $210,637 and $512,607, respectively) $ 170,071 $ 458,792 Co-investments in portfolio companies of private equity funds—Class B (cost of $2,635,583 and $2,635,583,

respectively) 2,506,347 2,653,039 Negotiated equity investments—Class B (cost of $992,582 and $992,582, respectively) 852,121 985,557 Private equity funds—Class C (cost of $1,651,452 and $1,813,751, respectively) 1,666,940 1,847,887 Non-private equity funds—Class D (cost of $196,093 and $195,869, respectively) 173,953 189,345 5,369,432 6,134,620

Cash and cash equivalents 207,613 255,415 Cash and cash equivalents held by a non-private equity fund 139 1,091 Restricted cash 73,766 42,237 Due from affiliate of a non-private equity fund 814 — Other assets 6,743 8,044 Total assets 5,658,507 6,441,407

LIABILITIES: Accrued liabilities 35,443 30,730 Due to affiliates 11,399 11,961 Securities sold, not yet purchased (proceeds of $4,682) 3,945 — Options written (proceeds of $1,135 and $7,290, respectively ) 1,008 5,265 Unrealized loss on foreign currency exchange contracts and interest rate swap, net 95,307 46,051 Other liabilities 116 182 Revolving credit agreement 598,064 1,002,240 Long-term debt 350,000 350,000 Total liabilities 1,095,282 1,446,429

NET ASSETS $ 4,563,225 $ 4,994,978

NET ASSETS CONSIST OF: Partners’ capital contributions $ 4,836,568 $ 4,836,568 Distributable earnings (loss) (273,343) 158,410

$ 4,563,225 $ 4,994,978

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) (Amounts in thousands, except percentage amounts)

June 30, 2008 Fair Value as a Fair Percentage Investment Class Cost Value of Net Assets

INVESTMENTS BY TYPE: Opportunistic investments: A Fixed income investment $ 140,940 $ 116,487 2.5% Public equities – common stocks 69,283 53,072 1.2 Derivative instruments 414 512 0.0 210,637 170,071 3.7

Co-investments in portfolio companies of private equity funds: B HCA Inc. 250,000 300,000 6.6 Alliance Boots plc. 301,352 298,797 6.5 Energy Future Holdings Corp. 200,000 280,000 6.1 Dollar General Corporation 250,000 250,000 5.5 The Nielsen Company B.V. 200,000 240,000 5.3 NXP B.V. 250,000 232,475 5.1 Biomet, Inc. 200,000 200,000 4.4 First Data Corporation 200,000 200,000 4.4 Capmark Financial Group Inc. 137,321 148,500 3.2 KION Group GmbH. 112,824 135,029 3.0 U.S. Foodservice, Inc. 100,000 100,000 2.2 PagesJaunes Groupe S.A. 235,201 74,314 1.6 ProSiebenSat.1 Media AG 198,885 47,232 1.0 2,635,583 2,506,347 54.9 Negotiated equity investments: B Sun Microsystems, Inc. convertible senior notes. 701,164 574,000 12.6 Orient Corporation convertible preferred stock. 169,706 196,780 4.3 Aero Technical Support & Services S.à r.l. 121,712 81,341 1.8 992,582 852,121 18.7

Private equity funds: C KKR 2006 Fund L.P. 1,104,954 1,159,029 25.3 KKR European Fund, Limited Partnership 202,115 186,219 4.1 KKR Millennium Fund L.P. 199,278 182,882 4.0 KKR European Fund II, Limited Partnership 95,940 86,358 1.9 KKR Asian Fund L.P. 40,188 43,834 1.0 KKR European Fund III, Limited Partnership 8,977 8,618 0.2 1,651,452 1,666,940 36.5

Non-private equity funds –

Investments by KKR Strategic Capital Institutional Fund, Ltd. D 196,093 173,953 3.9 $5,686,347 $5,369,432 117.7%

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED), CONTINUED (Amounts in thousands, except percentage amounts)

June 30, 2008 Fair Value as a Fair Percentage Investment Cost Value of Net Assets

INVESTMENTS BY GEOGRAPHY : North America $ 3,739,474 $ 3,754,707 82.3% 1,643,757 1,266,671 27.8 Asia Pacific 303,116 348,054 7.6 $ 5,686,347 $ 5,369,432 117.7%

INVESTMENTS BY INDUSTRY : Health Care $ 1,083,373 $ 1,133,065 24.8% Financial Services 972,630 1,004,830 22.0 Technology 1,109,353 965,849 21.2 Retail 649,362 625,624 13.7 Media/Telecom 932,049 593,054 13.0 Energy 391,725 527,744 11.6 Industrial 448,059 417,582 9.2 Consumer Products 80,625 72,682 1.6 Chemicals 19,171 29,002 0.6 $ 5,686,347 $ 5,369,432 117.7%

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED SCHEDULES OF SECURITIES SOLD, NOT YET PURCHASED (UNAUDITED) (Amounts in thousands)

June 30, 2008 December 31, 2007 Geography/Instrument Type/Industry Fair Value Proceeds Fair Value Proceeds North America – Public equities, common stock: Financial Services $ 3,945 $ 4,682 $ — $ —

CONSOLIDATED SCHEDULES OF OPTIONS WRITTEN (UNAUDITED) (Amounts in thousands)

June 30, 2008 December 31, 2007 Geography/Instrument Type/Industry Fair Value Proceeds Fair Value Proceeds North America – Public equities, common stock: Energy $ 459 $ 235 $ 5,265 $ 7,290 Financial Services 263 240 — — Industrial 194 455 — — Technology 92 205 — — $ 1,008 $ 1,135 $ 5,265 $ 7,290

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Amounts in thousands)

Quarter Ended Six Months Ended June 30, June 30, June 30, June 30,

2008 2007 2008 2007

INVESTMENT INCOME: 10,126 22,027

Interest income $ $ 27,894 $ $ 63,223 Dividend income, net of withholding taxes of $178, $139, $249 and $765, respectively 5,385 16,327 8,756 20,131 Total investment income 15,511 44,221 30,783 83,354

EXPENSES: Management fees 13,331 12,319 26,738 19,457 Incentive fees — 884 — 1,776 Interest expense 17,784 5,711 37,424 9,606 Dividend expense 322 — 896 — General and administrative expenses 1,270 1,210 2,611 1,926 Total expenses 32,707 20,124 67,669 32,765

NET INVESTMENT INCOME (LOSS) (17,196) 24,097 (36,886) 50,589

REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN

CURRENCY: Net realized gain (loss), net of withholding tax (benefit) of $(37), $488, $(37) and

$977, respectively (42,600) 5,104 (38,602) 16,638 Net change in unrealized appreciation (depreciation) (98,922) 122,581 (351,265) 243,188

Net gain (loss) on investments and foreign currency transactions (141,522) 127,685 (389,867) 259,826

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (158,718) $ 151,782 $ (426,753) $ 310,415

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (Amounts in thousands)

General Limited

Partner Partner Total

NET ASSETS—DECEMBER 31, 2006 $10,454 $5,035,945 $5,046,399

DECREASE IN NET ASSETS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2007: Net investment income 150 25,833 25,983 Net realized gain on investments and foreign currency transactions 236 113,196 113,432 Net change in unrealized depreciation on investments and foreign currency transactions (283) (136,359) (136,642) Net increase in net assets resulting from operations 103 2,670 2,773

Fair value of distributions. (112) (54,082) (54,194) DECREASE IN NET ASSETS (9) (51,412) (51,421)

NET ASSETS—DECEMBER 31, 2007 10,445 4,984,533 4,994,978

DECREASE IN NET ASSETS FROM OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2008: Net investment loss (23) (36,863) (36,886) Net realized loss on investments and foreign currency transactions (81) (38,521) (38,602) Net change in unrealized depreciation on investments and foreign currency transactions (728) (350,537) (351,265) Net decrease in net assets resulting from operations (832) (425,921) (426,753)

Fair value of distributions. (10) (4,990) (5,000) DECREASE IN NET ASSETS (842) (430,911) (431,753)

NET ASSETS—JUNE 30, 2008 $ 9,603 $4,553,622 $4,563,225

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Amounts in thousands)

Six Months Ended Six Months Ended

June 30, 2008 June 30, 2007 CASH FLOWS FROM OPERATING ACTIVITIES: Net increase (decrease) in net assets resulting from operations $ (426,753) $ 310,415 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to cash

and cash equivalents provided by (used in) operating activities: Amortization of deferred financing costs 435 73 Net realized loss (gain) 38,602 (16,638) Net change in unrealized depreciation (appreciation) on investments 302,009 (252,417) Increase in unrealized loss on foreign currency exchange contracts and interest rate swap 49,256 9,229 Changes in operating assets and liabilities: Purchase of opportunistic investments (61,601) (582,551) Purchase of securities to settle short sales (188,291) — Purchase of options (4,781) — Purchase of co-investments in portfolio companies of private equity funds — (490,639) Purchase of negotiated equity investments — (520,870) Purchase of investments by private equity funds (167,060) (155,444) Purchase of investments by KKR Strategic Capital Institutional Fund, Ltd. (7,549) (116,894) Proceeds from sale of opportunistic investments 331,293 70,987 Proceeds from securities sold short, not yet purchased 195,324 — Proceeds from options written 2,109 — Proceeds from sale of investments by private equity funds 321,788 31,758 Proceeds from sale of investments by KKR Strategic Capital Institutional Fund, Ltd. 94 14,938 Decrease in cash and cash equivalents held by a non-private equity fund 952 — Decrease in time deposit — 650,000 Increase in due from affiliate of a non-private equity fund (814) — Decrease in other assets 866 18,208 Increase in restricted cash (31,529) (12,708) Increase in accrued liabilities 4,713 11,571 Increase (decrease) in due to affiliates (562) 2,327 Decrease in other liabilities (66) (18,054) Net cash flows provided by (used in) operating activities 358,435 (1,046,709)

KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED (Amounts in thousands)

Six Months Ended June 30, 2008 Six Months Ended June 30, 2007 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on borrowings under the revolving credit agreement (401,237) — Distributions to partners (5,000) (2,000) Net cash flows used in financing activities (406,237) (2,000)

NET DECREASE IN CASH AND CASH EQUIVALENTS (47,802) (1,048,709) CASH AND CASH EQUIVALENTS—Beginning of period 255,415 2,139,621 CASH AND CASH EQUIVALENTS—End of period $ 207,613 $ 1,090,912

SUPPLEMENTAL CASH FLOW INFORMATION: Interest paid $ 32,043 $ —

NON-CASH FINANCING ACTIVITIES: Increase in long-term debt related to Sun financing $ — $ 350,000

Contacts

Investor: KKR KPE LLC Katherine Becher, +1-212-659-2026 Investor Relations Manager or Media: In the U.S.: Kekst and Company Mark Semer, +1-212-521-4800 or In Europe: Finsbury Simon Moyse, +44.207.251.3801