Berkshire Patners News

BERKSHIRE PARTNERS TO ACQUIRE THE WILLIAM CARTER COMPANY

FROM INVESTCORP IN $450 MILLION TRANSACTION

BOSTON, MA, NEW YORK, NY and MORROW, GA -- JULY 16, 2001 -- Berkshire Partners

LLC, the Boston-based private equity investment firm, and Investcorp, the global

investment group, today announced that they have signed a definitive agreement

under which Berkshire will acquire The William Carter Company ("Carter's") from

Investcorp and its clients for approximately $450 million.

Carter's is the nation's largest branded marketer of baby and toddler apparel,

and a leading marketer of young children's apparel. Over its 136 years of

operation, Carter's has become one of the best recognized brand names in the

children's apparel industry. Morrow, Georgia-based Carter's markets its products

under the brand names of CARTER'S and CARTER'S CLASSICS to department stores and

specialty store accounts, and through its 149 retail outlet stores.

The transaction, expected to close in the third quarter of 2001, involves the

continuing leadership of the company's senior management. Upon completion of the

transaction, investment funds established by Berkshire and management will own

all of the company's equity. Berkshire's equity investment will total

approximately $130 million.

"Over the course of our four-and-a-half-year partnership with Investcorp,

Carter's made substantial operating and financial progress and has further

established the CARTER'S family of brands as the most innovative and popular in

the children's apparel sector," said Frederick J. Rowan II, Chairman, Chief

Executive Officer and President of The William Carter Company. "As we look

towards the future, we are excited to begin a new partnership with Berkshire

Partners and benefiting from their experience with branded- and retail-oriented

companies."

Bradley M. Bloom, Managing Director at Berkshire, stated, "Carter's talented

management team and leading brand name...