The Carlyle Group to Acquire ARINC Incorporated

ARINC Well Positioned For Continued Growth
& Expansion Under New Ownership

July 5, 2007

Washington, DC and Annapolis, MD—Global private equity firm The Carlyle Group announced today that it has reached a definitive agreement to acquire ARINC Incorporated from its current shareholders, including several prominent commercial airlines.  The transaction is expected to close in the third quarter of 2007 subject to regulatory approval and other customary closing conditions.  Financial details were not disclosed.

ARINC is a global provider of transportation communications and systems engineering.  The company develops and operates communications and information processing systems and provides systems engineering and integration solutions to five key industries:  airports, aviation, defense, government, and surface transportation.  Headquartered in Annapolis, Maryland, ARINC has approximately 3300 employees in 100 offices worldwide, generating annual revenues in excess of $900 million.

"This is an important step in the evolution of ARINC," said John M. Belcher, Chairman and CEO of ARINC Incorporated.  "We have worked very hard to find a partner who shares our vision, and believe that Carlyle's international presence, financial resources, and expertise in the aerospace, defense, and communications sectors will be instrumental in the continued expansion of our business.  With the support of our dedicated and talented employees, ARINC is committed to maintaining the highest levels of customer service and industry leadership." 

Peter Clare, Carlyle Managing Director and Head of the Global Aerospace and Defense sector team, said, "We have long admired ARINC's leadership position and impressive track record of growth.  We believe that ARINC is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments."

Ian Fujiyama, the Carlyle Managing Director who led the transaction, added, "John and his team have successfully leveraged ARINC's unique domain expertise and technology leadership to offer innovative new solutions to its customers.  We look forward to partnering with ARINC in continuing to build on its record of success."

ARINC Incorporated
Founded to provide reliable and efficient radio communications for commercial airlines, ARINC Incorporated is a world leader in transportation communications and systems engineering.  The company develops and operates communications and information processing systems and provides systems engineering and integration solutions to five key industries: airports, aviation, defense, government and surface transportation.  ARINC is headquartered in Annapolis, Maryland, with regional offices in London and Singapore, with over 3,300 employees worldwide.  ARINC is ISO 9001:2000 certified.

The Carlyle Group
The Carlyle Group is a global private equity firm with $58.5 billion under management.  Carlyle invests in buyouts, venture and growth capital, real estate and leveraged finance in Asia, Europe and North America, focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, healthcare, industrial, infrastructure, technology & business services and telecommunications & media.  Since 1987, the firm has invested $28.3 billion of equity in 636 transactions for a total purchase price of $132.0 billion.  The Carlyle Group employs more than 800 people in 18 countries.  In the aggregate, Carlyle portfolio companies have more than $87 billion in revenue and employ more than 286,000 people around the world.    www.carlyle.com

Release: 07-135

Brand Management & Communications
corpcomm@arinc.com
410-266-4652