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LONDON (June 13, 2008) - Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, today announced that it and its affiliates have signed a definitive purchase agreement to acquire Freightliner Group, a leading UK rail logistics company.  Freightliner was privatized from British Rail in 1996 via a management buyout, which had backing from the majority shareholders prior to the acquisition, 3i Group and Electra Partners LLP.

Freightliner is the UK’s largest inland transporter of deep-sea maritime containers. It serves all of the UK’s principal ports, moving customer containers on the first or last leg of a global voyage. In addition, Freightliner operates rail freight services across the UK, carrying coal, building materials, cement and petroleum, and also provides other infrastructure services for Network Rail, the UK rail infrastructure operator. The company is also committed to a strategy of international expansion, and is already operating services in Poland and is developing services in other countries.

With its strong focus on efficiency and reliability, Freightliner has grown its market share within each of the businesses in which it operates. With a strong platform for international growth, it represents an attractive and diversified investment opportunity with stable returns, and has excellent potential for capital growth.  The acquisition is Arcapita’s first investment in rail logistics and brings to over $23 billion the total value of Arcapita’s transactions to date.

Arcapita sourced and executed the Freightliner transaction out of its London offices. Commenting on the transaction, Qaisar M. Zaman, head of Arcapita’s European asset-based business, said “We believe that the growth opportunity for rail, as a critical component of national transport strategies, is very promising.  Freightliner has already built a leading market position in the UK, and we are confident that the management team has the experience and track record to replicate this success, as they continue to roll-out the group’s strategy for international expansion.”

Eddie Fitzsimons, the Chief Executive Officer of Freightliner said “We are very much looking forward to working with Arcapita in continuing to develop our current and new businesses.  To date, Freightliner has been successful in a competitive market place, with a well defined strategy for growth and investment. We have had very supportive partners since privatization, enabling the business to grow into the market leader it is today and we remain optimistic about the next stage in the company’s development.”

The transaction is expected to close by the end of August and is subject to regulatory approvals and other customary closing conditions.  Arcapita was advised by RBC Capital Markets, who have also provided financing for the acquisition.  CMS Cameron McKenna LLP acted as legal advisor to Arcapita in the acquisition.

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