Sep 25, 2003

Blackstone CDO Funds Reach $1 Billion

New York: September 25, 2003 – The Blackstone Group announced today the closing of its second Collateralized Debt Obligation investment vehicle bringing the total CDOs under management to $1 billion. The Group’s first vehicle, Hanover Square CLO Ltd., closed in November 2002 at $600 million.

Union Square CDO Ltd., which will be managed by Blackstone Debt Advisors, a unit within Blackstone’s Corporate Debt Group, and headed by Dean Criares, is a $400 million investment pool that will principally invest in senior secured loans issued by the highest quality companies in the leveraged loan market.

The securities offered by Union Square have not been and will not be registered under the Securities Act of 1933, as amended, and will not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities.

About The Blackstone Group

The Blackstone Group, a private investment and advisory firm with offices in New York, London and Hamburg, was founded in 1985. Since inception the firm has raised over $26 billion for alternative asset investing. In addition to its Corporate Debt Group, which includes the CDO and Mezzanine funds, Blackstone core businesses include Private Equity Investing, Real Estate Investing, Liquid Alternative Asset Management, Mergers & Acquisitions Advisory and Restructuring & Reorganization Advisory.