Investment Portfolio

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Lehman Brothers Merchant Banking Partners III L.P., with over $1.2 billion in committed capital, invested in the following companies:

Portfolio Companies   Business Description
Antero Resources Corporation
www.anteroresources.com
  A startup exploration and production company formed for the purpose of acquiring, exploring for, and developing natural gas in the Rocky Mountain and mid-continental areas of the U.S.
Phoenix Brands LLC   A distributor and marketer of home care consumer product brands: Sunlight dish detergent, Niagara ironing aid products, Rit dye, Final Touch fabric softener, and a portfolio of branded heavy duty laundry detergents including Fab, Dynamo, Ajax, Arctic Power, ABC, Cold Power and Fresh Start.
Industria de Turbo Propulsores, S.A.
www.itp.es
  Leading European Tier-II supplier of aircraft engine components and subassemblies, as well as engine repair and overhaul services, for both military and civil aircraft.
Enduring Resources, LLC   A startup exploration and production company formed for the purpose of acquiring, exploring for, and developing natural gas in the Rocky Mountain and mid-continental areas of the U.S.
Spumador Group
www.spumador.com
  An Italian bottler and distributor of branded and private label soft drinks and mineral water.
Evergreen Copyright Acquisitions, LLC   A music publishing company formed to aggregate and optimize small- to medium-sized catalogs of music copyrights.
Flagstone Reinsurance Holdings Ltd.
www.flagstonere.bm
  A Class 4 Bermuda reinsurer formed to underwrite selected lines of property and catastrophe reinsurance that are currently experiencing dislocation as a result of the losses caused by Hurricanes Katrina, Rita and Wilma.
Patentes Talgo S.A.
www.talgo.com
  A leading train manufacturer in Spain, specializing in the design and manufacturing of high-speed (350km/h) and intercity trains (250km/h), and provider of maintenance, repair and overhaul services for those trains.
MW Brands   A vertically integrated manufacturer and distributor of ambient seafood, principally canned tuna. It operates the leading French and U.K. brands, including Petit Navire and John West, as well as four production facilities located in Seychelles, Ghana, Portugal and France.
The Cross Group
www.thecrossgroup.com
  An offshore oil and gas services provider involved in pipeline maintenance and repair, hurricane recovery, and routine platform inspection operations in the Gulf of Mexico.
Superior Highwall Miners
www.shm.net
  A Beckley, West Virginia-based manufacturer of highwall coal mining machines as well as a provider of aftermarket parts and services to its customers.
Delos Insurance Company
www.delosinsurance.com
  A New York-based underwriter of niche-oriented, regionally specific personal and commercial specialty insurance.
Mediterranean Resources   An Austin, Texas-based oil and gas company with assets in mainland Italy, Sicily and the U.S.
McCarthy & Stone
www.mccarthyandstone.co.uk
  The U.K.'s leading builder of private sheltered retirement housing, which developed more than 30,000 retirement housing units with a market share of over 60%.

In addition, the Merchant Banking Group currently holds investments in the following companies:

Portfolio Companies   Business Description
Blount International, Inc.
www.blount.com
   A diversified manufacturer, operating in two industry segments: Outdoor Products and Industrial and Power Equipment.

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