KPS Capital Partners' Portfolio Company, Hephaestus Holdings, Completes Acquisition of Substantially All of the Assets of FormTech Industries

KPS Capital Partners' Portfolio Company, Hephaestus Holdings, Completes
Acquisition of Substantially All of the Assets of FormTech Industries

NEW YORK, Oct. 5 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") today
announced that its portfolio company, Hephaestus Holdings, Inc. ("HHI"), has
completed the acquisition of substantially all the assets of FormTech
Industries, LLC ("FormTech") through an indirect, wholly-owned subsidiary. HHI
acquired FormTech free and clear of substantially all liens, claims,
encumbrances and interests through an auction conducted as part of a sale
process under Section 363 of the United States Bankruptcy Code. The U.S.
Bankruptcy Court for the District of Delaware approved the transaction on
October 1, 2009.

With this acquisition, HHI becomes the largest independent manufacturer of
forged parts and the leading manufacturer of wheel bearings for the North
American automotive industry. HHI acquired substantially all of the forging
assets of FormTech located in Royal Oak, Fraser, Detroit and Troy, Michigan;
Minerva, Ohio; and Tonawanda, New York.

Created by KPS in September 2005, HHI was built through a series of
acquisitions of formerly underperforming businesses, or assets operating under
Chapter 11 of the U.S. Bankruptcy Code, including Jernberg Forge, Iron
Mountain Forge, Impact Forge, Omni Forge and Net Forge. HHI also created a new
subsidiary, Kyklos Bearing International, Inc., to acquire the North American
wheel bearings business of Delphi Corporation in April 2008. HHI now operates
twelve manufacturing facilities, located in four states, and employs over
2,000 people.

Michael G. Psaros, a Managing Partner of KPS, said, "KPS created HHI, in
partnership with George Thanopoulos, to consolidate the North American
automotive forging industry. That objective is now accomplished. We
congratulate HHI, its management team and employees for achieving financial
success, significant customer and product diversification, and continued
growth throughout the recent historic collapse of the automotive industry.
HHI's management team has now successfully completed a series of extremely
ambitious turnarounds in a tough, globally competitive industry, positioning
the company in every respect to capitalize on the eventual industry recovery.
KPS looks forward to funding HHI's expansion into Europe and Asia in the
immediate future, leveraging the company's North American asset base, customer
relationships, and industry leading metalworking technology and expertise,
while remaining open to further opportunistic acquisitions in North America."

George Thanopoulos, Chief Executive Officer of HHI, said, "With the
acquisition of FormTech, HHI now offers the broadest array of forging
processes in the industry and has the largest collection of horizontal hot
formers worldwide. The success of HHI is the result of the enormous effort
expended by our management team and employees. By focusing on product quality,
on-time delivery, best-in-class operating excellence, world-class technology
and capital investment, we have created North America's market leader. We are
deeply grateful to our customers and suppliers for their critical
contributions."

The support of the United Auto Workers and United Steelworkers, which
represent the vast majority of FormTech's hourly workforce, was critical to
the success of the acquisition. The Unions ratified new transformative
collective bargaining agreements with HHI prior to completion of the
transaction.

HHI was represented by Proskauer Rose LLP, Jenner & Block LLP, and Spilman
Thomas & Battle, PLLC.

About KPS Capital Partners, LP
KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, a
family of private equity funds with over $2.6 billion of committed capital
focused on constructive investing in restructurings, turnarounds and other
special situations. KPS has created new companies to purchase operating assets
out of bankruptcy; established stand-alone entities to operate divested
assets; and recapitalized highly leveraged public and private companies. The
KPS investment strategy targets companies with strong franchises that are
experiencing operating and financial problems. KPS invests its capital
concurrently with a turnaround plan predicated on cost reduction, capital
investment and capital availability. Typically, the KPS turnaround plan is
accompanied by a financial restructuring of the company's liabilities. The KPS
investment strategy and portfolio companies are described in detail at the
firm's website: www.kpsfund.com.

About HHI Holdings, LLC
HHI Holdings, LLC ("HHI"), through its Jernberg Holdings, Inc., Impact Forge
Group, Inc., HHI FormTech, LLC, and Kyklos Bearing International, Inc. ("KBI")
subsidiaries, is the largest independent manufacturer of forged parts and a
leading manufacturer of wheel bearings for the North American automotive
industry. Jernberg Holdings, Inc., Impact Forge Group, Inc., and HHI FormTech
LLC, through their respective subsidiaries, manufacturer highly engineered
symmetrical and asymmetrical forged parts for various power train and
wheel-end applications. KBI is the leading producer of Gen III wheel bearings
in North America. HHI is owned by KPS Capital Partners, LP and MC Capital
Inc., a subsidiary of Mitsubishi Corp. Employing over 2,000 employees, HHI
operates twelve manufacturing facilities located in the Illinois, Indiana,
Michigan, and Ohio. For more information, please visit www.hhiforge.com and
www.kbibearing.com.

SOURCE KPS Capital Partners, LP

Business Inquiries, KPS, +1-212-338-5100; or Media Relations, Mark Semer or
Joseph Kuo, +1-212-521-4800, both for KPS Capital Partners, LP