AP Alternative Assets Releases Its Financial Results Relating to the Quarter Ended...

AP Alternative Assets Releases Its Financial Results Relating to the Quarter Ended March 31, 2008

GUERNSEY, Channel Islands--(Business Wire)--
AP Alternative Assets, L.P. ("AAA", Euronext Amsterdam: AAA) today
released its financial results for the quarter ended March 31, 2008.

AAA invests its capital through, and is the sole limited partner
of, AAA Investments, L.P., which is referred to as the Investment
Partnership. At March 31, 2008, the Investment Partnership's net asset
value was allocated as follows:

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% of Net
Asset Value
-----------
Private Equity co-investments 53%
Apollo Strategic Value Fund 29
Apollo Investment Europe 16
Apollo Asia Opportunity Fund 12
Apollo European Principal Finance Fund 8
Temporary investments and other assets 3
Borrowings under credit facility and other liabilities -21
-----------
100%
===========
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Overview

As of March 31, 2008, the net asset value of AAA approximated
$2,004 million, or $20.73 per common unit. This compares to $2,131
million, or $22.06 per common unit, as of December 31, 2007.

Josh Harris, a managing partner and President of Apollo Global
Management, commented, "The past year has tested the core principals
of many organizations. The key as we have learned from past cycles is
to stay focused on good fundamental credit quality while taking
advantage of a combination of depressed market prices and favorable
terms from motivated sellers. AAA is able to take advantage of this
dynamic on both sides of the equation through private equity and
credit oriented capital markets investments."

Results of Operations

Operating results for AAA for the three months ended March 31,
2008 and 2007, were highlighted by the following:

-- The net decrease in net assets resulting from operations was
approximately $(127.8) million, or $(1.33) per common unit,
for the three months ended March 31, 2008, compared to an
increase of $89.2 million, or $0.92 per common unit, for the
three months ended March 31, 2007

-- Net change in unrealized appreciation of AAA's limited partner
interests in the Investment Partnership was approximately
$(118.4) million and $74.7 million, respectively, resulting
from the change in net assets of the Investment Partnership.
The decrease in unrealized appreciation on investments in AAA
Investments, L.P. of $193.1 million is due to the performance
of the underlying portfolio companies and capital markets
investments.

-- Investment income allocated from the Investment Partnership
was $1.1 million for the three months ended March 31, 2008,
which primarily represented interest income from cash
management activities. For the three months ended March 31,
2007, investment income allocated from the Investment
Partnership was $15.7 million, which represented interest
income from cash management activities, dividend income from
portfolio investments and realized gains from sales. The
decrease in net investment income of $14.6 million is
primarily due to less cash on hand for short-term investing
and non-recurring dividends from portfolio companies in the
first quarter of 2007.

-- Investment expense and general and administrative expenses
were $10.4 million and $1.1 million for the three months ended
March 31, 2008 and 2007, repsectively, which primarily
included direct expenses and allocated expenses from the
Investment Partnership for professional services, management
fees, certain deal costs and other general expenses, as well
as expenses of our Managing General Partner's board of
directors and other administrative costs. The increase in
investment expense and general and administrative expenses of
$9.3 million is primarily due to management fees, which were
incurred beginning in the second quarter of 2007 once
applicable earnings and other hurdles were met, expenses
related to the credit facility, which began in the second
quarter of 2007, and increased professional fees.

Operating results for the Investment Partnership for the three
months ended March 31, 2008 and 2007, were highlighted by the
following:

-- The net (decrease) increase in net assets resulting from
operations was approximately $(136.9) million and $102.5 for
the three months ended March 31, 2008 and 2007, respectively.

-- Total change in net unrealized appreciation, resulting from
investments recorded at fair value, for the three months ended
March 31, 2008 and 2007, was $(130.0) million and $86.8
million, respectively. The key drivers of the results in the
first quarter of 2008 are as follows:

-- Private equity co-investments had a decrease in unrealized
appreciation of $59.1 million for the three months ended
March 31, 2008, primarily due to a change in fair value of
several of our portfolio companies, especially those in
the real estate and retail sectors.

-- Investment in Strategic Value Fund had a decrease in net
unrealized appreciation of $24.8 million for the three
months ended March 31, 2008. This was primarily due to the
ongoing turbulence in the credit and equity markets. In
particular, the losses can be attributed to weakness in
the consumer and technology sectors, offset partially by
the fund's industrial positions and short exposure in the
financial sector.

-- Investment in Apollo Investment Europe had a decrease in
net unrealized appreciation of $60.5 million during the
first quarter. The Investment Partnership's investment in
Apollo Investment Europe was negatively impacted by the
continued downward market movements given the funds
long-only strategy and use of leverage. The decrease in
unrealized appreciation was partially offset by unrealized
appreciation of approximately $24.6 million as a result of
foreign currency movements on our investment.

-- Investment income was $1.1 million for the three months ended
March 31, 2008, which primarily represented interest income
from cash management activities. For the three months ended
March 31, 2007, investment income was $16.1 million, which
represented interest income from cash management activities,
dividend income from portfolio investments and realized gains
from sales. The decrease in investment income is primarily due
to less cash on hand for short-term investing and
non-recurring dividends from portfolio companies in the first
quarter of 2007.

-- Expenses approximated $8.0 million and $0.5 million for the
three months ended March 31, 2008 and 2007, respectively. The
increase in investment expense and general and administrative
expenses of $7.5 million is primarily due to management fees,
which were incurred beginning in the second quarter of 2007
once applicable earnings and other hurdles were met, and
expenses related to the credit facility, which began in the
second quarter of 2007.

Investments

As of March 31, 2008, AAA's investments consist of $2,007.8
million invested in AAA Investments, L.P.

The underlying portfolio of AAA Investments, L.P. consists of
temporary investments of $52.7 million and portfolio investments
approximating $2,392.4 million as follows:

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Fair Value at
March 31,
2008
-------------
Capital Markets Funds:
Apollo Strategic Value Fund $595.8
Apollo Investment Europe 323.8
Apollo Asia Opportunity Fund 241.5
Apollo European Principal Finance Fund 157.0

Private Equity Co-investments:
Harrah's Entertainment Inc. 179.5
CEVA Logistics 128.3
Prestige Cruise Holdings 105.7
All others 660.8
-------------
Total $2,392.4
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In the first quarter of 2008, AAA borrowed $385 million under its
revolving credit facility to partially fund new investments. In the
first quarter of 2008, the Investment Partnership made new investments
of $98.9 million, and $165.6 million in NCL Corporation and Harrah's
Entertainment Inc., respectively. In addition, the Investment
Partnership made follow on investments of approximately $60.0 million
and $119.0 million in Prestige Cruise Holdings (formerly Oceania
Cruise Lines) and the debt investment vehicles, respectively.

Tax Distribution

The Board of Directors of AAA's general partner declared a
distribution of $0.46 per unit payable on or about June 26, 2008 to
unitholders of record immediately after the closing of business in
Amsterdam on June 11, 2008 with an ex-dividend date of June 9, 2008.
Because the distribution was declared subsequent to March 31, 2008,
the aggregate distribution payable of $44.5 million is not yet
reflected in AAA's net asset value as of March 31, 2008.

Information for Investors - Teleconference and Webcast

The company will discuss its financial results during a conference
call on Thursday, May 29, 2008, at 6 p.m. CEST (Amsterdam) / 5 p.m.
BST (London) / 12 p.m. EDT (New York). All interested parties are
welcome to participate. You can access this call by dialing 20 717
6857 within The Netherlands or 31 20 717 6857 outside of The
Netherlands. Please dial-in approximately 5 to 10 minutes prior to the
call. When prompted, callers should reference "AAA Earnings". An
archived replay of the conference call will also be available through
June 29, 2008, via the company's website at
www.apolloalternativeassets.com.

About AAA

AP Alternative Assets was established by Apollo and is a
closed-end limited partnership established under the laws of Guernsey.
Apollo is a leading private equity and capital markets investor with
18 years of experience investing across the capital structure of
leveraged companies. AP Alternative Assets is managed by Apollo
Alternative Assets and invests in and co-invests with Apollo's
private-equity and capital-markets investment funds. For more
information about AP Alternative Assets, please visit
www.apolloalternativeassets.com.

Forward-Looking Statements

This press release contains forward-looking statements.
Forward-looking statements involve risks and uncertainties because
they relate to future events and circumstances. Such statements are
based on currently available operating, financial and competitive
information and are subject to various risks and uncertainties that
could cause actual results and developments to differ materially from
the historical experience and expressed or implied expectations of
AAA. Undue reliance should not be placed on such forward-looking
statements. Forward-looking statements speak only as of the date on
which they are made and AAA does not undertake to update its
forward-looking statements unless required by law.

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Financial Schedules Follow
AP ALTERNATIVE ASSETS, L.P.
STATEMENT OF OPERATIONS (UNAUDITED)
(In thousands)
----------------------------------------------------------------------

For the Three Months Ended March 31,
------------------------------------
2008 2007
------------------ -----------------

NET INVESTMENT (LOSS) INCOME
ALLOCATED FROM AAA INVESTMENTS,
L.P.
Interest, dividends and gains
from short-term investments $ 1,190 $ 13,402
Net realized (losses) gains from
investments (96) 2,282
Expenses (7,974) (472)
------------------ -----------------
(6,880) 15,212
EXPENSES - General and
administrative expenses (2,457) (642)
------------------ -----------------

NET INVESTMENT (LOSS) INCOME (9,337) 14,570

NET CHANGE IN UNREALIZED
APPRECIATION OF INVESTMENT IN
AAA INVESTMENTS, L.P. (118,419) 74,674
------------------ -----------------

NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM OPERATIONS $ (127,756) $ 89,244
================== =================
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AP ALTERNATIVE ASSETS, L.P.
STATEMENT OF ASSETS AND LIABILITIES
(In thousands, except per unit amounts)
----------------------------------------------------------------------
As of As of
March 31, 2008 December 31,
(unaudited) 2007
-------------- --------------
ASSETS
Investment in AAA Investments, L.P.
(cost of $1,803,340 and $1,803,110 at
March 31, 2008 and December 31, 2007,
respectively) $ 2,007,778 $ 2,132,847
Other assets 86 1,201
-------------- --------------
TOTAL ASSETS 2,007,864 2,134,048
-------------- --------------

LIABILITIES
Accounts payable and accrued
liabilities 3,734 2,554
Due to Affiliates 162 -
-------------- --------------

NET ASSETS $ 2,003,968 $ 2,131,494
============== ==============

NET ASSETS CONSIST OF:
Partners' capital contribution, net
(96,651,857 and 96,635,722 common
units outstanding at March 31, 2008
and December 31, 2007, respectively) $ 1,824,782 $ 1,824,552
Partners' capital distributions (23,924) (23,924)
Accumulated increase in assets
resulting from operations 203,110 330,866
-------------- --------------

$ 2,003,968 $ 2,131,494
============== ==============

Net asset value per common unit $ 20.73 $ 22.06
============== ==============

Market price $ 12.00 $ 15.00
============== ==============
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AAA INVESTMENTS, L.P.
STATEMENT OF OPERATIONS (UNAUDITED)
(In thousands)

For the Three Months Ended March 31,
-------------------------------------
2008 2007
------------------ ------------------
INVESTMENT INCOME:
Interest, dividends and gains
from short-term investments $ 1,190 $ 13,410
Net realized (losses) gains
from sales (96) 2,699
------------------ ------------------
1,094 16,109
EXPENSES :
Management fees (3,323) -
General and administrative
expenses (4,653) (473)
------------------ ------------------

NET INVESTMENT (LOSS) INCOME (6,882) 15,636

Net change in unrealized
appreciation on investments (130,043) 86,837
------------------ ------------------

NET (DECREASE) INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $(136,925) $102,473
================== ==================
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AAA INVESTMENTS, L.P.
STATEMENT OF ASSETS AND LIABILITIES
(In thousands)
----------------------------------------------------------------------
As of As of
March 31, 2008 December 31,
(unaudited) 2007
-------------- --------------

ASSETS:
Investments:
Co-investments - Apollo Investment
Fund VI and Fund VII at fair value
(cost of $936,943 and $494,830 in
2008 and 2007, respectively) $ 1,074,274 $ 691,258
Investment in Apollo Strategic Value
Offshore Fund, Ltd. at fair value
(cost of $550,000 in 2008 and 2007) 595,766 620,568
Investment in AP Investment Europe
Limited at fair value (cost of
$339,488 in 2008 and 2007) 323,768 384,280
Investment in Apollo Asia Opportunity
Offshore Fund, Ltd. at fair value
(cost of $218,000 in 2008 and 2007) 241,575 239,014
Investment in Apollo European
Principal Fund, L.P. at fair value
(cost of $149,136 and $132,317 in
2008 and 2007, respectively) 157,034 128,501
-------------- --------------
Total Investments 2,392,417 2,063,621

Cash and cash equivalents 52,722 114,735
Other assets 7,333 6,130
Due from affiliates 571 2,359
-------------- --------------
TOTAL ASSETS 2,453,043 2,186,845
-------------- --------------

LIABILITIES:
Borrowings under credit facility 385,000 -
Accounts payable and accrued liabilities 3,081 1,878
Due to affiliates 26,105 9,415
-------------- --------------
NET ASSETS $ 2,038,857 $ 2,175,552
============== ==============

NET ASSETS CONSIST OF:
Partners' capital $ 1,798,344 $ 1,798,114
Accumulated increase in net assets
resulting from operations 240,513 377,438
-------------- --------------

$ 2,038,857 $ 2,175,552
============== ==============
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AP Alternative Assets, L.P.
Meredith M. Aslin, 212-822-0527
maslin@apollolp.com

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