Temp Holdings and Intelligence to Partner Following Share Purchase from KKR

  Temp Holdings and Intelligence to PartnerFollowing Share Purchase from KKR

            Creates a new leader in HR services in Japan and Asia

Business Wire

TOKYO & HONG KONG -- March 26, 2013

Temp Holdings, Co. Ltd. (“Temp Holdings”) and Kohlberg Kravis Roberts & Co.
L.P. (together with its affiliates, "KKR") today announced the signing of a
definitive agreement under which Temp Holdings will acquire all outstanding
shares of Intelligence Holdings, Ltd. (“Intelligence”) from KKR and the
management and employees of Intelligence, for an enterprise value^1 of JPY68.0
billion (US$716 million), representing an equity value of approximately JPY
51.0 billion (US$537million).

Temp Holdings is one of Japan’s largest comprehensive recruitment services
companies and has actively expanded its business in Asia. Intelligence is also
a leading comprehensive recruitment services provider in Japan, operating
multiple business lines including permanent job placement, job advertising
media, temporary staffing and outsourcing. Together, Temp Holdings and
Intelligence can meet evolving market needs and provide companies and
job-seekers with a comprehensive range of high-quality HR services.

Ms. Yoshiko Shinohara, Chairman, President and Representative Director of Temp
Holdings, said, “Under the leadership of CEO Takahashi, Intelligence has grown
rapidly as a comprehensive recruitment services provider. In particular, by
fully utilizing the skills and expertise of KKR over the past few years,
Intelligence has achieved a large improvement in the performance and
profitability of each of its businesses and significantly strengthened its
position in the recruitment services business. We believe labor flexibility
and mobility will be an important part of improving the competitiveness of
Japanese companies and through this partnership we aim to support our
customers’ sustained growth by stimulating inter-industry labor mobility,
provide stable employment opportunities to jobseekers, and thereby contribute
to job creation and better serve our customers.”

Intelligence President and CEO, Mr. Hirotoshi Takahashi said, “By joining
together with Temp Holdings we are creating a group that aims to be a new
leader in the HR solutions business in Japan and Asia. We are honored to
become a part of that team.” Mr. Takahashi added, “Our partnership with KKR
has been a great learning experience for me and for staff at all levels of
Intelligence. Together, we have achieved real operational improvement and
sustained growth. KKR and KKR Capstone teams provided valuable ideas,
strategic direction and operational resources that have fundamentally enhanced
our management effectiveness and operational efficiency. We are now much
better positioned to utilize that experience to develop further, in
partnership with Temp Holdings.”

Mr. Shusaku Minoda, Managing Director and CEO of KKR Japan, said, “Over the
last three years we have built a highly successful partnership with
Takahashi-san and his team at Intelligence. Thanks to their incredible energy
and vision, Intelligence has achieved very strong and sustained growth and
profitability. The success of this partnership provides a firm foundation for
our plans to further develop our business in Japan.”

^1 Enterprise value is calculated as equity value plus net debt.
Note: The US$ figures used in this release are approximate figures based on an
exchange rate of 1 US$ = JPY 95.

During its three-year partnership with KKR, Intelligence has increased its
revenues by 45%, EBITDA by 170%, and operating profit (EBIT) by 431%. The
total number of employees at Intelligence also increased from 4,370 to 5,981
(by 37%).

The combination of Temp Holdings and Intelligence will have revenues of more
than JPY 320 billion (US$3,370 million), EBITDA of more than JPY 21 billion
(US$220 million)^2, employ more than 10,000 people, and create an
industry-leading franchise that can capture expanding opportunities in the
Japan and Asia HR services markets. The market for HR services in Japan has
grown significantly over the last twenty-five years as traditional employment
patterns evolved and developed, and companies restructure and expand globally.
At the same time, as jobseekers’ awareness of opportunities expands and their
career planning needs diversify, the number of people changing jobs has
steadily increased. These changes have led to growing demand for a wide range
of professional HR services which Temp Holdings and Intelligence together will
best be able to meet.

The share transfer transaction is subject to customary closing conditions and
approval by the Japan Fair Trade Committee and is expected to be completed in
late April 2013, or on a date to be agreed by Temp Holdings and KKR.

^2 Based on the combined figures for Temp Holdings and Intelligence for the 12
months to December 2012.

Forward-Looking Statements

This release contains certain forward-looking statements. Forward-looking
statements relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions concerning
matters that are not historical facts. Without limiting the foregoing,
statements regarding the acquisition of Intelligence and the resulting
combined business may constitute forward-looking statements. Such statements
are subject to the risk that the terms of such transaction may be modified,
the transaction may not be completed at all or the benefits and synergies from
such transactions are not realized. The forward-looking statements are based
on the beliefs, assumptions and expectations of the parties referenced herein,
taking into account all information currently available to them. These
beliefs, assumptions and expectations can change as a result of many possible
events or factors, not all of which are known to these parties or are within
their control. None of the parties undertakes any obligation to update any
forward-looking statements to reflect circumstances or events that occur after
the date on which such statements were made except as required by law.

About Temp Holdings

Since the establishment of Tempstaff Co., Ltd. in 1973, the firm has developed
into an integrated HR services provider supporting contingent labor,
placement, outsourcing and outplacement support. The group holding company
Temp Holdings Co., Ltd. aims to be a leading HR service provider in Asia and
was established in October 2008 and listed on the 1st Section of the Tokyo
Stock Exchange (Stock code: 2181). Temp Holdings (President: Yoshiko
Shinohara) is headquartered in Shibuya-ku, Tokyo and in the fiscal year ended
March 2012 sales were JPY 233,195 million. Please visit
www.temp-holdings.co.jp/english for additional information on Temp Holdings.

About Intelligence

Intelligence was established in 1989 and is a leading comprehensive HR
services company, providing services including online and classified job
advertisement services (under the brand of “an”), permanent placement services
(under the brand of “DODA”), temporary staffing services, IT and business
process outsourcing services, public solutions services, and IT system
development services in Japan, as well as permanent placement services in
China and South East Asia. Intelligence was formerly a subsidiary of Usen
Corporation and was acquired by KKR in July 2010. Since then, in partnership
with KKR and KKR Capstone, Intelligence has implemented wide-ranging
initiatives to enhance management effectiveness and operational efficiency.
Please visit http://www.inte.co.jp/en/ for additional information on

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading
global investment firm with US$75.5 billion in assets under management as of
December 31, 2012. With offices around the world, KKR manages assets through a
variety of investment funds and accounts covering multiple asset classes. KKR
Japan, established in 2006, is an integral part of KKR’s Asia Pacific team,
which consists of more than 90 executives in seven offices across the region.
In 2010, KKR completed an investment in a leading Japanese recruitment
services firm Intelligence Ltd. from Usen Corporation. In 2011, KKR and Itochu
Corporation were co-investors in Samson Investment Company, one of the largest
private exploration and production companies in the United States. Also that
year, KKR, Google and Recurrent Energy, a U.S. subsidiary of Sharp
Corporation, formed a venture to invest in solar projects in the US. KKR has
pan-Asian pool of capital of more than US$5 billion invested in 28 companies
across the region. KKR’s portfolio is mixed by country, industry and sector
and includes both minority and control investments. KKR seeks to create value
by bringing operational expertise to its portfolio companies and through
active oversight and monitoring of its investments. KKR Capstone is a team of
more than 60 operating executives across North America, Europe, and Asia who
work exclusively with KKR portfolio companies to drive operational
improvements. KKR Capstone has operational consultants that are dedicated to
delivering management expertise in functional areas such as pricing,
organizational design, sales force effectiveness, and operational efficiency.
KKR & Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR),
and “KKR,” as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment vehicles, as
appropriate. For additional information on KKR, please visit KKR's website at


Media contacts:
KKR Asia Pacific
Steven Okun
For KKR Asia Pacific
Hill+Knowlton Strategies Asia
Nicholas Worley / Samantha Wang
+852 2894 6313
For Temp Holdings, Intelligence, and KKR Japan
Ashton Consulting
John Sunley / Jillian Palash
+81 3 5425 7220
KKR New York
Kristi Huller
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