Booz Allen Hamilton Completes Separation of Core Businesses and Sale of Majority Stake in Government Business to the Carlyle Group
Booz Allen Hamilton finalizes the separation of its U.S. government and global commercial businesses. The firm’s commercial and international businesses are now independent, operating as Booz & Company.

McLean, Virginia, July 31, 2008 – Booz Allen Hamilton Inc. (Booz Allen) announced today that it has completed the previously-announced separation of its U.S. government and global commercial businesses, as well as the sale of a majority stake in the U.S. government consulting business, which will retain the name Booz Allen Hamilton, to The Carlyle Group for $2.54 billion. The firm’s commercial and international businesses are now independent, operating as Booz & Company.

Dr. Ralph W. Shrader, Chairman & Chief Executive Officer of Booz Allen, said, “Completing this separation of our two core businesses is an important milestone in our history. The success of these businesses over many decades and the significant opportunities that lie ahead for both are a tribute to generations of Booz Allen people and clients. Looking ahead, we are excited about Carlyle’s investment and the ability to leverage their experience in our growing U.S. government consulting business, and we look forward to continuing to collaborate with our Booz & Company colleagues on assignments where our joint capabilities benefit clients.”

Peter J. Clare, Carlyle Managing Director and Head of the Global Aerospace, Defense and Government Services sector team, said, “We look forward to supporting Ralph Shrader and his management team as we enter this new and important phase of Booz Allen’s leadership in the government services sector.”

Booz & Company Chief Executive Officer Shumeet Banerji said, “This is an exciting time for us, as an independent company and also as a leader in global management consulting. We look forward to continuing our long history of serving the senior agenda of the world’s leading institutions – and teaming with our legacy partner Booz Allen Hamilton when our combined expertise helps our clients succeed.”

The separation and investment by Carlyle was overwhelmingly approved by Booz Allen Hamilton Inc.’s shareholders.

Booz Allen was advised by Credit Suisse and Latham & Watkins LLP. Carlyle was advised by Debevoise & Plimpton LLP, Banc of America Securities, and Lehman Brothers.

Booz Allen Hamilton

Booz Allen Hamilton has been at the forefront of strategy and technology consulting for more than 90 years. Booz Allen combines a consultant’s unique problem-solving orientation with deep technical knowledge and strong execution to help government agencies, institutions, and infrastructure organizations achieve success in their most critical missions. Providing a broad range of services in strategy, operations, organization and change, information technology, systems engineering, and program management, Booz Allen is committed to delivering results that endure. Booz Allen has 20,000 employees. In 2008, for the fourth consecutive year, Fortune magazine named it one of “The 100 Best Companies to Work For,” and Working Mother magazine has ranked the firm among its “100 Best Companies for Working Mothers” annually since 1999. www.boozallen.com

The Carlyle Group

The Carlyle Group is a global private equity firm with $82.7 billion of assets under management committed to 60 funds as of March 31, 2008. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $46.3 billion of equity in 802 transactions for a total purchase price of $216 billion. The Carlyle Group employs 950 people in 21 countries. In the aggregate, Carlyle portfolio companies have more than $109 billion in revenue and employ more than 415,000 people around the world. www.carlyle.com

Booz & Company

Booz & Company is a leading global management consulting firm, helping the world’s top businesses, government ministries, and organizations. Founder Edwin Booz defined the profession when he established the first management consulting firm in 1914. Today, with more than 3,300 people in 57 offices around the world, the firm brings foresight and knowledge, deep functional expertise, and a practical approach to building capabilities and delivering real impact. Booz & Company works closely with clients to create and deliver essential advantage. For the firm’s management magazine strategy+business visit www.strategy-business.com. Visit www.strategyand.pwc.com to learn more about Booz & Company.

Contacts

Booz Allen Hamilton: Marie Lerch, 703-902-5559
The Carlyle Group: Christopher Ullman, 202-729-5399
Booz & Company: Michael Bulger, 212-551-6724