Fabindia/EAST

January 6, 2009

      Compass Advisers, LLP ("Compass") is pleased to announce the acquisition of a 25% share plus options to acquire 100% control in a 3-year, phased earn-out of U.K. retailer EAST Ltd. ("EAST") by Fabindia Overseas Private Limited ("Fabindia"), a leading India-based, craft-based apparel and home products retailer.  This transaction represents Fabindia's expansion into the European market in one of the first U.K.-India change-of-control transactions in the retail sector.  EAST is a mid- to up‑market natural fiber garment retailer with an established niche in the U.K. fashion market and 77 stores (including John Lewis concessions) earning revenues in excess of £30 million.  This transaction highlights Compass' ability to help our clients execute creative solutions even in challenging economic markets.

      Compass sourced the investment opportunity to Fabindia, noting the obvious strategic fit and product relevance for the two retailers in their respective geographies.  The transaction creates a global ethnic-wear retailer that builds on the strengths of its predecessors.  Fabindia gains a strong foothold in a new international market, and EAST's merchandise achieves similar synergies in India.

      Compass helped structure the transaction to be reasonably "recession proof," allowing a direct flow of capital into the business and securing Fabindia's interest while providing flexibility in a volatile economy.  William Bissell, Managing Director of Fabindia comments, "EAST Ltd. presents a perfect complement to our existing product lines and is the ideal partner for our mutually rewarding geographic expansion.  We are delighted to collaborate with a team that shares our vision and approach.  Compass Advisers was instrumental in advising us on this transaction, presenting us with a strategic opportunity and a Deal Structure that benefits all parties."

      Compass' global coverage, strong relationships with and access to senior retail professionals, and extensive experience executing cross-border deals helped originate and complete the transaction in a very difficult financing environment.