Black Diamond Capital Management, LLC Announces Final Closing of its Second Private Equity Fund – US $982 Million

Greenwich – January 23th, 2007 – Black Diamond Capital Management is pleased to announce the final close of BDCM Opportunity Fund II, L.P. (the “Fund” or “Fund II”) with total capital commitments of US$982 million, surpassing its original target of US$750 million. Fund II represents a continuation of the successful investment strategy of BDCM Opportunity Fund, L.P., which held its final closing on $416 million in September 2003.

Fund II expects to invest in distressed debt situations primarily through the purchase of the debt obligations in companies or situations that will typically be undervalued with respect to enterprise value, cash flow valuation or liquidation value. The Fund may also invest directly in equity securities of a portfolio company for purposes of making add-on acquisitions, or for strategic purposes, in certain sectors or industries.

The investors in Fund II comprise returning and new limited partners who represent a broad global base of private capital sources including pension funds, insurance companies, financial institutions, fund of funds, foundations, endowments and family offices in the Unites States, Europe and the Middle East.

Stephen Deckoff, Founder and Partner of Black Diamond, commented, “We are grateful for the support given us by all of our investors as we embark on our strategy to provide them with attractive returns by taking an activist approach to distressed debt situations.”

C.P. Eaton Partners, LLC acted as placement agent. Schulte Roth & Zable LLP served as legal counsel.

About Black Diamond Capital Management, L.L.C.

Founded in 1995, Black Diamond Capital Management, L.L.C. is an alternative asset management firm with approximately $10 billion under management in a combination of distressed-debt/private equity funds, hedge funds and structured vehicles. Black Diamond has offices in Greenwich, CT, Lake Forest, IL and London.

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