TPG Capital to Purchase Majority Stake in Valerus Compression Services

HOUSTON & FORT WORTH, Texas, November 2, 2009-- Valerus Compression Services (“Valerus”) and TPG Capital (“TPG”) jointly announced today that investment funds managed by TPG will purchase a majority stake in Houston-based Valerus. Valerus is a privately held provider of natural gas handling services, including natural gas compression, processing, and treating. TPG will invest $500 million in the company’s debt and equity. Proceeds from the transaction will be used to provide capital for the company’s growth plans and to refinance the company’s existing debt. Management, employees, and other current investors will retain the remaining ownership. Terms of the deal were not disclosed.

Chet Erwin will continue in his capacity as Chief Executive Officer. Dan F. Smith will become Chairman at the time of the TPG investment. Mr. Smith served as Chairman, President and CEO of Lyondell Chemical Company until its acquisition by Basell in 2007, and he is currently the Chairman of the Board of Kraton Polymers. The transaction is expected to close by December 31, 2009.

“TPG’s involvement is a critical step in the evolution of the company. This partnership will support our domestic growth trajectory and help us take advantage of significant international opportunities,” Mr. Erwin said.

Michael MacDougall, a partner at TPG, said, “We firmly believe that Valerus is poised to benefit from the continued development of America’s natural gas resources and the growth in gas production from the country’s prolific shale plays. Valerus is also uniquely positioned to help its customers capitalize upon increased natural gas production internationally. We look forward to partnering with the management team to help it pursue the company’s next phase of growth.”

J.P. Morgan and Tudor, Pickering, Holt & Co. Securities, Inc. were financial advisors to TPG. Vinson & Elkins LLP served as legal counsel to TPG. Valerus was represented by Barclays Capital and King & Spalding LLP.

About Valerus

Valerus is a worldwide provider of natural gas handling equipment and services, including natural gas compression, processing, and treating. Valerus executives have an average of 20 years of industry experience. The company is based in Houston, Texas. Please visit www.valerus-co.com

About TPG Capital

TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992 with approximately $45 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Fort Worth, Washington, D.C., Melbourne, Moscow, Mumbai, Paris, Luxembourg, Beijing, Shanghai, Singapore and Tokyo. TPG Capital has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. Please visit www.tpg.com.

Contact:
For Valerus:
Valerus Compression Services
Suzanne Ogle, 713-744-6108
Vice President Marketing and Investor Relations
sogle@Valerus-Co.com
OR
For TPG Capital:
Owen Blicksilver Public Relations
Caroline Luz, 203-656-2829
caroline@blicksilverpr.com

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