Annual Financial Report

Princess Private Equity Holding Limited

For Immediate Release

ANNUAL FINANCIAL RESULTS ANNOUNCEMENT

YEAR ENDED 31 DECEMBER 2011

The Board of Princess Private Equity Holding Limited (Princess or the Company) announces the Audited Consolidated Annual Financial Results of the Company for the year ended 31 December 2011.

In accordance with DTR4.1, the full Annual Financial Report will be issued to Shareholders on or about 7 March 2012. The required announcement in accordance with DTR4.1 will be made on the day of issue of the Annual Financial Report.

CHAIRMAN'S REPORT

Dear valued investor

As Chairman of the Board of Princess Private Equity Holding Limited, I am pleased to present the Annual Report for 2011. I continue to have great confidence in the Princess portfolio and its Investment Manager, and I am convinced that the active repositioning measures implemented in 2011 have substantially enhanced the position of your Company.

The strategic review in late 2010 to address Princess' share price to net asset value (NAV) discount proposed introducing dividend payments, implementing a share buyback program and repositioning the portfolio towards direct investments. To this end, the Company paid its investors a total dividend of EUR 0.45 per share in 2011 and invested EUR 23.4 million in six direct transactions. Of these investments, two were mezzanine transactions in Newcastle Coal Infrastructure Group, the Australian coal export terminal operator, and Securitas Direct, the European alarm solutions provider. The remaining four were private equity investments such as in BarBri, a firm noted as the largest provider of bar exam test preparation services in the world.

Going forward, the intention is to pay dividends semi-annually, with an annual aggregate of 5-8% of NAV per share. During the year, the Company also implemented a number of share buybacks. Ultimately these measures helped, whereby towards the end of the year, Princess' share price was trading in the upper tier of its peers' discount to NAV range.

Distribution proceeds also increased significantly in 2011, as robust trade sales and Princess' mature portfolio helped to facilitate a high number of successful realizations. For Princess, the fourth quarter also proved to be the most lucrative quarter for distributions since the corresponding period in 2007. As a result, Princess' balance sheet remains in a good position to support both future dividend payments and further direct investments, with dividend payments being the main priority for the Board. Despite volatile public markets throughout the latter half of 2011, Princess continued to build upon its strong recent track record, delivering NAV growth of 6.6% in 2011.

My fellow Directors and I would like to take this opportunity to thank you for the confidence you have shown in Princess. It is our sincere belief that the substantial progress made with the repositioning of Princess so far and the continuing transition towards a direct investment company with a high dividend yield objective will ensure that Princess is well-placed to continue creating value for its shareholders over the years to come.

Brian Human, Chairman

Guernsey, 6 March 2012

Audited consolidated statement of comprehensive income for the period from 01 January 2011 to 31 December 2011

The Euro earnings per share is calculated by dividing the surplus / (loss) for the financial period by the weighted average number of shares outstanding.

Audited consolidated statement of financial position

As at 31 December 2011

Audited consolidated statement of changes in equityfor the period from 01 January 2011 to 31 December 2011

Audited consolidated cash flow statement

for the period from 01 January 2011 to 31 December 2011

NAV maintains positive momentum in 2011

In 2011, Princess' audited net asset value (NAV) increased by 6.6% to EUR 8.81 per share, adjusted for the total dividend of EUR 0.45 per share paid out over the year. Despite volatile public markets throughout the latter half of 2011, Princess continued to build upon its strong recent track record, having delivered NAV growth of 18.4% in 2010.

Positive valuation developments in the Princess portfolio were by and large responsible for the bulk of the Company's NAV growth in 2011, adding as much as 9.7% to NAV development. This performance was predominantly fuelled by the operational growth of underlying portfolio companies, as constructive value creation initiatives by the Investment Manager and its partners continued to engender operational improvements. For instance, Princess' 30 largest portfolio companies, representing approximately 27% of NAV, posted weighted average year-on-year revenue and earnings (EBITDA) growth of 7.5% and 11.4%, respectively.

Realizations provided a further boost to NAV growth over the year, as Princess' mature portfolio and robust initial public offering (IPO) activity in the first half of 2011 led to the Company benefiting from sizable distributions. During the year, firms such as Nycomed, the Swiss pharmaceutical producer; General Nutrition Centers, the US-based retailer of health and nutrition products and Princess' largest company by value; Jack Wolfskin, the German outdoor-clothing maker; and Phadia Group, the Swedish medical diagnostics company, were all exited at significant premiums to their previous carrying values.

Falling public markets during the second half of 2011, however, took some of the shine off these positives, with foreign exchange movements having only a negligible impact (-0.2%) on performance as the US dollar depreciated slightly against the euro.

Correcting public markets impact on share price

Amid financial market volatility, Princess' share price decreased by 1.4% in 2011 to EUR 5.84 on the Frankfurt Stock Exchange (Xetra), adjusted for the dividend payments. Princess did however continue to outperform the LPX 50 Total Return Index (in euro terms) for listed private equity, which declined 16.2% over the corresponding period.

One direct consequence of Princess' falling share price was the widening of the discount to NAV, which stood at 33.7% as of the end of December 2011. However, the Investment Manager believes that such a large gap, though substantially smaller relative to its peers, reflects neither the high quality of the Princess portfolio, nor the active steps taken by the Board and the Investment Manager in recent quarters to address the discount. These strategic measures include the payment of semi-annual dividends and the repositioning of the portfolio towards direct investments.

Princess pays EUR 0.45 per share dividend

Princess paid investors a total dividend of EUR 0.45 per share, or EUR 31.4 million overall in 2011. This translated to an annualized dividend yield of 5.0% based on the NAV per share as of 30 September, or an annualized dividend yield of 7.7% based on the closing price of EUR 5.84 on the Frankfurt Stock Exchange at the end of the year.

Going forward, Princess intends to pay dividends semi-annually, with an annual aggregate of 5-8% of NAV per share. The Investment Manager is confident that the strong dividend yield on offer will further enhance the attractiveness of Princess to new and existing investors alike.

Six new direct investments concluded in 2011

In 2011, Princess invested EUR 23.4 million to fund six direct transactions, as part of the strategy to reposition its portfolio in favor of direct investments. During the first quarter, Princess completed a EUR 5.6 million mezzanine investment in Australian coal export terminal operator Newcastle Coal Infrastructure Group. This was followed in the second quarter by a EUR 3.8 million buyout investment in a leading European apparel retailer, and a EUR 2.7 million mid-cap buyout investment in BarBri, a provider of bar exam preparation services in the US.

In the third quarter, Princess closed a EUR 4.5 million direct mezzanine investment in Securitas Direct, opportunistically replacing a planned subordinated high-yield bond issuance, as the high-yield debt market seized up over the second half of 2011. In the fourth quarter the Company finalized two further direct transactions. The first was a EUR 3.5 million investment in a European non-food discount retailer, while the second was a EUR 3.2 million small-cap buyout investment in a solar energy company. The company is a leading global manufacturer of high-precision mirrors, a critical component used in the production of concentrated solar power (CSP) systems, and thus gives Princess direct exposure to the attractive renewable energy market. The company currently has production facilities in Spain and the US.

Overall, new investments for 2011 totaled EUR 75.0 million, up from EUR 59.5 million in 2010. Although this year's total included EUR 51.5 million in drawdowns from existing fund commitments, it is expected that new direct transactions will account for virtually all investment activity in two to three years' time, given that Princess' existing fund commitments are nearing the end of their investment periods.

Maturing portfolio boosts distribution activity

Distribution proceeds increased significantly in 2011, as robust trade sales and Princess' mature portfolio helped to facilitate a high number of successful realizations. Distribution proceeds from exited investments rose to EUR 115.4 million from EUR 95.2 million in the previous year; and for Princess the fourth quarter proved to be the most lucrative quarter for distributions since the same period of 2007, with as much as EUR 35.1 million received from realized investments.

Two key exits for Princess in 2011 were the EUR 9.6 billion trade sale of Nycomed to Japan's Takeda Pharmaceuticals, which generated a EUR 6.5 million distribution to Princess, and the IPO and subsequent secondary share sale by General Nutrition Centers (GNC), which generated aggregate distributions to Princess of EUR 10.3 million. The realization of the investment in Jack Wolfskin was another notable exit, as the sale generated a more than tenfold return on the original investment in the company and a distribution of EUR 7.0 million for Princess in August.

Princess maintains its healthy net liquidity position

Princess' net liquidity position strengthened over the year, as distributions from successful realizations (EUR 115.4 million) exceeded capital calls from existing fund commitments (EUR 58.3 million) by EUR 57.0 million. The company also deployed EUR 23.4 million in new direct investments. Aside from exit proceeds, Princess also received EUR 21.2 million from the secondary sales program that was concluded in the first quarter of 2011. The Company therefore holds sufficient liquidity on its balance sheet to permit new direct investments and the on-going return of capital to shareholders. The investment level stood at 99.3% and net liquidity at EUR 4.4 million as of the end of December 2011.

In July, the Board of Directors of Princess also agreed a new EUR 80 million multi-currency credit facility, arranged by Lloyds Bank Corporate Markets. This replaced Princess' existing facility, which was due to expire in September 2012. The new credit facility was structured as a senior revolving facility with a three-year term, and was secured on more favorable terms. The credit line, which has not been drawn upon, will be used to address short-term funding needs.

Unfunded commitments down by more than 30%

Unfunded commitments in the Princess portfolio decreased by around 31.7% in 2011 to EUR 143.9 million, down from EUR 210.4 million as of the end of 2010. Around 25%, or EUR 36.9 million, of the Company's unfunded commitments stem from funds that have a vintage year 2000 and older, and are considered unlikely to call any more capital as they should have already completed their investment periods. The Investment Manager expects unfunded commitments to virtually disappear over the next two to three years, and no new fund commitments are being made under the policy of focusing on direct transactions.

Key milestones achieved

Princess achieved several key milestones in 2011, as the Company began to implement measures to boost shareholder value prescribed by its 2010 strategic review. One key development was the introduction of dividend payments, with an intended annual aggregate yield of 5-8% of NAV per share. Elsewhere, Princess closed on six new direct investments as it sought to reposition the portfolio towards direct investments and hence reduce the discount to NAV.

In 2011, the Company's liquidity position was also enhanced by the completion of a secondary sales program that raised EUR 50.1 million from the disposal of nine buyout funds at the end of 2010 and beginning of 2011. A share buyback program to provide support to Princess in the face of heightened market volatility resulted in the repurchase and cancellation of shares worth EUR 3.2 million.

Outlook

The Investment Manager anticipates that Princess' NAV growth will maintain its positive momentum throughout 2012, with successful realizations from its mature portfolio and positive operating results from underlying company holdings providing a boost to performance, although at a lower growth rate compared to recent years. Distributions are expected to receive solid support from secondary buyouts and particularly trade sales in 2012, as cash-rich corporates increasingly deploy capital as an alternative to holding cash on their balance sheet. These distributions should also help to fund new direct investments, as Princess advances the strategic repositioning of its portfolio in favor of direct investments.

Nonetheless, in 2012 the Company plans to adopt a cautionary stance with respect to both new investments and realization expectations, as the trajectory for global growth, particularly among more advanced economies, is expected to develop at a below-trend pace over the medium term. So, while the Investment Manager will continue to screen new direct investments on a global basis, as in previous quarters, the emphasis will remain on pricing discipline or buying at the right price. This involves avoiding stretched valuations, particularly in the large-cap sector, in favor of more attractively priced small- to mid-cap transactions such as BarBri or the solar energy company.

Despite the ongoing global uncertainty, investors in Princess should receive some assurance in 2012 from the Company's robust liquidity position, as evidenced by the quality of its balance sheet, the prospect of more distributions from its mature portfolio and the support of the undrawn credit facility.

In conclusion, the Investment Manager remains confident that the attractive dividend yield on offer and the considerable progress made thus far with the strategic repositioning of Princess towards more direct investments will further enhance its value for shareholders.

PORTFOLIO ALLOCATION

Increased allocation to direct investments

At 75%, the largest allocation in the Company's portfolio as of the end of 2011 was to primary investments, down from 80% as of the end of the previous year. The allocation to direct investments increased to 22% as of year-end 2011 (2010: 17%), with the portfolio allocation to secondary investments remaining unchanged at 3% (2010: 3%).

Special situations exposure increases by 2 percentage points

The allocation of the portfolio to the buyout sector remained unchanged versus the previous year at 66%. Investments were spread equally between the small- and mid-cap and the large- and mega-large-cap buyout segments. The allocation to special situations investments rose by 2 percentage points in 2011 to 19% of the portfolio. This was supported by EUR 10.2 million in new direct mezzanine investments in 2011. Finally, the share of venture capital investments in the portfolio decreased to 15% at the end of 2011 from 17% at the end of 2010. This reflects the fact that many of the portfolio companies in the venture stage are maturing, and more and more of them are being realized.

Asian investments favored in the medium term

The geographical exposure of the Princess portfolio by value at the end of 2011 was split between North America (55% against 59% in 2010), Europe (34% against 32% in 2010) and Asia & Rest of World (11% against 9% in 2010). Following the 2010 strategic review which called for the repositioning of the portfolio, it has been the intention to increase Princess' exposure to Asia and the Rest of World in the medium term.

Highly diversified portfolio by industry sectors

The Princess portfolio is broadly diversified across a wide range of industries. The highest allocations are to the consumer discretionary (24%), industrials (21%), healthcare (17%), information technology (10%) and financial (10%) sectors, which together represented more than four-fifths of the NAV as of the end of 2011.

Well-balanced split by investment year

The maturity of the Princess portfolio is further underpinned by a healthy level of diversification across investment years. Around 27% of Princess' current investments were made before 2007. These portfolio companies have been developed in the past years in readiness for exiting over the next few years. Around 42% of the Company's more recent investments were made over the past four years and typically at lower entry valuations.

A detailed analysis and commentary on the developments of Princess during 2011 is presented in the published Annual Report, which can be accessed via: http://www.princess-privateequity.net/financialreports

A copy of the report has also been submitted to the National Storage Mechanism and will shortly be available for inspection at: http://www.Hemscott.com/nsm.do

Ends.

About Princess

Princess is an investment holding company founded in 1999 and domiciled in Guernsey. It invests, inter alia, in private equity and private debt investments. Princess is advised in its investment activities by Partners Group AG, a global private markets investment management firm with EUR 25 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. Princess aims to provide shareholders with long-term capital growth and an attractive dividend yield. Princess is traded on the Frankfurt Stock Exchange (ticker symbol: PEY1) and on the London Stock Exchange (ticker symbol: PEY). Further information: www.princess-privateequity.net

Contacts

Princess Private Equity Holding Limited:

[email protected]

www.princess-privateequity.net

Registered Number: 35241

Media enquiries:

Partners Group AG

Dr. Anna Hollmann

Communications

Tel.: +41 41 768 83 72

[email protected]

www.partnersgroup.com

This document does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for any securities and neither is it intended to be an investment advertisement or sales instrument of Princess Private Equity Holding Limited. The distribution of this document may be restricted by law in certain jurisdictions. Persons into whose possession this document comes must inform themselves about, and observe any such restrictions on the distribution of this document. In particular, this document and the information contained therein is not for distribution or publication, neither directly nor indirectly, in or into the United States of America, Canada, Australia or Japan.

This document may have been prepared using financial information contained in the books and records of the product described herein as of the reporting date. This information is believed to be accurate but has not been audited by any third party. This document may describe past performance, which may not be indicative of future results. No liability is accepted for any actions taken on the basis of the information provided in this document. Neither the contents of Princess' website nor the contents of any website accessible from hyperlinks on Princess' website (or any other website) is incorporated into, or forms part of, this announcement.