BEVERLY HILLS -- The Guardian Life Insurance Company of America (Guardian), has agreed to purchase a major interest in the real estate services and investment firm of Kennedy Wilson. The announcement came today from William McMorrow, chairman of Kennedy Wilson and Thomas Sorell, Executive Vice President & Chief Investment Officer of Guardian.

Under the terms of the transaction, Guardian will purchase $30 million of convertible subordinated debt in Kennedy Wilson. When converted, this provides Guardian a 10.0% interest in the company, while Kennedy Wilson's management retains a 54.1% ownership. Earlier this year Kennedy Wilson raised $53 million in new equity through the issuance of convertible preferred shares. Among those investing in the prior offering were the LeFrak Organization, a major real estate, energy, and investment company based in New York. Another significant investor in the prior offering was The Royce Funds, also based in New York.

"We're particularly gratified that Guardian, a company with an AA+ Standard & Poor's rating, has seen fit to partner with us," said McMorrow. "This new capital allows our company to take maximum advantage of the current opportunities in all sectors of the real estate investment, distressed debt, and services businesses."

"As a mutual life insurance company, we operate solely for the benefit of our policyholders," said Tom Sorell. "Selecting Kennedy Wilson as Guardian's newest business relationship reflects our assessment of their strong record as a successful investor in the real estate investment field. Our new relationship with Kennedy Wilson will provide us with greater opportunities to build on our solid real estate portfolio and provide long-term value to our policyholders."

McMorrow went on to point out that the new relationship between Guardian and Kennedy Wilson has already resulted in a joint venture between the two companies. "Two weeks ago we announced the $84 million acquisition by our companies of Avalon at Blossom Hill (now called Saybrook Pointe), a 324-unit apartment project in San Jose, CA. $23.25 million of equity for that investment came from Guardian," McMorrow noted. "We look forward to continuing a long and prosperous relationship with Guardian."

De Guardiola Advisors, Inc. acted as financial adviser to Guardian in this transaction.

Founded in 1977, Kennedy Wilson is a real estate services and investment firm with offices in 20 U.S. cities and Japan. It seeks opportunities in partnership with clients in pursuit of above-market investor returns and increased real estate values. Additional information can be obtained by accessing www.kennedywilson.com.

Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is one of the largest mutual life insurance companies in the United States. As of December 31, 2007, Guardian and its subsidiaries had $41.3 billion in assets (on a consolidated statutory basis). With close to 3,000 financial representatives and 80 agencies nationwide, Guardian and its subsidiaries protect individuals, small business owners, and their employees with life, disability, health, long-term care, and dental insurance products, and offer 401(k), annuities, and other financial products and trust services. Specializing in the small to mid-size business market, Guardian's Group business unit serves more than 120,000 employers, 6 million employees, and their families. More information about Guardian can be obtained at: www.GuardianLife.com.