Red Sea results drive dividends and announce capital budget to increase production

As a result of the strong results Dr. Majed Al Kassabi announced that the board of directors intends to make a recommendation to the general assembly to distribute SAR1.5 earning per share at the general assembly meeting to be held later this year.

'When you discount a prior year adjustment, the net income for the nine-month period ending 31 December 2006 was up 9 percent compared to the same period a year ago,' added Daniel Meikleham the company CFO.

Don Sumner, Red Sea's CEO stated,

'Not only did we have nine-month record sales, among other bright news, is the fact that currently we have on order over SAR440,000,000 of new business. We will, for the next few months, concentrate on increasing productivity, increasing capacity and creating income producing assets.'

The board unanimously accepted the company's 2007 budget which includes SAR200,000,000 capital spending to; expand the Dubai Manufacturing Facility, construct a new factory in Doha, Qatar, create additional Remote Site Camps and commence a program to build five new Lease Compounds over the next five years.

'All funding will come from working capital on hand,' announced Don Sumner, 'Red Sea Housing continues to maintain a strong balance sheet with no long term debt. This financial strength, along with a seasoned management team, should help the company meet the challenges ahead.'

Red Sea Housing Services, a public company listed on the Saudi Stock Exchange under Red Sea symbol 4230, was established in 1986 and is a world leader in the manufacture of modular buildings for the Middle East, Africa and Asia (www.rsh.com.sa). It has supplied hundreds of projects in 52 countries around the world. With three modern manufacturing facilities, all ISO certified and strategically located in Saudi Arabia, United Arab Emirates and Ghana, Red Sea Housing Services is capable of serving its diversified clients with quality products in a timely manner.