ALDAR Properties announces the marketing terms for its US$1.5 billion exchangeable Sukuk

The Issue is being marketed to investors with a periodic distribution amount equal to the 5-year US Dollars mid-swap rate (set at the time of pricing) plus a margin within a range of 0.75% to 1.25% and an initial exchange premium range of 27% to 37% based on the arithmetic average of the volume weighted average price ("VWAP") of the Shares on each trading day from 4 February 2007 to pricing.

The Sukuk will be structured as a Sukuk al-Mudarabah conforming to the principles of Islamic Sharia and is expected to mature on 10 November 2011 (the "Maturity"). The Sukuk will be issued by Aldar Funding Limited (the "Issuer"), a special purpose vehicle established in Jersey. The proceeds of the Sukuk will be invested by Aldar (in its capacity as Mudarib) in accordance with the investment plan set out in the Mudarabah Agreement to be entered into by it in relation to the Sukuk.

On the closing date, Aldar (as Obligor) shall grant, in its corporate capacity and not as the Mudarib, a purchase undertaking in favour of the Issuer. To secure its obligations under the purchase undertaking, Aldar shall grant the Issuer a mortgage over part of the land Aldar owns on or before the closing date. This mortgage will have an estimated market value of at least 120% of the aggregate principal amount of the Sukuk.

Holders of the Sukuk ("holders") have the right to exchange the Sukuk into ordinary shares of Aldar (the "Shares") or a cash-equivalent amount at the option of the Issuer as described in the Terms and Conditions (the "Conditions") of the Sukuk. The issue price is set at 100% of the aggregate principal amount of the Sukuk and the Conditions will provide that the Sukuk will be redeemed in cash at par on 10 November 2011 if holders have not exercised their exchange right prior to the date falling 25 trading days prior to the Maturity or up to the close of business on the 20th trading day before an early redemption at the option of the Issuer.

The Issuer will have the option to redeem all or part of the Sukuk on or at any time after 27 August 2009 and prior to 3 December 2009 by giving not less than 28 nor more than 32 business days' notice to the Sukukholders if Aldar's share price is greater than 140% of the prevailing exchange price during no less than 20 out of any 30 consecutive trading days. On or at any time after 3 December 2009, the Issuer may, by giving not less than 28 nor more than 32 business days' notice to the Sukukholders redeem the Sukuk (in whole or in part) provided that Aldar's share price is greater than 125% of the prevailing exchange price during no less than 20 out of any 30 consecutive trading days.

The investor roadshow for the Issue started in Abu Dhabi on 4 February 2007, followed by presentations in Dubai, Bahrain, London, Zurich, Geneva, Paris, Singapore and Hong Kong.

The offering of the Sukuk targets institutional investors in certain jurisdictions outside the United States (including US Persons), Canada, Australia, Italy or Japan. The Sukuks will be offered to investors outside the United States in reliance on Regulations S under the U.S. Securities Act of 1933, as amended, and in compliance with the laws and regulations applicable in every country where the offering takes place.

Application has been made to list the Sukuk on the Professional Securities Market of the London Stock Exchange. The Shares are listed and traded on the Abu Dhabi Securities Market. Aldar has agreed to a 90-day lock up period with respect to an issuance, offer or sale of equity-linked securities, Shares and options or the announcement to do any of the foregoing.

Barclays Capital, Credit Suisse and National Bank of Abu Dhabi are acting as Joint Global Co-ordinators of the Issue.