Statement by Emaar Properties on share offer to Dubai Holding

This offer will increase the current land bank of Emaar in Dubai by 100 per cent.

The company would like to further clarify the following:

1. The offer to issue 2.364 billion new shares of the company to Dubai Holding in lieu of land will be based on a mandatory convertible bond with a tenor of five years. The bond will be converted into shares over the stated five years in five equal tranches.

2. The new shares will be offered at a price which will be determined by the average price of the last 30 days of trading on the Emaar share in the Dubai Financial Market.

3. The five-year mandatory convertible bond will have a zero coupon rate and dividends will not be paid on any bonds that have not been converted to shares.

4. The company will, in two weeks time, announce further details of the deal, including the location and size of the land and the way forward on development. Emaar is of the firm belief that the value of these new developments will convert positively in the results of the company in the financial year 2008 and beyond.

This deal in which the mandatory convertible bond issued at zero coupon rate over a period of 5 years in lieu of prime land is a reflection of Dubai Holding's trust in Emaar and its future plans. The strategic deal with Dubai Holding is aimed to provide good return to shareholders, high quality lifestyle communities to customers and to further grow Dubai's economy.