Galfar Engineering & Contracting SAOG announce unaudited results for nine months ended September 30th, 2007 and appoints board members

Report on transformation and registration of the company as SAOG:

The company came out with its Public Issue during the third quarter which received overwhelming response from the investing public.

The Constitutive General Meeting of the shareholders was held on October 9, 2007, where the first Board of Directors of the company formed with nine members were elected, and immediately the elected members held their first meeting and elected Sheikh Salim Said Hamed Al Fannah Al Araimi in the office of the Chairman of the Board and Dr. P. Mohamed Ali in the office of Vice Chairman of the Board.

Then new Board of Directors have completed the procedures and obtained all the required approvals for registration of the Company at the Ministry of Commerce and Industries as Stock Associate Omani General SAOG on 23rd October 2007 and listed the shares of the Company for trading at Muscat Security Market on 24 October 2007.

Performance Report:

The contract income of the company has increased to RO181m during the first nine months as against RO105m during the same period last year, showing an increase of 72%.

The profit on contracts has increased by 73% to RO23m against RO13m during the same period last year.

The profit from operations has increased by 94% to RO19m as against RO9.8m during the same period last year.

The Profit Before Tax during the current period has increased by 99% to RO17.7 as compared to RO8.9m and the Profit After Tax has increased by 97% to RO15.5m compared to RO7.8m during the same period last year.

The company is confident of achieving the projections given in the prospectus for the year 2007.

The total assets of the company as on September 30, 2007 is RO294.7m as compared to RO157.3m during the same period last year.

The net worth of the company has increased to RO64.9m as on September 30, 2007 when compared to RO19.7m during the same period last year.

Future Outlook

The company has a healthy order book position. The company has been awarded the following jobs after the issue of the prospectus.

Salalah Re-development of Al Shattie East & Ber Bint Najem -
Royal Court Affairs
Package 1
RO10.9m

Package 2&3
RO9.1m

Package 4
RO5.8m

Package 6
RO2.2m

Dualization of Al Muladah-Al Hazm Road -
Ministry of Transport & Communication
RO9.4m

Design & Construction of Bausher Al Amerat Road -Phase 3
Ministry of Transport & Communication
RO3.9m

Sohar PRT Expansion - Oman Gas Co.
RO8.8m

Al Burj Full Field Water Injection Project -
Petroleum Development Oman
RO19.6m

Showroom and Service Facilities at Liwa -
Saud Bahwan Automotive LLC
RO5.9m

The Board of Directors, on behalf of the company also took the opportunity to thank His Majesty Sultan Qaboos Bin Said and His Majesty's Government for their encouragement and continuous support Salim Said Hamed Al Fannah Al Araimi Chairman commented.