Depa initial public offer commences

Notes and media contacts

About Depa

Depa is a leading provider of interior contracting services in the Middle East and North Africa ('MENA'). Depa operates principally in the luxury fit-out sector with a focus primarily on the hospitality, commercial and residential property, airport, retail, yacht, theming and specialist fit-out sectors. In addition, Depa is also a provider of manufactured products and procurement services, with a specific focus on customised furniture, fixtures and equipment (FF&E), which it provides to third parties and uses in in-house operations.

Fit-out includes the installation of interior walls, ceilings, floors, doors and frames, joinery and metal work. Furniture and fixtures include consoles, tables, chairs, upholstery, carpets, curtains, lighting and bedding items.

Depa has been providing interior contracting services since 1996 and has established a strong reputation and long term relationships within the industry and markets in which it operates through executing large and complex projects. These projects include the fit out of Burj Dubai, the Burj Al Arab Hotel and Emirates Palace Hotel in the UAE, the Museum of Islamic Art in Qatar, the Four Seasons Hotel in Egypt, the Four Seasons Hotel in Mumbai, India and the Mazagan Hotel in Morocco.

Depa expects its track record and existing relationships with developers, such as Kerzner, Nakheel and Emaar, and hotel operators, such as Fairmont, Four Seasons and InterContinental, to allow it to grow with its clients into new geographic markets and provide a strong pipeline of potential future projects.

Depa operates through an integrated network of subsidiaries, affiliates and representative offices located in the UAE, Saudi Arabia, Qatar, Egypt, Jordan, Morocco, Libya, India, Malaysia, Thailand, China, Singapore, the UK, the Netherlands and the US. Through this network, Depa has successfully executed projects in over 15 countries. Depa's market leading position in the MENA region combined with the uniquely integrated product and service offerings should allow it to benefit from future growth in these markets.

Depa's vertically integrated structure with in-house operations at several points in the manufacturing and procurement supply chain supports its interior fit-out services. This structure allows it to control costs, ensure access to and timely delivery of materials and products and maintain quality control over materials used; enables it to better capture upstream profits; serves to minimise exposure to variable contract pricing risks; and serves as a differentiating factor from many of Depa's competitors.

Depa has experienced significant growth over recent years. This growth has been achieved, in part, through the establishment of operations in a number of jurisdictions and through acquisitions and entering into new joint ventures. Depa has established new operations in a number of new geographic markets including Saudi Arabia, Qatar, Morocco, India and Libya. It has also acquired stakes in a joinery and manufacturing businesses, a procurement company and specialised interior fit-out businesses; which has facilitated the continuing backward integration of the supply chain.

Depa's senior management team each have between 10 and 25 years experience in the interior contracting industry within the MENA region as well as in other markets. As a result of this experience, Depa believes that the existing management team is well positioned to drive the performance of the business forward.

Depa has highly skilled and flexible work force of approximately 7000 employees enabling it to meet project deadlines, control costs, and adequately staff projects, as required, and reducing exposure from labour or subcontractor shortages in the markets in which Depa operates. The strength of the workforce ideally positions Depa to best take advantage of future growth.

Financials
Over the last three years Depa (including its predecessor companies) has achieved compound annual sales growth rate of 124%. Depa benefits from a diversified revenue mix from over 15 countries with 18.5% of revenues derived outside the UAE.

Contract income for the year ended 31 December 2007 increased 35.5% to Dhs1,419.8m (2006: Dhs1,048.1m). Net profit attributable to equity holders in the same period increased 72.2% to Dhs160.5m (2006: Dhs93.2m).

Depa continues to seek to reduce overall operating risk, optimise growth and increase profits by diversifying revenue base through strategic acquisitions of, or investments in, businesses in both new geographic markets as well as those offering products and services outside the current portfolio. As a public company, Depa intends to pursue a progressive dividend policy.

This announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information in the prospectus to be published by Depa Limited (the 'Company') in due course in connection with a primary listing of its shares on the Dubai International Financial Exchange ('DIFX') and a listing of global depositary receipts ('GDR's') on the London Stock Exchange plc (the 'Prospectus'). Copies of the Prospectus will, following publication, be available from the Company's registered office, the London offices of Morgan Stanley and UBS Investment Bank and the offices of Allen & Overy LLP, Suite 101/202, Level 2, The Gate Village Building GV08, Dubai International Financial Centre, Dubai, UAE.

For further information, please contact:

Depa Limited
+971 4 224 3800
Mohannad Sweid, Chief Executive Officer
Noor El Solh, Managing Director of Strategy
Eyad Abdelrahim, Managing Director of Finance

Morgan Stanley
+971 4 363 4800
Robert Foster
Edmund Higenbottam
Giuseppe Cosulich

UBS Investment Bank
+44 20 7568 1000
Bilal Mekkaoui
Mahmoud Abdulhadi
Deepak Sran
Global Investment House
+965 240 0551
Ashish Datar
Pratik Agarwal
Samer Abbouchi

The National Investor
+971 2 619 2300
Kashif Zia
Nadim Nahouli

Mashreq Bank
+971 4 363 2415
Avneesh Mishra
Head of Investment Services

Brunswick Gulf Ltd
+ 971 4 365 8260
Rupert Young
Azadeh Varzi
Jeehan Balfaqaih

Brunswick Group LLP
+44 20 7404 5959
Kate Holgate
Laura Cummings