Damas announces intention to float on DIFX

Notes and media contacts

About Damas

Damas traces its origins back to 1907. The Damas Group has 438 stores in 18 countries around the world, as at 31 December 2007. It has an extensive retail network with stores primarily located in Middle East, South Asia, Europe and North Africa. It enjoys strong brand awareness in the UAE and the wider GCC region. Damas appeals to a wide range of nationalities and socio-economic backgrounds through distinctive store formats, each tailored to a specific type of customer. Les Exclusives caters to high net-worth customers, Semi-Exclusives to upper-middle income consumers such as tourists and expatriates and Damas 22k caters primarily to middle income and working class populations.

In addition to its own brands and products, which account for the majority of sales, Damas also acts as distributor or agent or owner for international brands such as Tiffany & Co.®, Paspaley®, Parmigiani®, Stefan Hafner® and Links of London®. The Damas Group also owns several watch stores in the UAE in addition to Damas Kids, which targets children and parents. In addition to the retail business, the Company sells loose diamonds and gold and diamond jewellery on a wholesale basis.

The Company has significant manufacturing capabilities and manufactures gold and diamond jewellery in these facilities. These capabilities encompass the entire cycle from design to manufacturing and branding.

Damas's management team has extensive industry experience and knowledge. In preparation for the IPO, the Board is being expanded to include a strong combination of executive as well as independent members who bring significant business experience to the Company. As at 31 December 2007, the Damas Group had 1,820 full-time employees in the UAE and 2,862 employees worldwide.

Damas has a strong track record of solid financial performance. For the three-month period ended 31 March 2008, the Company had revenues of Dhs1.12bn, EBITDA of Dhs106.7m, adjusted EBITDA of Dhs118.9m and net profit of Dhs69.7m. As at 31 March 2008, the Company had total assets of Dhs5.066bn. For the year ended 31 December 2007, the Company had revenues of Dhs3.54bn, EBITDA of Dhs251.3m, adjusted EBITDA of Dhs293.6m and net profit of Dhs209.1m. As at 31 December 2007, the Company had total assets of Dhs5.072bn.

For further information, please contact:

Damas International Limited
+971 4 210 5502
Tawhid Abdullah, Chief Executive Officer & Managing Director
P.K. Dutta, Chief Financial Officer

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

This document (and the information contained herein) does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase securities, in the United States, Australia, Canada or Japan, or any other jurisdiction where such an offer or solicitation would be unlawful. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to U.S. persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of the securities will be made in the United States.

The shares will not be offered in any jurisdiction other than in compliance with the applicable laws, rules and regulations governing the issue, offering and sale of securities to the public. This announcement is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49 (2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any offer of securities to the public that may be deemed to be made pursuant to this announcement in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any EEA Member State, the "Prospectus Directive") is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive.

This communication does not constitute an offer or invitation, or form the basis for a decision, to invest in any securities of Damas International Limited in the DIFC or to persons in the DIFC, or by a person from the DIFC. This communication has not been reviewed or approved by the Dubai Financial Services Authority ("DFSA") nor has the DFSA taken any steps to verify the information set out in it.

This communication does not constitute an offer or invitation, or form the basis for a decision, to invest in any securities of Damas International Limited in the UAE or to persons in the UAE, or by a person from the UAE. This communication has not been reviewed or approved by the Emirates Securities and Commodities Authority ("ESCA") nor has ESCA taken any steps to verify the information set out in it. The purchase of securities in a company involves financial risk. Before deciding to buy any securities you should (a) consult a financial advisor and (b) ensure that you have read carefully the prospectus governing the offer of such securities. The securities may not be, have not been and will not be sold, subscribed for, transferred or delivered in the UAE other than in compliance with the laws of the UAE governing the sale, subscription for, transfer and delivery of securities.

Statements contained herein may constitute "forward-looking statements". Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology.

Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause the Company's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.