Drake & Scull to list on Dubai Financial Market

Notes and media contacts

About DSI

DSI is a leading end-to-end contracting company providing MEP, industrial water and power ("IWP") and civil contracting services in the UAE. These include:
• MEP, where the main activities include:
• Distribution systems for electrical power
• Lighting systems
• Low-voltage systems
• Heating, ventilation, AC, refrigeration, district cooling
• Plumbing, process and high purity piping systems

• IWP, which operates on an engineering, procurement and construction ("EPC") and EPC management ("EPCM") basis, where activities include :
1. Design & build projects in :
• District cooling
• Sewage treatment
• Water purification
2. Infrastructure work

• Civil contracting, where the main activities include:
• Infrastructure work: Cabling/Piping (reticulation)
• Design & build turnkey projects involving District Cooling, Sewage Treatment and Water Purification
• Operation & maintenance of projects
• Independent execution of low & high rise buildings

DSI operates in the public and private sectors across a wide range of industries. Since its launch in 1966, DSI has designed, built, installed, commissioned and maintained the essential services of many of the UAE's landmark buildings and development projects, including: Dubai Internet City, Jumeirah Beach Hotel, Dubai Chamber of Commerce, the Wafi City Complex, Dubai Creek Golf & Yacht Club, Tiara United Towers and Rashid Hospital Emergency & Trauma Centre in Dubai, and the District Cooling Plant at Jumeirah Beach Residences and Dubai Festival City. In addition, DSI has also successfully completed a range of prestigious projects in Abu Dhabi, including the Shangri-La Hotel, Ruwais Housing Complex Extension and the Baynunah Hilton Tower Complex.

DSI is currently contracted to work on 32 major contracts worth around Dhs2.4bn in total and has a strong pipeline of forthcoming business. DSI recently won "MEP Contractor of the Year" and "Medium MEP Project of the Year" titles in Middle East MEP Awards 2007.

Financials

DSI has experienced strong growth in recent years. In 2007, revenues increased by 16.7% from the previous year and the Company saw an increase of 38.1% in gross profits compared to the previous year. Year on year growth in net profits excluding the minority share is 37.6%. These results indicate that, despite rising material costs, the Company continues to reduce overall operating costs and achieve further efficiencies in its business.

As a public company, DSI will seek to maximise returns to shareholders through further increases in profits by enhancing its leadership position in the UAE and expanding its regional operations across the Middle East.

Positive Sector Dynamics

The Company believes that all the principal industries in the GCC that commission construction projects and which are therefore served by DSI, are expected to sustain their rapid regional growth for at least the next seven years. These include: healthcare, hospitality and tourism, commercial and residential real estate and infrastructure projects.

The total value of projects currently under construction in the GCC is estimated at US$1.5 trillion, with MEP accounting for approximately one third of the total. The UAE has the largest construction market in the GCC and Taib Research estimates the total value of active projects at $350bn. According to data published recently by the UAE Ministry of Economy, the nation's construction industry grew by 17% in 2007.

For further information, please contact:

IPO information hotline:
+971 4 3160300

Drake & Scull International
+971 4 3313123
Khaldoun Tabari - Chief Executive Officer
Khaled Jarrar - Chief Financial Officer
Qais Saleh - Strategic Planning Director

Al Mal Capital PSC
+971 4 3696600
Khalid Madi
Razan J. Kabbani
Nicolas Azar

HSBC Middle East
+971 4 5093335
Amro Nahas
Perla Khalife

Brunswick
+971 4 3658260
Alex Blake-Milton
Azadeh Varzi
Jeehan Balfaqaih

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 (the "Prospectus") to be published by Drake and Scull (the "Company") in due course in connection with the listing of its shares on the Dubai Financial Market ("DFM"). Copies of the Prospectus will, following publication, be available from the Company's website (www.drakescull.com) and designated branches of the Receiving Banks.

This announcement and the information contained herein is not for publication, distribution or release in, or into, directly or indirectly, the United States or to US persons (as such term is defined in Regulation S under the US Securities Act of 1933, as amended (the "Securities Act")). The information contained herein does not constitute an offer of securities for sale or solicitation of an offer to purchase securities in any jurisdiction, including in the United States.

No offer or invitation to acquire securities in the Company is being made by or in connection with this announcement. Any such offer will be made solely by means of the Prospectus and any acquisition of securities should be made on the basis of the information contained in such Prospectus.

This announcement does not constitute a recommendation concerning the offering. The value of securities can go down as well as up. Past performance is not a guide to future performance. Potential investors should consult a professional adviser as to the suitability of any offering for the person concerned.

Certain statements, beliefs and opinions in this document, including those related to the Offering, are forward-looking, which reflect the Company's current expectations and projections about future events. These statements typically contain words such as "anticipate", "assume", "believe", "expect", "plan", "intend" and words of similar substance. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Neither the Company nor any other person undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document. No statement in this document is intended to be a profit forecast.