Damas announces changes in management

Following yesterday's voluntary suspension of trading by Damas International Limited, the company today announces that it has accepted Mr. Tawhid Abdulla's resignation as Managing Director and CEO due to his disclosure to the Board of what is understood to be unauthorized transactions conducted by him.

The full extent of these transactions has not been ascertained at this time but the Company's initial estimate is that these transactions could amount to approximately $165m.

The Abdulla brothers, being founding members and current owners of more than 50% of the shares of the Company, fully stand behind the Company, and have agreed to commit the necessary assets to secure and repay in full any unauthorized transactions.

The Board remains fully committed to the highest standards of corporate governance, and has implemented procedures to ensure that the repayment is conducted in an appropriate and timely manner and that all transactions are fully scrutinized in the future to prevent a recurrence. A special committee of the Board is appointing an independent global accountancy firm to conduct an independent review and an international law firm to assist in analysis of the transactions.

Mr. Tawfique Abdulla will continue to serve as Chairman of the Board and has also assumed day-to-day responsibilities as Managing Director.

The Company continues to perform well in the current economic climate, as expected to be reported in the half yearly accounts for the period ending 30 September 2009, to be announced in November. The Company has adequate funds to meet its current financial obligations and is continuing to conduct business as usual.

The Company will continue to keep the market informed of key developments.