PHDC.L Regulatory News (PHDC)

PHD Signs Agreement with OCI

PHD strengthens its Construction capabilities with a commitment to delivery

Cairo, 24, 2010 - Palm Hills Developments (PHD), a leading Egyptian real estate developer has signed an agreement with Orascom Construction Industries (OCI), one of Egypt's leading large-scale industrial and infrastructure contractors.

"PHD seeks to select only the top partners in all of its projects" said Yasseen Mansour, Chairman & CEO, Palm Hills Developments. "Our agreement with OCI, one of the MENA region's leading construction companies, will further strengthen and solidify our position in the real estate market" added Mr. Mansour.

One of PHD's key construction policies has always been on-time delivery and attention to excellence, and OCI's strong reputation and history in the market makes them an ideal partner for us to work with," Mr. Mansour added.

PHD's choice of strategic partners is a clear demonstration of the company's commitment to deliver the highest quality in real estate development for its clients.

OCI Construction Group Managing Director, Osama Bishai commented, "Our agreement with PHD reflects a growing trend for prominent real estate developers to award infrastructure work to major contractors such as OCI to ensure timely delivery to their clients. We will continue to target work from serious real estate developers, such as PHD whose long-term vision and commitment to quality and delivery is aligned with that of OCI."

Under the agreement, OCI will start work on three projects - one in the North Coast and two in the Greater Cairo area - with an expected value exceeding EGP 600 million

With this agreement, PHD will be able to simultaneously work on the company's 19 existing projects, as well as begin work on 9 of the company's new projects. Working with Egypt's top contractors gives PHD immense flexibility and a huge advantage by adding value to fulfill its commitment of delivery of units and to the company's properties.

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About Palm Hills Developments:

Palm Hills Developments (PHD) is a leading real estate company in the Egyptian market, primarily developing integrated residential, commercial real estate and resort projects. Founded in 2005 by Mansour and Maghraby Investment and Development (MMID), the company, which is listed on the Cairo-Alexandria Stock Exchange (CASE) and the London Stock Exchange (LSE), was the result of a vision to create self-sufficient communities through the utilization of integrated tools.

Presently PHD posses one of the largest land banks in the country and is rapidly growing into a regional player, thanks to a geographically diversified land bank suitable for the development of a broad range of real estate products all fashioned to reflect the country's culture as well as the clients' lifestyle and prerequisites.

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