PHDC.L Regulatory News (PHDC)

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN AND AUSTRALIA

Palm Hills Developments S.A.E. announces the successful completion of its EGP 600,000,000 rights issue

Cairo, 19 February 2014: The Board of Directors of Palm Hills Developments S.A.E. (the "Company") is pleased to announce the successful completion of the Company's rights issue (the "Rights Issue") announced on 13 October 2013, pursuant to approvals nos. 16269 and 19852 of the Egyptian Financial Supervisory Authority (EFSA) dated 09/10/2013 and 15/12/2013, respectively, to increase the paid-up share capital of the Company.

The completion of the Rights Issue resulted in 300,000,000 new ordinary shares (the "New Shares") being subscribed for (including through over-subscriptions), with an aggregate subscription price of EGP 600,000,000 (plus fees), of which 1,051,110 New Shares are in the form of 210,222 new global depositary receipts (the "New GDRs").

Dealings on the London Stock Exchange in the New GDRs are expected to commence on or about 20 February 2014.

Following the Rights Issue, the issued share capital of the Company is 1,348,320,000 ordinary shares with a nominal value of EGP 2 each.

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For Further Information:

Miss. Ola Abdel Maksoud Tayel

Investor Relations Officer

Smart Village, Abou Rawash, 6th October City

Tel: + (202) 3535 1608

Fax: + (202) 3535 1208

DISCLAIMER:

These materials are not an offer for sale of any securities in the United States. The Company has not registered, and does not intend to register, any portion of the potential Rights Issue in the United States, and does not intend to conduct an offering of any securities in the United States. These securities may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended.

This document does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The Rights Issue and distribution of this document and other information in connection with the Rights Issue in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

No person has been authorised to give any information or to make any representations other than those contained in this announcement and, if given or made, such information or representations must not be relied on as having been authorized by the Company. In addition, no agent or representative of the Company accepts any responsibility whatsoever for the contents of this document and no representation or warranty express or implied, is made by any agent or representative as to the information set out in this document. Subject to the Listing Rules, the Prospectus Rules and the Disclosure and Transparency Rules, the issue of this announcement shall not, in any circumstances, create any implication that there has been no change in the affairs of the Company or any of its subsidiaries, joint ventures or restricted affiliates, since the date of this announcement or that the information in it is correct as at any subsequent date.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This document contains forward-looking statements, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words "targets," "believes," "expects," "aims," "intends," "may," "anticipates," "would," "could" or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

These forward-looking statements speak only as at the date of this document. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any of such statements are based.

The information contained herein is restricted and is not for publication, distribution or release, directly or indirectly, in or into the United States, Canada, Japan or Australia.

This communication is only directed at (i) persons who are outside the United Kingdom or to (ii) persons who are either (a) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (b) 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 referred to herein 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 communication or any of its contents.

Any offer of securities to the public that may be deemed to be made pursuant to this communication in any EEA Member State that has implemented Directive 2003/71/EC (as amended and together with any applicable implementing measures in any Member State, the "Prospectus Directive") is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive. This document is an advertisement and not a prospectus for the purposes of the applicable measures implementing the Prospectus Directive and as such does not constitute an offer to sell or the solicitation of an offer to purchase securities.