Statement re capital increase rights issue

Second Phase of Palm Hills Developments Capital Increase Over-subscribed 500-fold

Cairo, April 20th - Palm Hills Developments (PHD), one of the leading real estate developers in Egypt listed on both the Egyptian and London Stock Exchanges, announced that the second round of its capital increase rights issue - launched in April 2010 - was over-subscribed more than 500 times.

This rights issuance raises PHD's capital from EGP 1,397,760,000 to EGP 2,096,640,000, an increase in the amount of EGP 698,880,000, representing 349,440,000 shares. The first phase also met with a resounding success, with almost a 99% take-up. Accordingly, subscription was reopened for the second round to cover the remaining approx. 1% of the unsubscribed shares.

 "We believe that this spectacular performance is a reflection of the shareholders' confidence in PHD, it is, I believe, a practical demonstration of our credibility and the strength of our brand equity within the Egyptian Real Estate Developer's market," Said Yasseen Mansour, Chairman and CEO of Palm Hills Developments.

Mr. Mansour went on to say that the proceeds of the capital increase will be used to speed up the construction activities as well as providing a cash cushion to take advantage of any land acquisition opportunities.

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