Press Release

Monday 13th November, 2006

ALDAR EXTENDS DREDGING AT AL RAHA BEACH - AED 340 Million Additional work Added to Contract

ALDAR Properties PJSC announced today that it has extended the dredging contract for its major Al Raha Beach development from the initial 10 million cubic metres to 25 million. The additional work adds AED340 million onto the original contract and is a result of recent land acquisition and approval to adjust the borrow area limits.

The dredging and reclamation contract for Al Raha Beach was awarded earlier this year, after a tender process, to Dredging International of Holland and work commenced in March.

ALDAR Project Director Michael Cox, who made the announcement commented: "We are pleased with the progress Dredging International has made in the past seven months. The dredging is well ahead of schedule and we are confident that this additional work will be completed within the agreed timelines."

The dredging and reclamation contract includes work for a number of Al Raha Beach Communities including Khor Al Raha, Al Bandar, Al Seef and Al Wateed at the eastern end of the development. Throughout the western section there will be capping of soft soils, with bulk filling for the Al Rumaila precinct.

The contract is being supervised by Maunsell Consultancy Services designer of the project's overall infrastructure. Richard Cugley, Maunsell Project Director said: "The dredging and reclamation work is an essential stage of the infrastructure development and the extension of the contract will add new challenges. These are challenges which we have demonstrated we are capable of meeting and we are delighted that we have been able to successfully negotiate the terms for this additional work with Dredging International."

Dredging will continue on the Al Raha Beach site for another 14 months with the eastern areas of the development reclaimed by July 2007 and the western precincts being completed by December 2007.