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Depa acquires world-leading international yacht fit-out specialist, Vedder

Nov 4 ,2008

Depa Limited

Depa acquires world-leading international yacht fit-out specialist, Vedder

Dubai, 04 November 2008: Depa Limited (ticker DEPA), the world’s largest provider of interior contracting services, today announces that it has acquired Möbelwerkstätten Vedder GmbH (‘Vedder’), a leading luxury yacht interior design and high quality fit-out specialist based in Germany. This acquisition is in line with Depa’s diversification and horizontal expansion strategy of acquiring strong niche players in its core business lines in target markets.

Founded over 100 years ago in North-West Germany, Vedder designs and builds customized interiors of large luxury yachts for an exclusive international client-base. It has attained a leading market position by focusing on expert craftsmanship, innovation, consistency, and quality.

The acquisition further strengthens Depa’s growing presence in the yacht fit-out market where its subsidiary Pino Meroni, a Dubai-based yacht fit-out specialist, recently secured its largest per volume and value contract to date with the fit-out of 740m2 of a 141m luxury motor yacht currently under construction in Abu Dhabi. Vedder already has a strong working relationship with Pino Meroni. This acquisition will unlock significant synergies for the Depa group by leveraging Vedder’s German project management expertise and European market positioning, and Pino Meroni’s competitive cutting-edge manufacturing facilities. Following this acquisition, Depa will become one of the largest and leading yacht interior specialists in the world.

Mr. Mohannad Sweid, CEO of Depa, commented:

“We welcome Vedder to the Depa family, where it will continue to build on its market leadership, unique heritage, and exceptional brand in the marine world. This acquisition is very much in line with our strategy of acquiring specialist, market leading companies in niches areas of interior contracting and procurement. The market for yacht fit-outs is growing strongly and there is currently a three year waiting list for luxury yachts worldwide.”

Mr. Kilian Vedder, Managing Director of Vedder, commented:

“We are delighted to be joining the Depa family, which will provide us with the strategic support to continue to build on the Vedder family’s long tradition of delivering world-class yacht interiors to our esteemed clients.”

Mr. Hadi El Solh, Depa’s Managing Director, Investments, said:

“Formalizing this relationship will enable Depa to develop a much stronger position in the international luxury yacht fit-out sector. By leveraging Depa’s global reach, high-end client networks, and Pino Meroni’s facilities, the Vedder acquisition will unlock significant synergies benefitting both organizations.

The international luxury yachting sector is experiencing significant growth, and Germany, which is Vedder’s primary market, is the fourth largest market globally in terms of luxury yachts under construction this year*. The 2008 Global Order Book, an annual report on the international yacht industry, estimates that approximately 916 new yachts measuring 80 feet or longer were under construction or were scheduled for construction at shipyards throughout the world back in September 2007. This represents a 17.9 percent increase on the year before. The Global Build Report, an annual survey of the world's shipyards, estimated that luxury yachts under construction in 2007 were worth a total of $18.4 billion.

Yacht fit-out requires highly skilled technicians specially trained in the manufacture and installation of marine joinery and sophisticated lightweight cladding. Both Pino Meroni and Vedder staff are highly skilled and experienced in the specialised techniques required to carry out interior fit-out projects on yachts of varying sizes and types, which must be designed and built to unique and complex contours and specifications.

*International luxury yachting: economic report 2005/2006 - 16th Monaco Yacht Show 2006

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Enquiries:

Depa Ltd                                                                                             +971 4 224 3800
Noor Sweid, Managing Director, Strategy

Brunswick Gulf Ltd                                                                             +971 4 365 8260
Rupert Young / Azadeh Varzi

About Depa Limited:

Depa Limited is the largest interior contractor in the world. Operating principally in the luxury fit-out industry, its main areas of business cover hospitality, high-end residential properties, retail outlets, yachts, as well as public sector amenities such as airports, hospitals and transport systems. Depa is listed on the Dubai International Financial Exchange (ticker DEPA) and has Global Depositary Receipts on the regulated market for listed securities of the London Stock Exchange plc (ticker DEPA and DEPS).

The range of business activities performed by Depa comprises:

·         Interior contracting: which focuses on luxury interior fit-out services, which include installation and finishing of floors, walls, ceilings and fixed joinery;

·         Manufacturing: which comprises a network of factories and joineries which produce customised furniture, fixtures and equipment (FF&E) for Depa itself and the wider market;

·         Procurement: which involves the procurement of supplies and materials from third parties to support and complement Depa's interior contracting and manufacturing operations as well as third party procurement contracts for specific FF&E projects.

By integrating these services into a single package, Depa provides clients with comprehensive and customised interior contracting solutions.

With more than 8,000 employees worldwide, the company operates through an integrated network of subsidiaries, affiliates and representative offices located in the UAE, Saudi Arabia, Qatar, Egypt, Jordan, Syria, Libya, Morocco, India, Malaysia, Thailand, China, Singapore, UK, the Netherlands, and the United States. Through this network, Depa has successfully executed large and complex projects in over 16 countries including the Burj Al Arab Hotel (Dubai), Emirates Palace (Abu Dhabi), the Museum of Islamic Art (Doha), Four Seasons Hotels (Sharm El Sheikh & Mumbai) and Atlantis Resort (Marrakesh and Dubai).

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