Depa Limited:Q3 2011 Trading Update

•           Backlog jumps to record high of AED 3.9 billion

•           Company signs the largest contract in its history

Dubai, 24 October 2011 : Depa Limited (ticker DEPA) (‘Depa’ or ‘the Company’), one of the world’s leading interior contracting companies, today issued the following trading update for the third quarter ended 30 September 2011.

During the third quarter, Depa has seen a significant pick-up in business with projects which had been delayed, especially in the MENA region, now being signed into backlog. The Company signed AED 1.6 billion of new contracts boosting its backlog by 70% to a record high of AED 3.9 billion from AED 2.3 billion, as of 30 June 2011. Whilst this stream of new business vindicates Depa’s diversification strategy in recent years, it will take time to flow through to revenue and profits. This means that 2011 financials will remain close to forecast which was revised at the half year stage with increased income coming through in 2012’s numbers.

The AED 929 million contract – Depa’s largest contract ever signed – is for the complete fit-out of the 27 lounges at Doha’s new international airport. Lindner Depa, the Company’s joint-venture, which specialises in infrastructure projects, will undertake the one year contract with immediate effect. 

Commenting on the period, Mr. Mohannad Sweid, CEO of Depa, said: “We are encouraged by the amount and diversity of new business signed during the quarter, a direct reward for pursuing our core strategy of diversification combined with more stringent project selection. Despite European economic concerns and political uncertainty across many Arab countries, government spending, especially in the Gulf, continues to drive our backlog to its highest level ever and favourably positions the Company for the coming months giving us strong visibility on future revenue.”

Commenting on the Doha International Airport contract, Nadim Akhrass, Managing Director, Operations, Depa said: “This very significant contract; the largest we have ever won, is in line with our strategy of increasing the proportion of revenue from major government-funded infrastructure projects. Our deal momentum in this sector has been strong and follows on from our recent AED 109 million contract for interior work at the new international terminal at Mumbai International Airport. This new contract also comes hard on the heels of the AED 375 million project we recently announced, for work on the architectural finishes at the King Abdullah Petroleum Studies & Research Centre in Riyadh, Saudi Arabia.”

The Company also entered the Qatar hospitality market through a major contract for both the interior fit-out and supply of furniture, fixtures and equipment (FF&E) of all 324 guest rooms and public areas of the Ramada Plaza, Doha. The contract is valued at AED 52 million and is to be completed by October 2012.

Design Studio, Depa’s Singapore and Exchange-listed subsidiary, recently reported its half year results with a 25% revenue increase and 30% jump in net profit; a strong order book of S$150 million, as of 10 August 2011, and a strong balance sheet of S$36 million in cash. Malaysia, in particular, is proving a strong source of new growth and work is on-going at the Grand Hyatt Hotel and Lanson Palace in Kuala Lumpur as well as on a number of smaller projects.

Depa’s new factory in Guangzhou Province, China is on track to start production imminently. It will support Design Studio’s manufacturing requirement helping Depa cater to the growing Chinese domestic demand for high-end interiors.

Finally, in Europe and the UK, Depa has won significant FF&E projects for private residences in both Central Paris and Central London

Top Backlog Projects List – 30 September 2011

- Ends -

For further inquiries, please contact:

Depa Limited

Noor Sweid

Managing Director, Strategy

Tel: +971 4 224 3800

strategy@depa.com  

Brunswick Gulf Ltd

Rupert Young / Jade Mamarbachi

Tel: + 971 4 446 6270

depa@brunswickgroup.com

About Depa Limited

Depa Limited is a leading interior contracting company in the Middle East, North Africa and Southeast Asia regions. Operating principally in the luxury fit-out industry, its main areas of business cover luxury hotels, infrastructure and public sector amenities such as hospitals and airports, high-end residential properties, retail outlets, as well as yachts. Depa is listed on the NASDAQ Dubai (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, fixed joinery, panelling, wood-works, doors and frames;

•           Manufacturing: which comprises a network of factories and joineries which produce customized furniture, fixtures and equipment (FF&E);

•           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 customized interior contracting solutions.

With more than 9,000 employees worldwide, the company operates through an integrated network of subsidiaries, affiliates and representative offices located in the UAE, Saudi Arabia, Qatar, Egypt, Jordan, Morocco, Azerbaijan, 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 Mazagan Resort (El Jadida).