Cairo, June 8th 2008 - As part of Palm Hills Developments’ (PHD) strategy to expand regionally, the Egyptian premier real estate developer has entered into a partnership agreement with one of the leading Saudi Arabian groups in the fields of construction and real estate to establish a Saudi Joint Stock company where Palm Hills will own 51% with primary investments estimated at around EGP 3 billion.

“This partnership marks a significant milestone for PHD in implementing its strategy for regional expansion through the establishment of integrated communities in the MENA region, “said Mr. Yasseen Mansour, Chairman and CEO of PHD. “We look forward to replicating PHD’s successful business model in other countries where the need for luxurious, fully integrated developments is high. Relying on our long history in the Egyptian market and strong infrastructure, that has enabled us to implement successful projects in Egypt, we believe we are able to provide the same quality communities to our Saudi counterparts,” he added.

The partnership entails the acquisition by the newly-formed company of 6.7 million square meters of land in Saudi Arabia, 3.7 million square meters of which will be in Riyadh, located 12 km away from the city center on the north west, while the remaining three million square meters will be in Jeddah, located eight km north of Jeddah International Airport and approximately three km east of an exclusive private beach.

Mr. Yasseen Mansour was quick to praise the Saudi market, stating that this regional partnership will be an added value to PHD’s portfolio of projects all of which have reached an impressive 47.7 million square meters. This partnership will also add an edge to the domestic market of KSA.

About Palm Hills Developments

The market value of PHD’s properties as at 1st March 2008 has been independently valued by CB Richard Ellis (CBRE) at LE 19.5 billion (US$3.5 billion).

Palm Hills Developments shares are listed on Cairo & Alexandria Stock Exchange (“CASE”) under the symbol PHDC.CA and on London Stock Exchange (“LSE”) under the symbol of PHDC.

The company has acquired large parcels of land in strategic locations throughout Egypt and has one of the largest land banks held by any developer operating in the Egyptian market consisting of over 47 million square meters of land.

Of the Company’s 22 projects, five are under construction and a further 12 entered the planning phase.

Development land locations include: 6th of October City, west of Cairo; New Cairo City, east of Cairo; the North Coast on the Mediterranean Sea; the City of Alexandria, two locations on the Red Sea coast and Aswan