13 April 2008

Future Pipe Industries Group Limited (FPI) announces launch of IPO on DIFX

Future Pipe Industries Group Limited, the Dubai based global leader in the development, manufacture and supply of fiberglass pipe systems, today published its preliminary prospectus as well as a summary document and application form for its UAE retail offer and announced an indicative price range of $5.00 to $6.60 per share for up to 35% of its shares in its initial public offering (IPO) on the Dubai International Financial Exchange (DIFX).

Up to 84.0 million shares, including an over-allotment option of up to 12.0 million shares, will be offered to investors globally. The price of FPI's shares will be denominated in US dollars and will be priced through a global book building process with institutional investors. Retail and institutional investors will pay the same price for FPI's shares, which is expected to be announced on or about 30 April 2008.

FPI, founded by the Makhzoumi family, has become the global leader in the large diameter fiberglass pipe industry with operations spanning four continents and servicing clients in over 50 countries. FPI has pioneered the use of fiberglass in the large diameter pipe market and provides pipe systems for some of the world's largest development projects including Ras Laffan Industrial City in Qatar and the Dubai World Central Airport.

FPI highlights include:

• FPI is the global leader in large diameter fiberglass pipe systems servicing the oil & gas, water distribution, infrastructure & municipal, industrial, petrochemical, and desalination & power markets;

• FPI believes it has the world's most comprehensive portfolio of fiberglass pipe products, which enables it to provide fiberglass pipe solutions across most industry sectors;

• FPI currently operates 11 factories and a global network of sales offices;

• for the year ended 31 December, 2007, FPI's sales and EBITDA were approximately $556.4m and $87.6m, respectively. Sales derived from FPI's factories in the GCC in 2007 accounted for approximately $422.5m;

• FPI's share of the global large diameter fiberglass pipe market for 2007 is estimated at 11.6%;

• FPI has a leading market position in the GCC where demand for large diameter fiberglass pipes is estimated to have grown annually by 16.5% between 2001 and 2006, exceeding the annual growth rate for global large diameter fiberglass pipes which grew at 12.1%; and

• between 2005 and 2007 total group sales grew by 50.6%, primarily driven by strong growth throughout the GCC.

The intention to float up to 35% of FPI was announced on 30 March 2008. The IPO will be in the form of a sale of shares by Future Management Holdings S.A, the sole shareholder of FPI, which is wholly-owned by the Makhzoumi family. Future Management Holdings S.A. will retain majority ownership of the company.

Commenting on the announcement, founder and Chairman of FPI, Fouad Makhzoumi said:

'FPI has come a long way since we founded the company in 1984. I believe this IPO will be one of the most important milestones in our history and, as a Dubai based company that has grown with the Emirate, I am delighted that through this offer, we will be able to share our exciting future with investors from the UAE and the GCC.'

President and CEO of FPI, Rami Makhzoumi remarked:

'Pipes are the veins and arteries of civilization, delivering essential resources such as water, oil and gas to the world. Governments and nations simply do not have a choice but to invest in pipe systems. The world pipe market in 2006 was estimated to be worth over $120bn, 80% of which can be addressed by fiberglass as a pipe material. Fiberglass currently accounts for only 5% of that addressable market and this is where FPI's long-term growth opportunity lies.'

'Core to our strategy, therefore, is our ability not only to continue to grow FPI's share of the world fiberglass pipe market but also to convert customers and end users to fiberglass usage. Our mission is to convert the world to fiberglass. We aim to achieve long-term growth by enhancing our market share, through organic and non-organic growth, continuing to position fiberglass as a superior alternative to other, more traditional, pipe materials and growing the addressable market through further investment in technology, research and development.'

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Lebanon Time-Line

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The rejuvenation of the Beirut Central District is one of the largest, most ambitious urban redevelopment projects ever undertaken. Travellers will find the excitement surrounding this and other developments and designs palpable - and very infectious.

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