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Aamal Company QSC ('Aamal') Financial Results for the quarter ended 30 September 2010

Earnings per share up 33% to QAR 0.12

Sustaining the strong positive momentum with

significant growth in both revenues and underlying profits

Doha, 23 October 2010 - Aamal Company QSC ( Aamal ), one of the GCC's fastest growing diversified conglomerates, today announces its third quarter financial results for the period ended 30 September 2010.

Financial Highlights

• Revenue up 58% to QAR 259.6m (Q3 2009: QAR 164.1m; 9m 2010: QAR 826.5m)
• Net profit* up 39% to QAR 58.6m (Q3 2009: QAR 42.1m; 9m 2010: QAR 168.2m)

• Net profit margins decreased to 22.6% (Q3 2010: 25.7%) but on an improving trend compared to the 19.3% reported for the six months to 30 June 2010
• Low financial gearing** at 20.6% (30 June 2010: 12.1%)

• Reported earnings per share up 33% to QAR 0.12 (Q3 2009: QAR 0.09)

• Net investment in capital expenditure of QAR 38.1m (Q3 2009 QAR 118.0m)

* There were no fair value gains on investment properties in either Q3 2010 or Q3 2009

** Net debt to net debt plus equity

Operational Highlights

• Significant capital investment to date now beginning to reap rich dividends

• 2 stand outs are Doha Cables and El Sewedy Cables Qatar , both of whose performances have made significant contributions to the results.

Sheikh Faisal Bin Qassim Al Thani, Chairman of Aamal commented:

"I am very pleased to report another strong set of results from Aamal Company as we have managed to sustain the momentum of the first half into Q3. I am also especially pleased with the performance of our cable businesses ( Doha Cables and El Sewedy Cables Qatar ) which have continued to deliver particularly strong results.

"As we move into the final quarter of the year, we expect our strong performance to continue as our diversified business model gives us excellent exposure across the different growth sectors of the rapidly developing Qatari economy and we are very well positioned to benefit from Qatar's demand for increasingly sophisticated products and services."

DIVISIONAL REVIEW

All Figures in QARm and before deduction of Head Office costs and inter-divisional revenue

PROPERTY MANAGEMENT & DEVELOPMENT

Branches in this division comprise City Center Doha and Aamal Real Estate

QAR m	Q3 2010	Q3 2009	%
Revenue	49.8	46.9	6.2
Net Profit	38.0	33.0	15.2

The occupancy rates at both City Center Doha and Aamal Real Estate are at an all-time high of 95% (Q3 2009: 93%), reflecting both the premium quality of their brands and the underlying Qatari economy. Rents continue to grow, reflecting the annual uplifts that are incorporated into the leasing contracts. City Center Doha currently has 434 retail units.

It is anticipated that Aamal Real Estate will complete the construction of a residential compound (with 45 units) by the year end.

TRADING & DISTRIBUTION

Branches in this division include Aamal Trading & Distribution, Ebn Sina Medical, Aamal Medical, Bottega Verde and Foot Care Center

QAR m	Q3 2010	Q3 2009	%
Revenue	78.7	80.5	(2.2)
Net Profit	11.2	11.2	-

The principle reason for the slight drop in revenue is the summer season and other seasonal factors. Gross margins for the division have improved slightly to 14.2% (Q3 2009: 13.9%).

The future is very bright for this division with the opening of several new large hospitals and medical centres in the next few years.

INDUSTRIAL MANUFACTURING

Branches and subsidiaries in this division include Aamal Readymix, Aamal Cement Industries, Senyar Industries Qatar Holding ( Doha Cables and Elsewedy Cables Qatar ), and Advanced Pipes and Cast Company

QAR m	Q3 2010	Q3 2009	%
Revenue	107.7	23.8	352.5
Net Profit	5.7	3.3	72.7

This division has seen significant growth in its revenue due to the start of commercial production at Doha Cables in May 2010, the acquisition of a 49% stake in El Sewedy Cables Qatar through an Aamal subsidiary Senyar Industries Qatar Holding, which took effect at the beginning of 2010 and the start of commercial production at Aamal Cement Industries in January 2010.

Operating margins have fallen from 13.9% to 7.9% due to the start-up costs of the ventures outlined above. As these are one-off in their nature, we expect margins to recover going forward. All the subsidiaries and branches within this division enjoy strong market positions, thereby enjoying a degree of pricing power and the ability to offer a superior level of customer service.

MANAGED SERVICES

Branches and subsidiaries in this division comprise Aamal Travel & Tourism, Aamal Services and ECCO Gulf

QAR m	Q3 2010	Q3 2009	%
Revenue	15.3	6.4	142.9
Net Profit	3.9	1.9	105.3

-Ends-

ECCO Gulf, a JV with ECCO Outsourcing (a leading Egyptian contact centre and Business Processing Outsourcing services provider) in which Aamal has a 51% interest, commenced operations in February of this year. Aamal Services has expanded into lower margin activities, a strategic move in order to increase the attractiveness of Aamal Services's customer offering through providing a fuller range of services and thereby becoming the first point of call for a wider range of potential clients. These two factors have been the principal reasons for the significant growth in revenue for the division, where operating margins have fallen from 29.7% to 25.5%.

Summary and Outlook

"We are delighted to be reporting another very strong set of results, with turnover growing by 58% and earnings per share up by 33%. I believe that this is testimony to our business model which gives investors the opportunity to have high quality exposure to the Qatar growth story through occupying strong market positions in key diversified business sectors, a strategy designed to optimise returns whilst minimising risk.

"All of our businesses have been performing very well this quarter. We are committed to our strategy of creating a solid industrial base by attracting first class partnerships where we can ally technical expertise brought in from outside Qatar to our knowledge of the local Qatar market, a market that presently is the fastest growing in the world and has the highest GDP per capita. Aamal Company is particularly well positioned to benefit from this growth and it is this that gives us great confidence for the future. We will of course continue to keep a clear focus on returns on present capital and discipline with respect towards future capital allocations, coupled with prudent financial management of the operational cost base."

About Aamal Company QSC
Aamal Company QSC (' Aamal ') is one of the GCC's fastest growing diversified conglomerates, delivering a CAGR in net profit, excluding fair value gains, of 22% p.a. from 2006-2009 and generating revenues of QAR 705m (US$194m) in 2009. Focused on sustained, profitable growth and strongly diversified for balanced exposure across Qatar's growing economy, Aamal 's operations comprise of over 18 business units with market leading positions in the key property management and development, industrial, retail, managed services, medical equipment and pharmaceutical sectors. Listed on the Qatar Exchange, Aamal is one of the largest diversified conglomerates listed on the Qatar Exchange by market capitalisation.

Further enquiries
Aamal Company
Arwa Goussous,
Corporate Communications Manager
+ 974 5513 9539

Citigate Dewe Rogerson
Andrew Hey / Seb Hoyle / Nick Cox-Johnson
+974 4452 8335

Ayman Hammamieh / Habib Bacha (for Arabic media)
+971 (0)2 401 2612

© Press Release 2010