Dubai, Sept.12th,2007 (WAM) -- Emirates Extruded Polystyrene(EEP), a joint venture company of Dubai Investments and FarhaBrothers of Cloisall Co. LLC, was inaugurated today byKhalid Kalban, Chairman, EEP Board of Directors, and ManagingDirector and CEO of Dubai Investments. The operations of EEPwould be supervised and monitored by Dubai Investments Industries,which is a wholly owned subsidiary of Dubai Investments.

The new plant commenced commercial production of extruded polystyrenesheets (XPS) in the first week of September 2007 after a successfultrial run and commissioning, infusing a fresh annual supply of2,500 metric tons of XPS to the UAE and GCC markets. EEP's entryis poised to help address the predicted sharp surge in demandfor insulation materials within a six-year period ending 2012,spurred by the region's large-scale construction boom.

"Emirates Extruded Polystyrene has been established in supportof the UAE and the rest of the region's rapid economic growth.

Our extruded polystyrene sheets are produced according to thehighest quality standards, ensuring excellent performance inany construction project," said Khalid Kalban.

"Emirates Extruded Polystyrene has invested in top-of-the-linetechnology and management practices, and boasts a highly qualifiedstaff to maintain the excellent quality of our products and productionprocesses," added Kalban.

EEP manufactures XPS under the brand name E-FOAM, whose mainapplication is for heating insulation, anti-impact material andmajor construction elements. Other EEP brands are E-Roof, E-Walland E-Floor.

Demand for insulation material in the GCC during the period 2006-2012is expected to top 1.075 million cubic meters, or equivalentto 37,627 tons. The strong demand has been boosted by a UAE FederalLaw that enforces the use of energy-saving and environment-friendlybuilding materials in the construction industry, which has madeXPS mandatory for the insulation of roofs, walls and foundations.

"Emirates Extruded Polystyrene has secured environmental compliancein all stages of production, with all residual matter from the manufacturing process recycledwith the original raw materials to achieve zero wastage. It isour pleasure to help the region grow economically, and also promoteenergy-efficient and sustainable means of development," saidKalban.

EEP is gearing up for a robust market performance after signingan Off-take Agreement with Cloissal Co. for offtake of 50 percent of the manufactured products. Other reputed local and internationaldealers have also approached EEP to strike long-term deals.

With strong growth prospects, EEP has prepared an early expansionplan, aiming to add a second production line that will significantlyincrease total output of the EEP plant, which sits on a 6,235-squaremetre plot in Dubai Investments Park.

Dubai Investments owns 51 per cent of EEP shares, while FarhaBrothers of Cloisall Co. LLC has an equity participation of 49per cent.