Regional turnover in kitchens and wardrobes furniture expected to double annually

Dubai, UAE, 9 June, 2008: Al Khayyat Investments L.L.C., a Dubai-based diversified holding company, has acquired 50 per cent stake in ALNO Middle East (AME), a producer of kitchens and wardrobes furniture in the Jebel Ali Free Zone, to further accelerate the company's growth as equal partners.

The new development will further strengthen the ALNO international brand leveraging Al Khayyat's network and experience. It is projected that AME's turnover will double annually in the medium term.

"In Al Khayyat Investments we have found the ideal partner for our strategy of dynamic growth in the booming markets of the Middle East," said Dr. George Kellinghusen, CEO ALNO AG. "We will be leveraging the market expertise and business connections of our new partner to further consolidate the world-renowned ALNO brand. The Middle East represents a big market for our range of kitchens and wardrobes furniture."

Both parties have agreed to keep the purchase price confidential. Both partners will make significant investments up to the end of 2009 in order to expand capacities at AME. The number of employees will increase from the current 122 to 195 by the end of 2009 as a result of this expansion.

Amer Al Khayyat, Managing Director, Al Khayyat Investments, said: "We foresee tremendous demand for the ALNO brand of kitchens and wardrobes as the construction boom across the region continues unabated.  Demand for upmarket products for the home has been rising dramatically over the past few years, and we expect it to increase at a faster rate over the short-term."

Al Khayyat also plans a new joint venture to sell ALNO kitchens through lead shops it plans to open in Dubai first, and expanding later to the other emirates. ALNO and Al Khayyat will thus synergize their expertise to meet the rapidly growing demand in the region.

Al Khayyat Investments, a holding company based in Dubai, is active in the development of large real estate projects, and the company also has a strong presence in the retail sector in the Middle East. Al Khayyat also has significant interests in pharmaceuticals, medical equipments, cars, leasing, landscaping and education. Al Khayyat Investments has an extensive network, and maintains excellent business connections with major government and private companies in the region.

AME, earlier a wholly owned subsidiary of ALNO AG, has been producing kitchens and wardrobes furniture in the Jebel Ali Free Zone near Dubai since 2005. AME services markets throughout the Middle East from its Dubai location.

The company already holds a strong position in this market. Recently, AME won a bid for supplying over 4,000 kitchens in the "Motor City" and "Jumeirah Village" districts, currently under construction. AME is supplying 2,200 kitchens and 3000 wardrobes to the "Bavaria Tower". Exclusive apartments such as the penthouses in the 'Jumeirah Beach Residence" and the "Villa" are also being equipped with high-quality, individual kitchens by AME.

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For more information, please contact:
Mirvat Zeid
Virtue Marketing Consultancy
P.O.Box 191931, Dubai, United Arab Emirates
Tel: +9714 2637760
Fax: +9714 2637780
Mobile: +97155 9281414
Email: mirvat@virtuemena.com

© Press Release 2008