Kuala Lumpur, 17 June 2009: UEM Land Berhad, the master developer of Nusajaya, has today announced that the Sale & Purchase Agreement (SPA) with DAMAC Properties (Malaysia) Sdn. Bhd. has lapsed following the parties’ failure to resolve issues relating to the conditions precedent to the SPA within the agreed period.

UEM Land Berhad, in June last year, entered into a conditional SPA valued at RM397 million with DAMAC Properties (Malaysia) Sdn. Bhd., a subsidiary of DAMAC Properties LLC, the real estate development unit of DAMAC Holdings, head quartered in Dubai, UAE, for DAMAC to purchase three (3) parcels of commercial land totalling approximately 43.6 acres that forms part of Puteri Harbour, the eminent waterfront development in Nusajaya, Iskandar Malaysia developed by UEM Land.

UEM Land and DAMAC had been in discussions on certain issues relating to the conditions precedent. However, the parties have not been able to come to an agreement on these issues and the parties have now agreed for the SPA to be terminated.

Wan Abdullah Wan Ibrahim, UEM Land Holdings Berhad’s Managing Director & Chief Executive Officer said, “The termination will have no impact on our financial results as the expected revenue from this proposed transaction has not been recognised in our accounts.”

“Given the current global economic conditions and its impact on many companies and countries including those in the Middle East, we felt that there is no point in pursuing the matter and that a termination of the SPA was in UEM Land’s best interest. Our aim is to accelerate the momentum of development and investment in Puteri Harbour. The foundation has already been laid and we have received strong interests from potential investors to partner us in developing the area. We are confident to conclude some of these deals in the near future.”