The Investment Proposition

• Lamprell has played a prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gas industry. Lamprell's three primary facilities are in Port Khalid and the Hamriyah Free Zone, both of which are in the Emirate of Sharjah in the UAE, and in the Jebel Ali Free Zone, in the Emirate of Dubai, also in the UAE. Further afield, Lamprell has recently expanded into Thailand, through the Sattahip Facility, in response to customer demand to refurbish jackup rigs which will be required to operate in the region.
• Lamprell was successfully listed on AIM in October 2006 and grew significantly, winning the "Best Newcomer to the AIM Market" award in 2007.
• Lamprell moved to the Official List of the London Stock Exchange in November 2008.
• Lamprell has grown strongly over the last three years, driven by buoyant conditions in the oil and gas industry and the increase in capacity with the opening of the Hamriyah Facility in 2007. Revenues have more than trebled between the years ended 31 December 2005 and 31 December 2008, increasing from US$209 million to US$741 million, respectively. In this period, adjusted* operating profits have also increased by approximately 220 per cent, resulting in adjusted* net profits attributable to shareholders increasing from US$29.8 million to US$95.5 million. Since its listing on AIM, Lamprell has also seen greater visibility in its forward order book as a result of the increasing number of new build construction projects, which tend to be longer-term fixed sum contracts. As at 31 December 2008, the Group's forward order book was US$600 million extending out to late 2010.

*Adjusted net profits are, in each case, adjusted to reflect exceptional charges for share based payments granted to certain Directors and selected management personnel in the financial years ended 31 December 2006, 2007 and 2008; and also reflecting other costs relating to the AIM listing in the financial year ended 31 December 2006 and costs relating to the move to the Main Market of the London Stock Exchange in the year ended 31 December 2008.