Abu Dhabi Investment Company Forms Over $400 million Fast Containership Line, Abu Dhabi Container Lines Ltd. -ADCL-.

ABU DHABI, United Arab Emirates--(BUSINESS WIRE)--Nov. 30, 1999--

Abu Dhabi Investment Company (ADIC) announces the formation of Abu Dhabi Container Lines Limited (ADCL) with Norasia Shipping Limited, Switzerland. ADCL will operate a fleet of 10 fast containership vessels servicing Asian ports and the Pacific Northwest of the United States and Canada.

ADCL will acquire ten "state-of-the-art" 25 Knot fast container vessels. Seven of the vessels have been delivered while the remaining three will be delivered between January and July 2000. Commercial and technical operations of the fleet are contracted with subsidiaries of Norasia. These vessels have proven their capabilities by establishing record transit times on the North Atlantic between Montreal and Europe and recently on the Pacific between Asian Ports and Vancouver. With the delivery of the eight vessels, ADCL will provide weekly services from Asian Ports to the Pacific Northwest (Seattle, Vancouver) and the Pacific South West (Oakland, Long Beach).

The total fixed assets and working capital of ADCL are in excess of $400 million. Al Suffun Holdings, a wholly owned subsidiary of ADIC will hold 51% of ADCL. ADIC anticipates to privately place ADCL shares held by Al Suffun to UAE institutions and strategic investors.

Operating from its headquarters in Abu Dhabi, the capital of the United Arab Emirates, ADIC is a public limited liability company that specializes in providing investment and corporate finance advisory services.

Owned by Abu Dhabi government institutions, ADIC is one of the leading Gulf-based financial banks. Volumes in ADIC's dealing room, which is believed to be the largest in the region reach up to $2 billion a day. Earlier in the year, ADIC arranged a $121 million private equity investment in Teledesic, LLC.

"We share Norasia's optimism about the future of higher speed cargo services," said Hareb Al Darmaki, Chairman of ADIC. "We view this investment in ADCL as a positive step in an exciting niche market opportunity."

Hans Steiger, Chairman of the Norasia Group, stated, "The new company will benefit from the strategic counsel and financial strength of ADIC, its investors and the established network and technological know-how of Norasia. Together, we shall realize our vision to make ADCL a world leader in fast maritime transportation with a fleet of containerships capable of speeds of 25 KN, 32 KN and 40 KN to meet the worldwide demand in regional and international trades."

H.E. Sh. Hamed Bin Ahmed Al-Hamed, Deputy General Manager of ADIC said, "The strategic importance of ADCL in terms of being the first UAE flagged containership line and showcasing the development of UAE technology are expected to bring significant financial returns to our investors." H.E. Sh. Hamed also added, "The important niche market that ADCL intends service in fast maritime transportation also is expected to deliver significant benefits to its customers."

"ADCL will leverage the Port of Mina Zayed services, considered amoung the best in the region, and will continue to secure Abu Dhabi's position as an important regional and international trade center," H.E. Sh. Hamed said.

Industry experts are convinced that the cargo volume requiring faster transit will grow much stronger in the next decade than the average world container trade. Global markets and Electronic-Commerce via internet will create new trades with transit times close to the speed of air cargo and costs closer to traditional sea cargo.

Norasia will meet this requirement through the new design of fast and efficient monohulls, capable of speed up to 32 KN and the patented Pentamaran hull type for higher speeds. All of above designs can achieve the required speed at substantial lower power installations and consequently lower fuel costs than traditional containerships.

Abu Dhabi will serve as headquarter of Abu Dhabi Container Lines Limited and the Port of Mina Zayed will be used as a logistic and distribution center for the UAE and other Arabian Gulf destinations.