Al Sawadi Investment & Tourism Company LLC Completes Phase One Financing for The Blue City, Oman.

AL SAWADI, Oman -- Al Sawadi Investment & Tourism Company LLC (ASIT) announces the completion of the phase one tranche of its financing for Al Madina Al Zarqa - The Blue City, Oman - one of the largest urban development projects in the Gulf.

$925m was raised from international investors. The funds will be used to finance the first phase of construction of the 34 sq km coastal development which will start in November 2006. Oppenheimer Investments is the financial adviser to the Al Sawadi Investment & Tourism Company and appointed Bear Stearns as lead arranger.

Saleh H. A. Miri, CEO of the Al Sawadi Investment & Tourism Company said, "We have taken the first major step in the financing of this magnificent metropolis by the sea. Using an innovative variety of financing techniques, including whole business securitisation, traditional secured real estate lending, project finance and credit enhancement, we have reached investors across the world who see that Al Madina Al Zarqa - The Blue City - is a vision made real.

"Working with our financial advisers Oppenheimer Investments and the arranger, Bear Stearns, we see this as a benchmark example of international investment and interest in the Middle East."

The Blue City is centred at Al Sawadi on the Omani coast some 90 kilometres northwest of the capital Muscat. It is expected to take approximately 20 years and about $20 billion to complete over several phases.

In every respect, the Blue City will have the scenic beauty of an international resort coupled with the dynamism of one of world's truly great cities. This splendid new jewel in the Omani crown promises to deliver one of the most unique and sought after living environments in the gulf; and indeed the world.

Its future as a magnet for tourism and all round business investment will go hand in hand with an enduring appeal to its cross section of local and international residents. The impact of the Blue City in the development of Oman's economy as well as the creation of much needed employment will certainly be one of the most important aspects of this visionary project.

The Blue City is designed to attract over two million tourists a year to its facilities and its upscale hotel accommodation, just 30 minutes by road from the country's international airport.

"We are extremely honoured to be involved in this spectacular project," added Samuel Grossmann, Global Chief Executive of the Oppenheimer Group of Companies. "This bond issue is a major step in bringing the vision of Blue City to a reality. We look forward to continuing the work with the Al Sawadi Investment & Tourism Company towards the completion of this project."