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Makkah & Madinah Holdings (MAMP)

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Wednesday 25 September, 2013

Makkah & Madinah Holdings

Interim Financial Results


                       MAKKAH & MADINAH HOLDINGS LIMITED                       

                           ("MMH" or the "Company")                            

 Interim Financial Results for the Period from 1 January 2013 to 30 June 2013  

                              Highlights for 2013                              

  * Carrying value of Makkah & Madinah Holdings Limited ("MMH") investment in
    Makkah & Madinah Commercial Investment Co. ("MMCI") at 30 June 2013 was
    $459.25 million; an increase of $59.25 million (15%) since acquisition in
    May 2012.
   
  * MMH's comprehensive income for the six months period ended 30 June 2013 was
    $19.00 million compared to $2.24 million in the comparative period of 2012.
   
  * MMCI's net asset value on 30 June 2013 was $2.06 billion compared to $1.84
    billion on the date of MMH's acquisition of the 34.12% stake.
   
  * MMCI acquired a further stake in the Jebal Al Noor Company increasing its
    total interest in the Jebal Al Noor land asset from 49.5 per cent to 99.5
    percent.
   
                             CHAIRMAN'S STATEMENT                              

Introduction

I am pleased to present Makkah & Madinah Holdings Limited's (the "Company",
"Group" or "MMH") financial results for the first half of 2013. These results
have not been audited but have been reviewed by the Company's auditor. These
continue the positive trend begun in the same period of last year and during
the second half of 2012; the outlook for the real estate and development market
in Saudi Arabia remains promising.

Financial Results

Comprehensive income for the six month period ended 30 June 2013 was $19.00
million (H1, 2012: $2.24 million), giving rise to diluted earnings per share of
1.3 US cents (H1, 2012: 0.2 US cents). This income derived mainly from the
$18.89 million contribution of profits attributable to its associate, Makkah &
Madinah Commercial Investment Company JSC (MMCI), of which MMH currently owns
34.12%.

An increase in the value of MMH's investment in MMCI by 15 percent to $459.25
million resulted in net assets standing at the end of the period at $458.72
million (H1, 2012: $401.40 million); or US cents 36 per share (H1, 2012: US
cents 32 per share).

Review of the Company's Activities

In 2012, when the Company evaluated certain regional markets to focus its
investment strategy, the Saudi Arabian market appeared to have strong
fundamentals, with a fast growing population and increased demand for housing,
strong upward trend in tourism and significant backing from the government to
develop its infrastructure and services. This view appears to have been
vindicated by increases in earnings and the asset value of the investment in
MMCI.

In light of the proposed development plans for the land of 128,391.70 m2 at
Jebal Al Noor owned by Jebal Al Noor Company, MMCI took a commercial decision
during the period under review to increase its stake from 49.5% to 99.5% in
Jebal Al Noor Company, allowing MMCI to gain control over this iconic
development, which is at the foot of the Ghar Hera mountain near Makkah.

The Group continues to evaluate new investment opportunities, including that of
potentially increasing its investment in its present associate company, MMCI.

Significant management effort during the recent period has been devoted to
identifying a suitable alternative forum for listing, to increase its
visibility to a wider investor base and to address the restricted liquidity
which has characterised trading in the Company's shares to date on the ISDX
Growth Market.

During the last six months, the Company has progressed with this process and
has maintained regular dialogue with the relevant listing authorities through
its financial advisers.

Current Trading and Outlook

The performance of MMCI in which the Company has an investment, during the
second half of 2013 to date is in accordance with the Directors' expectations.
The Directors and the executive management team continue to focus on
determining the optimum solution to increasing the Company's profile and
improving liquidity in the market for its shares. They remain committed to the
objective of positioning Makkah & Madinah Holdings on a platform, which will
support its future growth as a prominent, Shari'ah-compliant real estate
investment company.

Conclusion

I look forward to communicating with shareholders as appropriate to inform them
of progress with the matters discussed above and to presenting in due course
the financial results for the full year 2013.

I would like to convey my sincere gratitude to all shareholders for their
continued support, and to our management and the Board, as we continue to build
this strong foundation for the Company.

Chairman

Dr. Noor Aldeen S. A. Atatreh

25 September 2013

                               COMPANY OVERVEIW                                

Makkah & Madinah Holdings Ltd (the "Company" or "Group" or "MMH") is a
registered offshore company incorporated in the Commonwealth of Bahamas under
registration number 148728B.

The Company has an issued share capital of 1,268,049,125 ordinary shares and is
quoted on the ISDX Growth Market of ICAP Securities and Derivatives Exchange
Stock Exchange ("ISDX"). ISDX was previously known as PLUS SX.

Previously, the Group's portfolio comprised of real estate and hospitality
assets located in the United Arab Emirates. These assets were sold in May 2012
in a transaction that would mark a new beginning for the Company, with a new
brand and a shift in its regional market focus to the Kingdom of Saudi Arabia
("KSA").

The transaction resulted in the Company selling its existing property portfolio
and acquiring a 34.12 percent indirect interest in Makkah & Madinah Commercial
Investments Company ("MMCI"). MMCI operates in the KSA, with investments in the
higher growth KSA real estate market, particularly in Makkah and Madinah. This
investment was undertaken with the aim of creating a more robust future for the
Company.

Since its incorporation in 2005, MMCI, a real estate and development investment
company headquartered in Jeddah, has proven successful in the acquisition and
sale of real property assets in the KSA, with its current property portfolio
valued at $1.95 billion as of 30 June 2013.

The Company's extensive knowledge in property development and strong commercial
ties with MMCI have opened the doors to multiple development opportunities in
Saudi Arabia that the Company continues to explore, with the aim of generating
significant returns and value for shareholders.

The Company maintains its vision of being an established real estate
development and investment entity in Saudi Arabia, offering their shareholders
solid, Shari'ah compliant, long-term returns from a market with substantial
potential.

                              FINANCIAL OVERVIEW                               

During the six month period ended 30 June 2013, the Company has posted a net
profit of $19.00 million compared to $2.24 million in the comparative period.
The increase is primarily from the share of profit from associate (MMCI). The
current period share of profit represents the share of profit for six months as
compared to approximately a month's profit in June 2012 as the acquisition of
34.121% in MMCI was completed on 26 May 2012.

The MMH investment in MMCI has increased by $59.25 million since the
acquisition of 34.121% interest in MMCI in May 2012. The profits of MMCI were
mainly derived from a property lease and fair value changes in investment
properties and available for sale investments. These positive results confirm
the strategic investment plan, executed by the Company, is delivering
considerable value.

The employee costs have almost doubled compared to the prior period due to an
increase in the number of employees including a Chief Financial Officer (CFO).
The other operating expenses marginally decreased by 3% to $298k (2012: $307k).
Other operating expenses mainly comprised of $127k (2012: $192k) for legal &
professional fees, $53k (2012: $0.5k) for office rent and other expenses, $44k
(2012: $50k) for business travel expenses and $46k (2012: $32k) for business
development expenses.

Earnings per share

The earnings per share has increased almost seven fold compared to the
comparative period as summarised below, mainly derived from the share of profit
from MMCI.

                                               30 June        30 June    
                                                                         
                                                 2013           2012     
                                                                         
                                                 USD            USD      
                                                                         
Basic Earnings per share                        0.013          0.002     
                                                                         
Diluted Earnings per share                      0.013          0.002     

Revenue

Revenue was principally derived from real estate advisory and consultancy
services to MMCI.

                                                30 June        30 June   
                                                                         
                                                 2013           2012     
                                                                         
                                                  USD            USD     
                                                                         
Real estate advisory and consultancy           1,089,918       919,619   
services                                                                 

Change in fair value of investment property

The exchange transaction of the Eye of Ajman land plots for a 34.12% equity
interest in MMCI resulted in a net gain on exchange of assets of $1.99 million
for the Group over the comparative period ended 30 June 2012.

Share of profit from associates

This represents the share of profit from associate (MMCI) for the period of 6
months to 30 June 2013 and is comprised of the following sources:

                                                       Six month     Six month
                                                    period ended  period ended
                                                                              
                                                    30 June 2013  30 June 2012
                                                                              
                                                             USD           USD
                                                                              
                                                      in million    in million
                                                                              
Share of profit from associate                                                
                                                                              
- Lease rental income                                       3.15          0.43
                                                                              
- Negative goodwill on Jabal Al Noor acquisition in         7.07             -
the period                                                                    
                                                                              
- Profit on disposal of investments and properties             -             -
                                                                              
- Fair value change investment and real estate              6.31             -
properties                                                                    
                                                                              
- Share of profit from associates                           0.10             -
                                                                              
- Other operating income/expense                          (0.29)           0.2
                                                                              
                                                           16.34          0.45
                                                                              
Share of other comprehensive income from associate                            
                                                                              
- Fair value change available for sale investment           2.55             -
                                                                              
                                                           18.89          0.45

The share of profit from associate of $18.89 million represents MMH share of
profit in MMCI net income for the period of 6 months to 30 June 2013. In the
comparative period, MMH share of profit in MMCI net income of only one month as
the interest in MMCI was acquired at the end of May 2012.

Investments

Following the exchange of the Eye of Ajman land plots for a 34.12% equity
interest in MMCI, the investment in MMCI is the only investment of the Company
at 30 June 2013. MMCI is a company with subsidiaries owning land plots and an
income generating development in the provinces of Makkah, Madinah, Jeddah and
elsewhere in the Kingdom of Saudi Arabia (KSA). The Directors therefore believe
that this acquisition, in the context of the strong demand for real estate
developments in the regions of Makkah and Madinah, which is fuelled by the
population growth and increasing number of visitors to the region associated
with the Islamic tourism sector, provides a more attractive investment
opportunity prospective for the Company to focus its commercial activities.

At the time of acquisition of MMCI's 34.12% interest in May 2012, the fair
value of 34.12% interest was $400 million. At 30 June 2013, the carrying value
of the investment was $459.25 million. This is an increase of $59.25 million
(15%) in over one year. This is indicative of the sound investment by MMH in
the KSA real estate market.

Liquidity position

The Company does not have any borrowings at the reporting date.

Cashflows

                                             Six month period  Six month period
                                                        ended             ended
                                                                               
                                                      30 June           30 June
                                                                               
                                                         2013              2012
                                                                               
                                                          USD               USD
                                                                               
Net cashflow from operations                        (120,615)         (635,526)
                                                                               
Net cashflow from investing                           (1,009)           (1,306)
                                                                               
Net cashflow from financing                                 -         1,267,029
                                                                               
Net (decrease)/increase in cash                     (121,624)           630,197
                                                                               
Cash and cash equivalents at start of                 460,934           417,783
period                                                                         
                                                                               
Cash and cash equivalents at the end of the           339,310         1,047,980
period                                                                         

Operating cash flows

The net cash outflow from operating activities during the period was $121k,
with working capital mainly used in relation to fees payable for evaluating
options for raising the profile of the Company and improving liquidity in the
shares, including seeking admission of the shares to trading on another stock
exchange in addition to, or other than, ISDX.

Financing cash flows

There was no cash flow from financing activities during the period. In the
comparative period ended 30 June 2012, the Company received the financial
contribution from a related party in support of expenses incurred in connection
with the work undertaken on the MMCI acquisition and for evaluating options for
raising the profile of the Company, including seeking admission of the shares
to trading on another stock exchange in addition to, or other than, ISDX.

                       MAKKAH & MADINAH HOLDINGS LIMITED                       

                CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                 

                       FOR THE PERIOD ENDED 30 JUNE 2013                       

                                    Notes  Six months  Year ended   Six months 
                                            ended 30   31 December   ended 30  
                                           June 2013                June 2012  
                                                          2012                 
                                          (unaudited)              (unaudited) 
                                                        (audited)              
                                                                               
                                              USD      (Restated)   (restated) 
                                                                               
                                                           USD         USD     
                                                                               
Revenue                                   1,089,918    1,948,229   919,619     
                                                                               
Change in fair value of investment        -            1,994,942   1,994,942   
property                                                                       
                                                                               
Employee costs                            (467,510)    (682,137)   (252,164)   
                                                                               
Share based payment expense               683,675      (683,675)               
                                                                               
Other operating expenses                  (295,596)    (853,868)   (307,544)   
                                                                               
Legal and professional fees               (898,681)    (2,102,388) (562,828)   
                                                                               
Depreciation                              (3,754)      (1,951)     -           
                                                                               
Impairment of available for sale          -            (123,257)   (123,257)   
assets                                                                         
                                                                               
Operating (loss)/profit                   108,052      (504,105)   1,668,768   
                                                                               
Share of profit from associate            16,342,917   29,867,629  453,465     
                                                                               
Finance expense                           -            (18,044)    (1,430)     
                                                                               
Profit for the period                     16,450,969   29,345,480  2,120,803   
                                                                               
Other Comprehensive income                                                     
                                                                               
Recycle of prior period available         -            123,257     123,257     
for sale assets losses                                                         
                                                                               
Share of fair value change of             2,552,131    10,487,840  -           
associate's available for sale                                                 
investment                                                                     
                                                                               
Total comprehensive income for the        19,003,100   39,956,577  2,244,060   
period                                                                         

Earnings per share attributable to                                              
the equity holders of the parent                                                
during the period                                                               
                                                                                
Basic earnings per share for the      2      0.013        0.023        0.002    
period                                                                          
                                                                                
Diluted earnings per share for the    2      0.013        0.023        0.002    
period                                                                          

                       MAKKAH & MADINAH HOLDINGS LIMITED                       

                 CONSOLIDATED STATEMENT OF FINANCIAL POSITION                  

                              AS AT 30 JUNE 2013                               

                                 30 June   31 December   30 June              
                                                                              
                                  2013        2012        2012                
                                                                              
                               (unaudited)  (audited)  (unaudited)            
                                                                              
                                                       (Restated)             
                                                                              
                                   USD         USD         USD                
                                                                              
ASSETS                                                                        
                                                                              
Non-current assets                                                            
                                                                              
Investment in associates       459,250,517 440,355,469 400,453,465            
                                                                              
Property, plant and equipment    27,853      30,597       1,306               
                                                                              
                               459,278,370 440,386,066 400,454,771            
                                                                              
Current assets                                                                
                                                                              
Trade receivables                261,053     631,471     475,837              
                                                                              
Prepayments, advances & other    771,080     797,336     158,575              
receivables                                                                   
                                                                              
Cash and cash equivalents        339,310     460,934    1,047,980             
                                                                              
                                1,371,443   1,889,741   1,682,392             
                                                                              
Total assets                   460,649,813 442,275,807 402,137,163            
                                                                              
EQUITY                                                                        
                                                                              
Share capital                  10,220,614  10,220,614  10,210,843             
                                                                              
Share premium                  395,001,706 395,001,706 394,835,588            
                                                                              
Reverse acquisition reserve     1,636,894   1,636,894   1,636,894             
                                                                              
Available for sale financial   13,039,971  10,487,840       -                 
assets reserve                                                                
                                                                              
Retained earnings / (losses)   38,825,240  23,057,946  (5,286,358)            
                                                                              
                               458,724,425 440,405,000 401,396,967            
                                                                              
LIABILITIES                                                                   
                                                                              
Current liabilities                                                           
                                                                              
Trade and other payables        1,925,388   1,870,807    740,196              
                                                                              
Total liabilities               1,925,388   1,870,807    740,196              
                                                                              
Total equity and liabilities   460,649,813 442,275,807 402,137,163            

                       MAKKAH & MADINAH HOLDINGS LIMITED                       

                  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                  

                       FOR THE PERIOD ENDED 30 JUNE 2013                       

                        Share       Share      Reverse   Available   Retained      Total   
                                   Premium   acquisition  for sale                         
                       Capital                 reserve   financial  earnings /             
                                                           assets    (losses)              
                                                          reserve                          
                                                                                           
                         USD         USD         USD        USD         USD         USD    
                                                                                           
                                                         (Restated) (Restated)             
                                                                                           
At 1 January 2012     10,210,843 394,835,588  2,591,217   (123,257) (9,628,513) 397,885,878
                                                                                           
Transactions with                                                                          
owners                                                                                     
                                                                                           
Capital contribution           -           -      -               -  1,267,029    1,267,029
                                                                                           
Transfer of reserves           -      -       (954,323)           -   954,323             -
                                                                                           
                      10,210,843 394,835,588  1,636,894   (123,257) (7,407,161) 399,152,907
                                                                                           
Other comprehensive            -           -           -    123,257      -          123,257
income - recycle of                                                                        
available for sale                                                                         
financial asset                                                                            
losses                                                                                     
                                                                                           
Comprehensive income           -      -           -               -  2,120,803    2,120,803
for the period                                                                             
                                                                                           
At 30 June 2012       10,210,843 394,835,588  1,636,894           - (5,286,358) 401,396,967
                                                                                           
At 1 July 2012        10,210,843 394,835,588  1,636,894           - (5,286,358) 401,396,967
                                                                                           
Transactions with                                                                          
owners                                                                                     
                                                                                           
Exercise of warrants       9,771   166,118             -          -      -        175,889  
                                                                                           
Capital contribution           -      -           -               -   435,952     435,952  
                                                                                           
                      10,220,614 395,001,706  1,636,894           - (4,850,406) 402,008,808
                                                                                           
Share based payment            -           -           -          -   683,675     683,675  
                                                                                           
Share of fair value            -           -           - 10,487,840      -      10,487,840 
change of associate's                                                                      
available for sale                                                                         
investment                                                                                 
                                                                                           
Comprehensive income           -      -           -               - 27,224,677  27,224,677 
for the period                                                                             
                                                                                           
At 31 December 2012   10,220,614 395,001,706  1,636,894  10,487,840 23,057,946  440,405,000
                                                                                           
At 1 January 2013     10,220,614 395,001,706  1,636,894  10,487,840 23,057,946  440,405,000
                                                                                           
Share of fair value            -           -           -  2,552,131      -       2,552,131 
change of associate's                                                                      
available for sale                                                                         
investment                                                                                 
                                                                                           
Share based payment            -      -           -               -  (683,675)   (683,675) 
expense                                                                                    
                                                                                           
Comprehensive income           -      -           -               - 16,450,969  16,450,969 
for the period                                                                             
                                                                                           
At 30 June 2013       10,220,614 395,001,706  1,636,894  13,039,971 38,825,240  458,724,425

                       MAKKAH & MADINAH HOLDINGS LIMITED                       

                     CONSOLIDATED STATEMENT OF CASH FLOWS                      

                       FOR THE PERIOD ENDED 30 JUNE 2013                       

                               Six months   Year ended  Six months             
                                ended 30                 ended 30              
                               June 2013   30 December   June 2012             
                              (unaudited)      2012     (unaudited)            
                                                                               
                                            (Audited)                          
                                                                               
                                  USD       (Restated)  (Restated)             
                                                                               
                                               USD          USD                
                                                                               
Profit for the period           16,450,969   29,345,480   2,120,803            
                                                                               
Adjustments for non-cash                                                       
items:                                                                         
                                                                               
Share of profit from          (16,342,917) (29,867,629)   (453,465)            
associate                                                                      
                                                                               
Change in fair value of                  -  (1,994,942) (1,994,942)            
investment property                                                            
                                                                               
Impairment of                            -      123,257     123,257            
available-for-sale financial                                                   
assets                                                                         
                                                                               
Depreciation                         3,754        1,951           -            
                                                                               
Professional fees settled by             -      175,889           -            
issues of ordinary shares                                                      
                                                                               
Share based payment expense      (683,675)      683,675           -            
                                                                               
Working capital changes:                                                       
                                                                               
Trade and other receivables        396,673  (1,300,363)   (633,421)            
                                                                               
Trade and other payables            54,581    1,205,400     202,242            
                                                                               
Cash (used in) / generated       (120,615)  (1,627,282)   (635,526)            
from operations                                                                
                                                                               
Cash flows from Investing                                                      
activities                                                                     
                                                                               
Purchase of property, plant        (1,009)     (32,548)     (1,306)            
and equipment                                                                  
                                                                               
Net cash used in investing         (1,009)     (32,548)     (1,306)            
activities                                                                     
                                                                               
Cash flows from financing                                                      
activities                                                                     
                                                                               
Capital contribution                     -    1,702,981   1,267,029            
                                                                               
Cash generated from financing            -    1,702,981   1,267,029            
activities                                                                     
                                                                               
Net (decrease)/increase in       (121,624)       43,151     630,197            
cash and cash equivalents                                                      
                                                                               
Cash and cash equivalents at       460,934      417,783     417,783            
beginning of the period                                                        
                                                                               
Cash and cash equivalents at       339,310      460,934   1,047,980            
end of the period                                                              

                       MAKKAH & MADINAH HOLDINGS LIMITED                       

                NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION                

Summary of significant accounting policies

 1. Basis of preparation
   
The consolidated interim financial information of the Company for the period
ended 30 June 2013 comprise the results of the Company and its subsidiaries
(together, the "Group") and have been prepared in accordance with the rules of
the ISDX growth market.

The consolidated interim financial information does not include all of the
information and disclosures required for full annual financial statements.

They should be read in conjunction with the Annual Report and Audited
Consolidated Financial Statements for the year ended 31 December 2012, which
were prepared in accordance with International Financial Reporting Standards
(IFRS) adopted for use in the European Union issued by the International
Accounting Standards Board (IASB). The annual financial statements are
available to download from www.mm-holdings.com.

The accounting policies applied by the Group in preparing the consolidated
interim financial information for the period ended 30 June 2013 are consistent
with those applied by the Group in its audited consolidated financial
statements for the period ended 31 December 2012 and is consistent with those
that will be applied by the Group in its consolidated financial statements for
the year ended 31 December 2013.

The consolidated interim financial information for the period ended 30 June
2013 and the comparatives for 30 June 2012 are unaudited. The comparatives for
31 December 2012 are audited and received an unqualified opinion.

The preparation of financial information in conformity with IFRS as adopted by
the European Union requires the use of certain critical accounting estimates.
It also requires management to exercise its judgement in the process of
applying the group's accounting policies.

In preparing this interim financial information, the key judgement and
estimates made by the Board are the same as those applied in the financial
statements as of, and for the period ended 31 December 2012.

There have been no material changes to reportable contingent liabilities since
31 December 2012.

 2. Earnings per share
   
 a. Basic
   
Basic earnings per share are calculated by dividing the profit attributable to
equity holders of the parent by the weighted average number of ordinary shares
in issue during the period.

                                            30 June   31 December       30 June
                                                                               
                                               2013          2012          2012
                                                                               
Profit attributable to equity holders    16,450,969    29,345,480     2,120,803
of the parent (USD)                                                            
                                                                               
Weighted average number of ordinary   1,267,249,125 1,266,541,010 1,266,006,519
shares in issue                                                                
                                                                               

 b. Diluted
   
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
ordinary shares. The company has two categories of dilutive potential ordinary
shares: share warrants and share options. For the share warrants and share
options, a calculation is performed to determine the number of shares that
could have been acquired at fair value (determined as the average annual market
share price of the company's shares) based on the monetary value of the
subscription rights attached to outstanding share warrants and share options.
The number of shares calculated as above is compared with the number of share
that would have been issued assuming the exercise of the share warrants and
share options.

                                            30 June   31 December       30 June
                                                                               
                                               2013          2012          2012
                                                                               
Profit attributable to equity holders    16,450,969    29,345,480     2,120,803
of the parent (USD)                                                            
                                                                               
Weighted average number of ordinary   1,267,249,125 1,266,541,010 1,266,006,519
shares in issue                                                                
                                                                               
Adjustments for:                                                               
                                                                               
Assumed conversion of share warrants     12,853,983     1,390,618    15,567,870
                                                                               
Assumed conversion of share options       1,335,435    14,022,527     1,551,849
                                                                               
Weighted average number of ordinary   1,281,438,543 1,281,954,155 1,283,126,238
shares for diluted earnings per share                                          

 3. Subsequent events
   
Increase in share capital

In July 2013, pursuant to a settlement agreement between the Company and
McClure Naismith, the Company has issued 800,000 ordinary shares to McClure
Naismith at the price of GBP 0.125 pence per share. Following the issue of
shares to McClure Naismith, the total share capital of the Company has
increased to 1,268,049,125 ordinary shares.

 4. Restatement of Comparatives
   
 i. Related party receivable and payable balances in the 2012 interim reporting
    period were disclosed as a net balance from 2 different related parties
    incorrectly hence the comparatives have been amended to reflect the correct
    position as confirmed to management in 2012. This restatement resulted in a
    gross up of US$ 141,128 between trade and other payables and other
    receivables.
   
ii. In the 2012 financial reporting period, the profit from associate
    incorrectly included the Company's share of the fair value change of the
    associate's available for sale investment when this amount should be
    reflected in other comprehensive income. The comparatives have been amended
    to reflect this and the earnings per share has been duly corrected.
   
The Directors of Makkah & Madinah Holdings Limited have issued this
announcement after due and careful enquiry; and accept responsibility for its
content.

Enquiries:

Makkah & Madinah Holdings Limited:
Victoria Arscott, Investor Relations Manager;
+971 4 4239033;
[email protected]

Daniel Stewart and Company Plc:
Paul Shackleton;
+44 20 7776 6550;
[email protected]

a d v e r t i s e m e n t