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DP World Sells US Port Operations

by Lorys Charalambous,, Cyprus

29 December 2006

P&O Holdings, Inc., a wholly-owned subsidiary of global marine terminal operator DP World, has entered into an agreement in Dubai to sell 100% of P&O Ports North America (POPNA) to a subsidiary of AIG Global Investment Group for an undisclosed price.

POPNA’s operations principally comprise marine terminal concessions in the ports of New York/New Jersey, Philadelphia, Baltimore, Miami, Tampa and New Orleans, coupled with stevedoring operations in 16 locations along the East and Gulf Coasts and a passenger terminal in New York City.

Commenting on the sale, Sultan Ahmed Bin Sulayem, the Chairman of DP World, said: “While we are disappointed to be exiting the US market, the price we received was fair. We are pleased that POPNA will have a strong owner in AIG and wish them well for the future.”

Mohammed Sharaf, DP World Chief Executive Officer, added: “With the sale of the US assets, we have concluded the process and our commitment to the American people that we began in March, 2006. Meanwhile, we continue to expand globally in response to our customers’ needs.”

DP World acquired UK port operator P&O in March 2006, but has been forced to offload the company's US operations after lawmakers there raised concerns over national security and threatened to block the takeover unless a US entity was found to operate P&O's North American ports.

Christopher Lee, AIG Global Investment Group Managing Director, stated:

“AIG Global Investment Group has been a leader in acquiring strategic, regulated infrastructure businesses and assets. We have identified the marine terminals sector as a key element in our infrastructure investment strategy, and we believe that POPNA is one of the leading operators in this sector in the United States."

"An integral component of this acquisition is our full commitment to the importance of this company to national security, and we are very committed to ensuring that the company continues to be one of the industry leaders in setting standards for port security.”

DP World is one of the largest marine terminal operators in the world and has the widest network of any, with 51 terminals spanning 24 countries.

AIGIG, a major global asset management company, manages more than US$635 billion in assets.

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