Cyril Sweett, an international construction and property consultancy, is pleased to announce the acquisition of the remaining 50% of the issued share capital of Jones Sweett International Limited (“Jones Sweett”), its joint venture company, which operates primarily in the United Arab Emirates (“UAE”). The consideration was £103,518 in cash, plus a mutual return of shares.

This is the first acquisition made by Cyril Sweett Group plc since its IPO in October 2007 and is in line with the Group’s stated growth strategy which is focused on continued organic growth, supplemented by carefully selected acquisitions both in the UK and internationally. Cyril Sweett was the first quantity surveyor consultancy to list on the AIM market in order to have significant first mover advantage and become a consolidator in a highly fragmented market.

As a result of the acquisition, the Joint Venture Agreement with D G Jones and Partners (Middle East) Limited will end, but it is planned that the relationship between the companies will continue as an Alliance Partnership. Upon completion, Jones Sweett International Limited has changed its name to Cyril Sweett International Limited.

As a result of the termination of the Joint Venture Agreement, Cyril Sweett International Limited will continue to hold 1,038,109 Ordinary shares of 10 pence each in the Group. The value of these shares on the date of acquisition was £887,583, representing 1.9% of the issued share capital of the Group. These shares will continue to be held in Treasury until such time as they are used in connection with the acquisition of other businesses. It is expected that the acquisition will be immediately earnings enhancing.

Cyril Sweett International Limited’s Dubai office obtained business registration in September 2007 and has grown rapidly ever since. Today it employs 25 staff, has an order book estimated at £2.6m and has a projected turnover for this financial year of £750k.

Dean Webster, Chief Executive Officer, Cyril Sweett Group plc said:

“This acquisition, which is earnings enhancing, supports our wider international growth strategy and is in line with the strategy outlined at the time of the IPO in the last quarter of 2007. Our Middle East operations are producing very encouraging results and we have had many notable appointments over the last year which includes a significant role on the world’s largest rail project, the Dubai Metro; the new Deira Palm retail mall and ‘The Ipad’ said to be the most technologically advanced buildings in the world. We have also been awarded a framework agreement to deliver 24 Holiday Inn Express hotels across the region.

With construction activity forecast to grow consistently over the coming years in the Middle East, we plan to aggressively grow our business in the region, taking advantage of the immense market opportunity. We will use our established business in Dubai as the base to expand across the UAE and beyond.”

The market:

The UAE, with £19.7 billion building projects under way, commands almost 65 per cent. of the construction across the Gulf Cooperation Council (”GCC”). Government statistics show construction vacancies in Dubai (currently over 123,000) are soaring along with skyscrapers. Most construction is concentrated in Dubai, with attention focused on the Burj Dubai Tower and the £800 million Dubai Airport expansion – the world’s largest civil aviation development. Abu Dhabi is expecting to commence huge new projects as part of the comprehensive masterplan for the Emirate.