BTU District Energy Company Invests in Tabreed

Dubai, United Arab Emirates — May 28, 2003

BTU District Energy Company, part of the BTU Group, acquired 1.77 million shares or more than 3.5% of Abu Dhabi-based National Central Cooling Company (“Tabreed”) in May 2003 through public auction at the Dubai Financial Market ("DFM").

Tabreed was established in 1998 as a public joint shareholding company, with sponsorship of the UAE Offsets group ("UOG"). District cooling produces chilled water at a central plant and distributes it through an insulated pipeline network to customers’ buildings. Air is forced past the cold-water tubing to produce an A/C environment.

Wael Almazeedi, CEO of the BTU Group, said: "We have been closely following Tabreed's progress for over a year now and believe that it represents an exceptional long-term investment opportunity. Tabreed's business model is robust and adheres to that of typical utility businesses in the US, Europe and Japan.

"Tabreed's management is world-class, its brand name is recognized throughout the region, and its future growth prospects both domestically and regionally are tremendous.  We are confident that Tabreed will realize its true potential as the local and regional investor and investment banking communities gradually develop a better appreciation for its business model."

With a total of 22 plants currently planned by 2006, Tabreed is currently the leading provider of district cooling in the UAE, serving government commercial and residential facilities throughout the country.

District cooling has several key advantages over conventional air conditioning. Economies of scale present in supplying space conditioning from a single plant to several facilities reduces capital and O&M costs leading to a 50% reduction in the cost the delivery of the final product. In addition to lower costs for customers, the added efficiency of space conditioning from district cooling reduces both air and noise pollution and improves temperature control.

The UAE and the Gulf region have a strong market for district cooling services, where a hot, humid climate, dense urban development and rapid economic growth are driving growth in demand.

Tabreed is well positioned to grow its business in the UAE and in the other Gulf countries. Capitalizing on its base of long-term contracts with government customers that provide stable cash flows, Tabreed has already achieved significant profitability.

BTU District Energy Company and its affiliates (collectively the "BTU Group") were established in 2001 to capitalize on the deregulation and privatization of the energy and energy-related industries in select Middle Eastern and North African countries. In addition to acquiring operating assets in the power, oil, gas, petrochemical, and related industries, the BTU Group develops greenfield and brownfield project opportunities. The BTU Group's shareholders include leading publicly traded companies and institutional investors in the Gulf Cooperation Council countries. The BTU Group operates out of offices in Burlington, Mass., USA and in Dubai, UAE.