PADICO HOLDING Announces Upward Financial Results for 1H-2010

Distinctive Performance and Record Profits Made by Subsidiary Companies Promise Additional Profits Towards End of Year

RAMALLAH, Palestine, August 18, 2010 -

    - 21% Growth in Total Revenues to Reach US$ 48.64m
    - 89% Growth in Operational Revenues From Subsidiaries to Reach US$
      25.15m
    - 49 % Growth in Operating Income (After Excluding Nonrecurring Items)

Palestine Development and Investment Ltd. (PADICO Holding) - A Leading
Investment Group in Palestine announced its financial results for the second
quarter of 2010. The Company's net profits amounted to US$ 20.39 million in
1H 2010, witnessing an increase of 2% compared to US$ 19.80 million in of
1H-2009.

Operational income substantially grew by 49% in 1H-2010 due to
significant improvement in operational revenues of subsidiaries, which
registered an increase of 89% to reach US$ 25.15 million compared to US$13.29
million in 1H-2009. The overall growth levels achieved in 1H-2010 financial
results is accredited to the restructuring plan currently being implemented,
in addition to the increased operational efficiencies at subsidiaries' level.

Current Operating Performance and Future Outlook

Munib R. Masri, Board Chairman of PADICO Holding, commended the achieved
financial results for 1H-2010, and attributed this positive performance to
the restructuring process initiated by PADICO Holding in mid 2008. This
process aims at focusing investments in the tourism, real estate, industry
and financial sectors under the umbrella of specialised companies. The
consolidation of operations has resulted in optimizing efficiencies and
reducing redundancy cost, contributing to improving operational revenues for
subsidiaries.

In regard to the Company's future outlook, Masri stated that PADICO
HOLDING's strategy will continue to focus investments over the next period in
vital economic sectors particularly infrastructure, water and wastewater,
solid waste recycling, agriculture and real estate. Additionally, PADICO
Holding will continue to implement projects and be on the lookout for new
investment opportunities in Jerusalem.

Distinctive Results Achieved by Subsidiary Companies

Samir Hulileh, CEO of PADICO Holding, stressed that the announced results
during1H-2010 reflect a new era, whereby the Company enjoys diversified
sources of income as opposed to previous years where it had to rely on a
single source. For the first time in years, a number of subsidiaries have
started to generate profits, therefore promising a balanced and stable source
of income.

Hulileh stated that this positive performance is attributed to PADICO
HOLDING's sound policy; concentrating on re-channelling investments, and
focusing on operational activity plus direct investments, while reducing
portfolio investments.

    Contact information:

    Ms. Nur Nasser Eddin
    nur@padico.com
    Tel: +970-2-2403336

Contact information: Ms. Nur Nasser Eddin, nur at padico.com , Tel: +970-2-2403336.