Abraaj takes 9.4% stake in Osian's for $20mn

* Strategic participation to facilitate Osian's enhance its global footprint

* Abraaj continues its investment in culture and education throughout MENASA

* Dubai based PE firm values Osian's at Rs 840 crore ($ 210 million)

Mumbai, 17 March 2008: Osian's Connoisseurs of Art, India's pioneering arts institution, today signed an agreement to sell a strategic minority stake to Abraaj Capital, the premier investment firm specializing in private equity investment across the Middle East, North Africa and South Asia (MENASA) region. The transaction involving an investment of Rs 80 crore ($ 20 million) will give them approximately 9.4% stake in Osian's. This means that Abraaj Capital has valued Osian's at approximately Rs 840 crore ($ 210 million) post conversion by May 2008.

Neville Tuli remains the single largest shareholder in Osian's. Additionally, the Vice Chairman and Group Chief Executive Officer of Abraaj, Arif Masood Naqvi will join the Osian's board.

The Osian's share price, which has been privately placed since 2001, has grown at a CAGR of approximately 85% now reaching Rs 1,600/- through this latest private placement. Abraaj's equity participation and board representation will assist the rapid business expansion and ongoing institutionalization underway at Osian's.

Stating the rationale, Neville Tuli, Founder Chairman and CEO of Osian's, says, "Since its inception, we have sought to create a world-class infrastructure-building institution that takes a leadership position in key artistic and cultural sectors, demonstrating that a knowledge and creativity driven approach can also generate great wealth for the collective, let alone the institution. The unique internally cross-subsidized framework eventually creates a systematic and self-sustaining revenue model without pushing creativity into short term commercial compromises, so facilitating its developmental potential rather than minor trading opportunities. Osian's plan to become the first arts and cultural institution to publicly list is on schedule for 2009."

Tuli adds, "Abraaj's partnership will further facilitate the expansion of Osian's while providing Abraaj with an ideal growth opportunity in the fast-growing art and culture sphere."

Arif Naqvi, Vice Chairman and Group Chief Executive Officer of Abraaj Capital, said: "Indian, Asian and Arab art is experiencing a period of historic change and development, and the cultural and financial opportunities are phenomenal. We are delighted to join the outstanding shareholder base of Osian's and to support Neville in his vision of creating an institution that provides an infrastructure for broad access to the arts in the widest sense whilst also demonstrating that this can be financially viable and attractive."

About Osian's

Osian's as a pioneering infrastructure building arts institution, has systematically redefined the awareness, respect and value of the Indian Modern and Contemporary fine and popular arts. Additionally, having reinvented the relationship between creativity-knowledge-wealth and the structured processes required to simultaneously create both knowledge and value, it has helped transform attitudes and mindsets.

The unique expertise and vast historic and financial archives built up by Neville Tuli and Osian's, has made it possible to create credible benchmarks and knowledge bases for the art market over a sustainable period of time, allowing a systematic entry for the financial investor in the world's most exclusive and knowledge-centric market. With its Auction House, the Art Funds, Art Advisory Services, the Centre for Archiving, Research & Development (CARD), Osian's- Cinefan (the Arab & Asian Film Festival), the Literary Agency, the Publishing & Design House, fFOOD: the Film Fund and the forthcoming multi-cultural complex The Osianama, Osian's has established itself at the highest international standards as a uniquely integrated cultural institution. Osian's aspires to be the world's first arts and cultural institution to become a Public Limited company. For further information please visit www.osians.com.

About Abraaj

Based in Dubai, Abraaj Capital is the premier investment firm specializing in private equity investment in the Middle East, North Africa and South Asia (MENASA) region. The management team has brought together some of the most compelling and successful transactions in the history of leveraged acquisitions across the region. With US$5 billion of assets currently under management, Abraaj has pioneered institutionalizing private equity practice in the region and is setting trends and benchmarks for others to follow.

Winner of industry awards including 'Middle Eastern Private Equity Firm of the Year' from Private Equity International (2005, 2006 & 2007), the Banker Middle East Award for 'Best Private Equity House' in 2006 and for 'Outstanding Contribution to Financial Services' in 2007 and 'Best Private Equity House' at the World Private Equity Awards, MENA in 2007. Arabian Business recognized Abraaj among the 50 Most Admired Companies in the GCC in 2007. Abraaj is also the first pure private equity firm to be registered by the Dubai Financial Services Authority to operate out of the Dubai International Financial Centre.

Apart from managing its five private equity funds, Abraaj Capital Holdings Limited (ACHL) itself is extremely well capitalized, with an issued share capital of US$ 1 billion. Its 135 professionals come from 27 nationalities and achieve a coverage that spans the MENASA region. For more information please visit www.abraaj.com