----

|                                         | Page   |
|----------------------------------------------|--------|
|                                         |   |
| Directors’      report            | 1      |
|                                         |   |
| Independent      auditor's report       | 2-3    |
|                                         |   |
| Balance      sheet                      | 4      |
|                                         |   |
| Income      statement                   | 5      |
|                                         |   |
| Statement      of changes in equity          | 6      |
|                                         |   |
| Cash      flow statement                | 7      |
|                                         |   |
| Notes      to the financial statements  | 8-21   |

----

|  /s/      Khalid Al Marri |   |
|--------------------------------|--------|
| Chairman                       |   |
|                           |   |

----

----

----

|                                      | Notes  |   | 2008                                                               |   | 2007                                                                                      |
|-------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|
|                                      |   |   | AED                                                                |   | AED                                                                                       |
| ASSETS                                    |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Non-current      assets                   |   |   |                                                               |   |                                                                                      |
| Intangible      assets                    | 5      |   |           13,779 |   |  -                                                                                   |
| Property,      plant and equipment        | 6      |   |    57,414,287                                       |   |       43,476,531                                            |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Total      non-current assets             |   |   |    57,428,066                                       |   |       43,476,531                                            |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Current      assets                       |   |   |                                                               |   |                                                                                      |
| Prepayments                               |   |   |         696,504            |   |           676,884                       |
| Advances                                  |   |   |           52,330 |   |             69,825            |
| Cash      and bank balances               |   |   |      1,150,670                            |   |           910,280                       |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Total      current assets                 |   |   |      1,899,504                            |   |         1,656,989                                 |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Total      assets                         |   |   |    59,327,570                                       |   |       45,133,520                                            |
|                                      |   |   |                                                               |   |                                                                                      |
| DEFICIT      AND LIABILITIES              |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Capital                                   |   |   |                                                               |   |                                                                                      |
| Share      capital                        | 7      |   |      1,000,000                            |   |         1,000,000                                 |
| Accumulated      losses                   |   |   |     (9,803,977)                                |   |       (1,972,417)                                           |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Net      deficit                          |   |   |     (8,803,977)                                |   |          (972,417)                           |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Non-current      liabilities              |   |   |                                                               |   |                                                                                      |
| Provision      for end of service benefit | 8      |   |         122,268            |   |               6,521 |
| Bank      borrowings                      | 9      |   |    29,706,887                                       |   |       26,839,008                                            |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Total      non-current liabilities        |   |   |    29,829,155                                       |   |       26,845,529                                            |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Current      liabilities                  |   |   |                                                               |   |                                                                                      |
| Trade      and other payables             |   |   |         557,085            |   |           144,836                       |
| Due      to related parties               | 10     |   |    33,222,460                                       |   |       19,115,572                                            |
| Bank      borrowings                      | 9      |   |      4,522,847                            |   |  -                                                                                   |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Total      current liabilities            |   |   |    38,302,392                                       |   |       19,260,408                                            |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Total      liabilities                    |   |   |    68,131,547                                       |   |       46,105,937                                            |
|                                      |   |   |                                                               |   |                                                                                      |
|                                      |   |   |                                                               |   |                                                                                      |
| Total      deficit and liabilities        |   |   |    59,327,570                                       |   |       45,133,520                                            |
|                                      |   |   |                                                               |   |                                                                                      |

|  /s/ Khalid Al Marri |   |  /s/ Pavol Harangozo |
|---------------------------|--------|---------------------------|
| Chairman                  |   | General      Manager      |
|                      |   |                      |

----

|                              |   |   |                                                                                                                           |   | Period      from                                                                                                               |
|-----------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|
|                              |   |   |                                                                                                                           |   | 20      May 2006                                                                                                               |
|                              |   |   |                                                                                                                           |   | (inception)      to                                                                                                            |
|                              |   |   |                                                                                                                           |   | 31      December                                                                                                               |
|                              |   |   | 2008                                                                                                                           |   | 2007                                                                                                                           |
|                              |   |   |                                                                                                                           |   |                                                                                                                           |
|                              | Note   |   | AED                                                                                                                            |   | AED                                                                                                                            |
|                              |   |   |                                                                                                                           |   |                                                                                                                           |
| Revenue                           |   |   |  -                                                                                                                        |   |  -                                                                                                                        |
| Cost      of sales                |   |   |  -                                                                                                                        |   |  -                                                                                                                        |
|                              |   |   |                       |   |                       |
| Gross      profit                 |   |   |  -                                                                                                                        |   |  -                                                                                                                        |
|                              |   |   |                                                                                                                           |   |                                                                                                                           |
| Administrative      expenses      |   |   |     (5,172,011)                                                                                            |   |          (727,479)                                                                |
| Marketing      expenses           |   |   |        (967,774)                                                                            |   |  -                                                                                                                        |
| Finance      costs                |   |   |     (1,691,775)                                                                                            |   |       (1,278,974)                                                                                |
| Other      income                 |   |   |  -                                                                                                                        |   |             34,036                                                 |
|                              |   |   |                       |   |                       |
|                              |   |   |                                                                                                                           |   |                                                                                                                           |
| Net      loss for the year/period | 11     |   |     (7,831,560)                                                                                            |   |       (1,972,417)                                                                                |
|                              |   |   |                       |   |                       |

----

|                             |   | Sharecapital |      |   | Accumulatedlosses |   |       | Netdeficit |   |
|----------------------------------|--------|--------------|-----------|--------|-------------------|--------|------------|------------|--------|
|                             |   | AED          |      |   | AED               |   |       | AED        |   |
|                             |   |         |      |   |              |   |       |       |   |
| Capital      contribution        |   |         | 1,000,000 |   |              |   | -          |       |   |   | 1,000,000 |   |
| Net      loss for the period     |   |         | -         |   |              |   | (1,972,417 | )          |   |   | (1,972,417 | ) |
|                             |   |         |      |   |              |   |       |       |   |   |   |   |
|                             |   |         |      |   |              |   |       |       |   |   |   |   |
| Balance      at 1 January 2008   |   |         | 1,000,000 |   |              |   | (1,972,417 | )          |   |   | (972,417 | ) |
|                             |   |         |      |   |              |   |       |       |   |   |   |   |
| Net      loss for the year       |   |         | -         |   |              |   | (7,831,560 | )          |   |   | (7,831,560 | ) |
|                             |   |         |      |   |              |   |       |       |   |   |   |   |
|                             |   |         |      |   |              |   |       |       |   |   |   |   |
| Balance      at 31 December 2008 |   |         | 1,000,000 |   |              |   | (9,803,977 | )          |   |   | (8,803,977 | ) |
|                             |   |         |      |   |              |   |       |       |   |   |   |   |

----

|                                                                                     |   |   |        |   | Period      from                |   |
|------------------------------------------------------------------------------------------|--------|--------|-------------|--------|---------------------------------|--------|
|                                                                                     |   |   |        |   | 20      May 2006 (inception) to |   |
|                                                                                     |   |   |        |   | 31      December      |   |
|                                                                                     |   | 2008   |        |   | 2007                            |   |
|                                                                                     |   | AED    |        |   | AED                             |   |
|                                                                                     |   |   |        |   |                            |   |
| Operating      activities                                                                |   |   |        |   |                            |   |
| Net      loss for the year/period                                                        |   |   | (7,831,560  | )      |                            |   | (1,972,417 | ) |
| Adjustments      for:                                                                    |   |   |        |   |                            |   |   |   |
|   Amortisation      of intangible assets                                       |   |   | 3,921       |   |                            |   | - |   |
|   Depreciation      of property, plant and equipment                           |   |   | 160,994     |   |                            |   | 1,250 |   |
|   Provision      for end of service benefit                                    |   |   | 115,747     |   |                            |   | 6,521 |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Operating      cash flows before movements in  working      capital            |   |   | (7,550,898  | )      |                            |   | (1,964,646 | ) |
|   Increase/decrease      in working capital:                                   |   |   |        |   |                            |   |   |   |
|   Prepayments                                                                  |   |   | (19,620     | )      |                            |   | (676,884 | ) |
|   Advances                                                                     |   |   | 17,495      |   |                            |   | (69,825 | ) |
|   Trade      and other payables                                                |   |   | 412,249     |   |                            |   | 144,836 |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Net      cash used in operating activities                                               |   |   | (7,140,774  | )      |                            |   | (2,566,519 | ) |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Investing      activities                                                                |   |   |        |   |                            |   |   |   |
| Purchase      of intangible assets                                                       |   |   | (17,700     | )      |                            |   | - |   |
| Purchase      of property, plant and equipment                                           |   |   | (14,098,750 | )      |                            |   | (43,477,781 | ) |
|                                                                                     |   |   |        |   |                            |   |   |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Net      cash used in investing activities                                               |   |   | (14,116,450 | )      |                            |   | (43,477,781 | ) |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Financing      activities                                                                |   |   |        |   |                            |   |   |   |
| Capital      contribution                                                                |   |   | -           |   |                            |   | 1,000,000 |   |
| Bank      borrowings obtained                                                            |   |   | 9,413,278   |   |                            |   | 26,839,008 |   |
| Bank      borrowings paid                                                                |   |   | (2,022,552  | )      |                            |   | - |   |
| Advances      from related parties                                                       |   |   | 14,106,888  |   |                            |   | 19,115,572 |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Net      cash from financing activities                                                  |   |   | 21,497,614  |   |                            |   | 46,954,580 |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Net      increase in cash and cash equivalents                                           |   |   | 240,390     |   |                            |   | 910,280 |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Cash      and cash equivalents at the beginning   of      the year/period |   |   | 910,280     |   |                            |   | - |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
|                                                                                     |   |   |        |   |                            |   |   |   |
| Cash      and cash equivalents at the end of the   year/period            |   |   | 1,150,670   |   |                            |   | 910,280 |   |
|                                                                                     |   |   |        |   |                            |   |   |   |

----

| 2.1   |  Standards      and interpretations effective in the current  period |
|-----------------|---------------------------------------------------------------------------|

|  · IFRIC      11 IFRS 2:Group and Treasury Share      Transactions                                                         |
|------------------------------------------------------------------------------------------------------------------------------------------------|
|  ·  IFRIC      12 Service Concession      Arrangements                                                                |
|  · IFRIC      14 IAS 19:The Limit on a Defined Benefit      Asset, Minimum Funding Requirement and their      interaction  |

| · IAS      1 (revised) Presentation      of Financial Statements and IAS 32 (revised) Financial Instruments:      Presentation – Amendments relating to puttable instruments and obligations      arising on liquidation  | Effective      for annual periods beginning on or after 1 January 2009 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| · IAS      23 (revised) Borrowing      Costs                                                                                                                                                                                    | Effective      for annual periods beginning on or after 1 January 2009 |
| · IAS      39 (revised) Financial      Instruments: Recognition and Measurement- Amendments for eligible hedged      Items                                                                                                      | Effective      for annual periods beginning on or after 1 July  2009   |

----

| · IFRS      1 (revised) First time      Adoption of IFRS and IAS 27 (revised) Consolidated and Separate      Financial Statements– Amendment relating to cost      of an investment on first time adoption                                                                                                                       | Effective      for annual periods beginning on or after 1 January 2009  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|
| · IFRS      2 (revised) Share-based      payment – Amendment relating to vesting conditions and      cancellations                                                                                                                                                                                                               | Effective      for annual periods beginning on or after 1 January 2009  |
| · IFRS      3 (revised) Business      Combinations – Comprehensive revision on applying the acquisition method      and consequential amendments to IAS 27 (revised) Consolidated and Separate      Financial Statements, IAS 28 (Revised) Investments in      Associates and IAS 31 (Revised) Interests in Joint      Ventures  | Effective      for annual periods beginning on or after 1 July 2009     |
| · IFRS      8 Operating      Segments                                                                                                                                                                                                                                                                                                  | Effective      for annual periods beginning on or after 1 January 2009  |
| · Amendments      to IFRS 5, IAS 1, IAS 16, IAS 19, IAS 20, IAS 23, IAS 27, IAS 28, IAS 29,      IAS 31, IAS 36, IAS 38, IAS 39, IAS 40 and IAS 41 resulting from the May and      October 2008 Annual Improvements to IFRSs                                                                                                           | Effective      for annual periods beginning on or after 1 January  2009 |

| · IFRIC      13 Customer Loyalty      Programmes                        | Effective      for annual periods beginning on or after 1 July 2008    |
|----------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| · IFRIC      15 Agreements for the      Construction of Real Estate     | Effective      for annual periods beginning on or after 1 January 2009 |
| · IFRIC      16 Hedges of a Net      Investment in a Foreign Operation  | Effective      for annual periods beginning on or after 1 October 2008 |
| · IFRIC      17 Distributions of      Non-cash Assets to Owners         | Effective      for annual periods beginning on or after 1 July 2009    |
| · IFRIC      18 Transfers of Assets      from Customers                 | Effective      for annual periods beginning on or after 1 July  2009   |

----

| Building      improvements  | 20% |
|-----------------------------|-----|
| Furniture      and fixtures | 20% |
| Office      equipment       | 25% |
| Motor      vehicles         | 20% |
| Other      assets           | 25% |

----

----

----

----

| 3   |  Summary of      significantaccountingpolicies      (continued) |
|---------------|----------------------------------------------------------------------|

| 4 |  Critical      accounting judgements and key sources of estimation      uncertainty |
|---|------------------------------------------------------------------------------------------|

----

| 5   |  Intangible      assets |
|---------------|------------------------------|

|                          |   |  2008 |   |   | 2007   |   |
|-------------------------------|--------|------------|--------|--------|--------|--------|
|                          |   | AED        |   |   | AED    |   |
| Cost                          |   |       |   |   |   |   |
| At      1 January             |   |       | -      |   |   |   | - |   |
| Additions                     |   |       | 17,700 |   |   |   | - |   |
|                          |   |       |   |   |   |   |   |   |
|                          |   |       |   |   |   |   |   |   |
| At      31 December           |   |       | 17,700 |   |   |   | - |   |
|                          |   |       |   |   |   |   |   |   |
| Accumulated      amortisation |   |       |   |   |   |   |   |   |
| At      1 January             |   |       | -      |   |   |   | - |   |
| Charge      for the year      |   |       | 3,921  |   |   |   | - |   |
|                          |   |       |   |   |   |   |   |   |
|                          |   |       |   |   |   |   |   |   |
| At      31 December           |   |       | 3,921  |   |   |   | - |   |
|                          |   |       |   |   |   |   |   |   |
| Carrying      amount          |   |       |   |   |   |   |   |   |
| At      31 December           |   |       | 13,779 |   |   |   | - |   |
|                          |   |       |   |   |   |   |   |   |
|                          |   |       |   |   |   |   |   |   |

----

|                          |   | Building      improvements |    |   | Furniture      andfixtures |   |    | Officeequipment |   |   | Motor vehicles |   |   | Capital      workin      progress |   |   | Total  |   |
|-------------------------------|--------|----------------------------|---------|--------|----------------------------|--------|---------|-----------------|--------|--------|---------------------|--------|--------|-----------------------------------|--------|--------|--------|--------|
|                          |   |                       |    |   | AED                        |   |    | AED             |   |   | AED                 |   |   | AED                               |   |   | AED    |   |
| Cost                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |
| Additions                     |   |                       | -       |   |                       |   | 116,836 |            |   |   | 8,538               |   |   |                              | -      |   |   |   | 43,352,407 |   |   |   | 43,477,781 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| 1      January 2008           |   |                       | -       |   |                       |   | 116,836 |            |   |   | 8,538               |   |   |                              | -      |   |   |   | 43,352,407 |   |   |   | 43,477,781 |   |
| Additions                     |   |                       | 312,428 |   |                       |   | 354,516 |            |   |   | 242,053             |   |   |                              | 74,000 |   |   |   | 13,115,753 |   |   |   | 14,098,750 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| At      31 December 2008      |   |                       | 312,428 |   |                       |   | 471,352 |            |   |   | 250,591             |   |   |                              | 74,000 |   |   |   | 56,468,160 |   |   |   | 57,576,531 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Accumulated      depreciation |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Charge      for the period    |   |                       | -       |   |                       |   | 954     |            |   |   | 296                 |   |   |                              | -      |   |   |   | - |   |   |   | 1,250 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| 1      January 2008           |   |                       | -       |   |                       |   | 954     |            |   |   | 296                 |   |   |                              | -      |   |   |   | - |   |   |   | 1,250 |   |
| Charge      for the year      |   |                       | 51,155  |   |                       |   | 67,213  |            |   |   | 36,459              |   |   |                              | 6,167  |   |   |   |   |   |   |   | 160,994 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| At      31 December 2008      |   |                       | 51,155  |   |                       |   | 68,167  |            |   |   | 36,755              |   |   |                              | 6,167  |   |   |   | - |   |   |   | 162,244 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| Carrying      amount          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| At      31 December 2008      |   |                       | 261,273 |   |                       |   | 403,185 |            |   |   | 213,836             |   |   |                              | 67,833 |   |   |   | 56,468,160 |   |   |   | 57,414,287 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
| At      31 December 2007      |   |                       | -       |   |                       |   | 115,882 |            |   |   | 8,242               |   |   |                              | -      |   |   |   | 43,352,407 |   |   |   | 43,476,531 |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |
|                          |   |                       |    |   |                       |   |    |            |   |   |                |   |   |                              |   |   |   |   |   |   |   |   |   |   |

----

|                                                                              |                      |   | 2008      and 2007 |   |
|-----------------------------------------------------------------------------------|---------------------------|--------|--------------------|--------|
|                                                                              | Place      ofregistration |   | %                  |   |   | Number      ofshares |   |   | AED |   |
|                                                                              |                      |   |               |   |   |   |   |   |   |   |
| Al      Qudra Holding P.J.S.C.                                                    | UAE                       |   |               | 60     |   |   |   | 600 |   |   |   | 600,000 |   |
| Center      of Excellence for Applied Research   and      Training | UAE                       |   |               | 30     |   |   |   | 300 |   |   |   | 300,000 |   |
| GSE      Power Systems, Inc.                                                      | USA                       |   |               | 10     |   |   |   | 100 |   |   |   | 100,000 |   |
|                                                                              |                      |   |               |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                      |   |               |   |   |   |   |   |   |   |   |   |   |
|                                                                              |                      |   |               | 100    |   |   |   | 1,000 |   |   |   | 1,000,000 |   |
|                                                                              |                      |   |               |   |   |   |   |   |   |   |   |   |   |

|                            |   | 2008   |    |   | 2007   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|
|                            |   | AED    |    |   | AED    |   |
|                            |   |   |    |   |   |   |
| At      1 January               |   |   | 6,521   |   |   |   | - |   |
| Charge      for the year/period |   |   | 115,747 |   |   |   | 6,521 |   |
|                            |   |   |    |   |   |   |   |   |
|                            |   |   |    |   |   |   |   |   |
| At      31 December             |   |   | 122,268 |   |   |   | 6,521 |   |
|                            |   |   |    |   |   |   |   |   |

| 9   |         Bank borrowings |
|---------------|-----------------------------------|

|                                        |   | 2008   |        |   | 2007   |   |
|---------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                        |   | AED    |        |   | AED    |   |
|                                        |   |   |        |   |   |   |
| Term      loan                              |   |   | 34,229,734  |   |   |   | 26,839,008 |   |
| Less:      non-current portion of term loan |   |   | (29,706,887 | )      |   |   | (26,839,008 | ) |
|                                        |   |   |        |   |   |   |   |   |
|                                        |   |   |        |   |   |   |   |   |
| Current      portion of term loan           |   |   | 4,522,847   |   |   |   | - |   |
|                                        |   |   |        |   |   |   |   |   |

----

|                            |   | 2008   |       |   | 2007   |   |
|---------------------------------|--------|--------|------------|--------|--------|--------|
|                            |   | AED    |       |   | AED    |   |
|                            |   |   |       |   |   |   |
| Within      one year            |   |   | 4,522,847  |   |   |   | - |   |
| In      the second year         |   |   | 7,268,900  |   |   |   | 3,964,860 |   |
| In      the third to fifth year |   |   | 22,437,987 |   |   |   | 22,874,148 |   |
|                            |   |   |       |   |   |   |   |   |
|                            |   |   |       |   |   |   |   |   |
|                            |   |   | 34,229,734 |   |   |   | 26,839,008 |   |
|                            |   |   |       |   |   |   |   |   |

| -   | First      degree commercial mortgage in favour of the bank to be concluded upon the      completion of the project over the Company’s  assets; |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Assignment      of the standby LC for US$ 2,110,000 received from GSE Power Systems, Inc.      under the simulators supplycontract; |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------|

| -   | Assignment      of all contracts payments from prospective clients in favour of the      bank; |
|---------------|------------------------------------------------------------------------------------------------|

| -   | Post      dated cheques covering installments with fixed date and amount in favour      of the bank; |
|---------------|------------------------------------------------------------------------------------------------------|

| -   | Corporate      guarantees on joint and several basis from the shareholders;      and |
|---------------|--------------------------------------------------------------------------------------|

| -   | Endorsement      of the insurance policies over the Company’s assets to the bank as first      loss payee. |
|---------------|------------------------------------------------------------------------------------------------------------------|

|                                                        |   | 2008   |       |   | 2007   |   |
|-------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                        |   | AED    |       |   | AED    |   |
|                                                        |   |   |       |   |   |   |
| Al      Qudra Holding P.J.S.C.                              |   |   | 20,467,301 |   |   |   | 11,375,961 |   |
| Center      of Excellence for Applied Research and Training |   |   | 9,275,646  |   |   |   | 6,009,023 |   |
| GSE      Power Systems, Inc.                                |   |   | 3,479,513  |   |   |   | 1,730,588 |   |
|                                                        |   |   |       |   |   |   |   |   |
|                                                        |   |   |       |   |   |   |   |   |
|                                                        |   |   | 33,222,460 |   |   |   | 19,115,572 |   |
|                                                        |   |   |       |   |   |   |   |   |

----

|                                           |   |    2008 |       |   | Period      from20      May 2006(inception)      to31 December 2007 |   |
|------------------------------------------------|--------|------------------------|------------|--------|---------------------------------------------------------------------|--------|
|                                           |   | AED                    |       |   | AED                                                                 |   |
|                                           |   |                   |       |   |                                                                |   |
| Purchase      of property, plant and equipment |   |                   | 13,115,753 |   |                                                                |   | 43,352,407 |   |
|                                           |   |                   |       |   |                                                                |   |   |   |
|                                           |   |                   |       |   |                                                                |   |   |   |
| Key      management compensation               |   |                   | 1,237,839  |   |                                                                |   | 277,014 |   |
|                                           |   |                   |       |   |                                                                |   |   |   |
|                                           |   |                   |       |   |                                                                |   |   |   |
| Advances      received from related parties    |   |                   | 14,106,888 |   |                                                                |   | 19,115,572 |   |
|                                           |   |                   |       |   |                                                                |   |   |   |

|                                               |   |    2008 |      |   | Period      from20      May 2006(inception)      to31      December2007 |   |
|----------------------------------------------------|--------|------------------------|-----------|--------|-------------------------------------------------------------------------|--------|
|                                               |   | AED                    |      |   | AED                                                                     |   |
|                                               |   |                   |      |   |                                                                    |   |
| Staff      costs                                   |   |                   | 2,852,418 |   |                                                                    |   | 346,486 |   |
|                                               |   |                   |      |   |                                                                    |   |   |   |
|                                               |   |                   |      |   |                                                                    |   |   |   |
| Amortisation      of intangible assets             |   |                   | 3,921     |   |                                                                    |   | - |   |
|                                               |   |                   |      |   |                                                                    |   |   |   |
|                                               |   |                   |      |   |                                                                    |   |   |   |
| Depreciation      of property, plant and equipment |   |                   | 160,994   |   |                                                                    |   | 1,250 |   |
|                                               |   |                   |      |   |                                                                    |   |   |   |

----

----

|                                               | Effectiveinterest      |   | Less      than3      months |      |   | 3      months to1      year |   |       | 1      year to5      years |   |   | Total      |   |
|----------------------------------------------------|------------------------|--------|-----------------------------|-----------|--------|-----------------------------|--------|------------|----------------------------|--------|--------|------------|--------|
| 2008:                                              | rate                   |   | AED                         |      |   | AED                         |   |       | AED                        |   |   | AED        |   |
| Financial      liabilities                         |                   |   |                        |      |   |                        |   |       |                       |   |   |       |   |
| Non-interest      bearing  instruments   |                   |   |                        | 557,085   |   |                        |   | 33,222,460 |                       |   |   | -          |   |   |   | 33,779,545 |   |
| Variable      interest rate  instruments | EBOR      plus 2% p.a. |   |                        | 1,549,202 |   |                        |   | 2,973,645  |                       |   |   | 29,706,887 |   |   |   | 34,229,734 |   |
|                                               |                   |   |                        |      |   |                        |   |       |                       |   |   |       |   |   |   |   |   |
|                                               |                   |   |                        |      |   |                        |   |       |                       |   |   |       |   |   |   |   |   |
|                                               |                   |   |                        | 2,106,287 |   |                        |   | 36,196,105 |                       |   |   | 29,706,887 |   |   |   | 68,009,279 |   |
|                                               |                   |   |                        |      |   |                        |   |       |                       |   |   |       |   |   |   |   |   |

|                                               | Effectiveinterest                |   | Less      than3      months |    |   | 3      months to1      year |   |       | 1      year to5      years |   |   | Total      |   |
|----------------------------------------------------|----------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|------------|----------------------------|--------|--------|------------|--------|
| 2007:                                              | rate                             |   | AED                         |    |   | AED                         |   |       | AED                        |   |   | AED        |   |
| Financial      liabilities                         |                             |   |                        |    |   |                        |   |       |                       |   |   |       |   |
| Non-interest      bearing  instruments   |                             |   |                        | 144,836 |   |                        |   | 19,115,572 |                       |   |   | -          |   |   |   | 19,260,408 |   |
| Variable      interest rate  instruments | EBOR      plus 2%      p.a. |   |                        | -       |   |                        |   | -          |                       |   |   | 26,839,008 |   |   |   | 26,839,008 |   |
|                                               |                             |   |                        |    |   |                        |   |       |                       |   |   |       |   |   |   |   |   |
|                                               |                             |   |                        |    |   |                        |   |       |                       |   |   |       |   |   |   |   |   |
|                                               |                             |   |                        | 144,836 |   |                        |   | 19,115,572 |                       |   |   | 26,839,008 |   |   |   | 46,099,416 |   |
|                                               |                             |   |                        |    |   |                        |   |       |                       |   |   |       |   |   |   |   |   |