CapitaLand Limited ("CapitaLand"), as manager of the Raffles City Bahrain Fund (the "Fund"), wishes to state that whilst substructure works for the Raffles City Bahrain project are progressing on site and nearing completion, the main construction contract tender has yet to be called. CapitaLand and the shareholders of the Fund are evaluating various options for the project in the light of the current economic challenges. It is foreseen that construction costs will continue to decline which will benefit the project. At the opportune time, CapitaLand will initiate the main construction contract tender process. This is typical of large integrated projects and will help to conserve shareholder funds as well as reap the benefits of future lower construction costs. The Raffles City Bahrain project is wholly-owned by the Fund in which CapitaLand has a 37.1% interest. If and when there are any material developments, CapitaLand would make the appropriate announcement on the SGX-ST in accordance with the Listing Rules of the SGX-ST.