The major market offensive will be led by a multimillion dollar building project by Fouad Alghanim & Sons Automotive Co. W.L.L. which will incorporate all three brands in a state-of-the-art automotive city. For the Audi brand alone an area of more than 5,000 sqm is being redeveloped to include capacities for the showroom display of 80 new and used cars as well as 45 work bays for qualified servicing of the

vehicles.  As one of the first in the world, the concept for Kuwait City follows the Audi terminal showroom concept, which has been developed by the German headquarters of AUDI AG to specifically cater for the needs of automotive retail of the future. The start of construction of the Audi terminal is scheduled for Q1 2008. The other brands will follow suit to complete the automotive city. Ernst Hasbach, Managing Director of Audi Volkswagen Middle East FZE comments:

'Kuwait is one of the most important markets in the Middle East especially in terms of growth of the premium automotive sector. Under the lead of Fouad Alghanim and Sons Automotive we have experienced a volume increase of over 300% and we have every indication that our Audi brand will continue to grow substantially in Kuwait. With this project Fouad Alghanim & Sons Automotive (FAA) will set a lighthouse for the future of our brands.'

Mohammed Fouad Alghanim, Group Vice chairman of Fouad Alghanim and Sons Group, stated: 'We are immensely proud of the strong partnership and vision shown by Audi, Škoda and Lamborghini. The commitment to developing their long term customer connection to the people of Kuwait through us is testament to the strategic importance of the Kuwait market and the need for a dedicated and capable long term partner. FAA will continue to undertake warranty service work for Volkswagen vehicles sold by them.'