Nile Industries Ltd.
TSX VENTURE : NLE.P

July 11, 2008 18:07 ET

Nile Industries Gives Corporate Update Regarding the Qualifying Transaction With Tiles From the Nile and Announces Restating Three Quarters of Financial Statements and MD&A

CALGARY, ALBERTA--(Marketwire - July 11, 2008) - Nile Industries Ltd. (TSX VENTURE:NLE.P) ("Nile"), a capital pool company pursuant to the policies of the TSX Venture Exchange (the "Exchange"), announces that it will restate its Q2 and Q3 2007 financial statements and MD&A as per September 30, 2007 MD&A in order to show the cost of options granted to management and agent options which were incurred in Q2 2007. The financial statements and MD&A for Q2 of 2008 will also be restated to include the correct comparative periods and to include the expenses to be incurred with regards to the qualifying transaction and the costs expected to be incurred until the completion of the qualifying transaction.

Update on the Qualifying Transaction with Tiles From The Nile ("Tiles"):

Nile and Tiles are in the process of finalizing the required financial statements for inclusion in the Qualifying Transaction Information Circular.

Nile is planning to finalize the information circular on or about the end of August 2008.

About Tiles From The Nile Ltd.

Tiles an industry leader in the Floor Covering, Sanitary Fixtures, Granite Countertops, Window Treatments, Upholstery, Furniture and Home Decor and has been operating in Calgary since 2002. The primary business of Tiles is to supply builders, architects, interior designers and homeowners with unique products and high level of services that go beyond the current service in the market. The advantages of Tiles are:

- Excellent name with a cachet around which a franchise can be built.

- Access to inexpensive high quality offshore suppliers with distinctive and unique products from Egypt and China.

- Growing sales and expansion to three stores in Calgary.

- Well managed with excellent customer reputation.

- Lastyear, Tiles acquired Chinook Upholstery, Drapery and Flooring Ltd., a flooring, drapery and upholstery stores. In addition, Tiles acquired the AL Fayed Gallery furniture store. Recently, Tiles bought the inventory, furniture and displays of a retail-flooring store that had closed down in anticipation of the opening Tiles' fourth Calgary location.

About Nile Industries Ltd.

Nile Industries is a capital pool company pursuant to the policies of the TSX Venture Exchange. On February 9, 2007, Nile completed its initial public offering.

NILE INDUSTRIES LTD. ("NLE.P")

TSX Venture Tier 2 Company

For further information, please refer to the Company's Prospectus dated December 8, 2006.

Forward-looking Information

Completion of the Qualifying Transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange requirements, majority of the minority shareholder approval. Where applicable, the Qualifying Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Qualifying Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Qualifying Transaction, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Qualifying Transaction and has neither approved nor disapproved the contents of this press release.

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