SOURCE: Orascom Construction Industries

September 05, 2005 12:01 ET


Cairo -- (MARKET WIRE) -- September 5, 2005 --

                               NEWS RELEASE


Record Revenue, EBITDA & Earnings

OCI reports 43% growth in consolidated revenue and a 57% rise in net 
income for the six months ended 30 June 2005

Cairo, Egypt - 5 September 2005:  Orascom Construction Industries 
announced consolidated revenue of LE 5,365.0 million with earnings before 
interest, tax, depreciation and amortization (EBITDA) of LE 1313.1 
million and net income of LE 789.7 million for the six months ended 30 
June 2005. The consolidated results included LE 30.9 million in foreign 
exchange losses and LE 74.2 million in negative goodwill amortization 
relating to the acquisition of 50% of BESIX last year.

During the same period last year, OCI reported consolidated revenue of LE
3,754.7 million with EBITDA of LE 1,037.7 million and net income of LE 
504.5 million.

For the second quarter ended 30 June 2005, OCI reported consolidated 
revenue of LE 2,924.9 million with EBITDA of LE 691.7 million and net 
income of LE 449.2 million. The quarter results included LE 5.5 million 
in foreign exchange losses and LE 36.0 million in negative goodwill 

During the same quarter last year, OCI reported consolidated revenue of LE
2,513.3 million with EBITDA of 597.7 million and net income of LE 315.9 

OCI Chief Executive Officer, Nassef Sawiris commented "For the first six 
months of the year, consolidated revenue increased by 43%, EBITDA grew 
27% and net income rose 57% over last year.

Our Construction Group continued to witness significant demand for its
construction services in the Gulf region and North Africa during the 
quarter. The consolidated backlog doubled compared to the same time last
year to reach a record US$ 2.1 billion as at 30 June 05. We anticipate 
continued growth in our backlog and remain confident of our ability to 
take on new projects.

During the quarter, our Cement Group continued to add new production 
capacity through both greenfield projects in new markets and expansion 
projects in existing markets. In June, Algerian Cement Company 
successfully began operations of its second production line ensuring 
their leadership position in the Algerian market. The de-bottlenecking 
project at Egyptian Cement Company has already increased their annual 
production capacity to 8.5 million tons. Rehabilitation work on the first
production line at Tasluja Cement in northern Iraq will be completed in
December.  OCI has received approval to raise its stake in Pakistan Cement
Company from 52.5% to 60.6% and we expect operations to begin during the 
second quarter 06. The EPC contract for our greenfield cement project in 
northern Iraq has been signed and mobilization on site is underway. We 
expect our investment in a new import terminal in Sudan to pave the way 
for a continued flow of cement exports from Egypt. Our announced target 
of 24 million tons in overall cement capacity by year end 2007 is fast 
becoming a reality. 

We remain confident of our ability to open up new frontiers and 
capitalize on growth opportunities in key strategic emerging markets. We 
believe our focus on cement manufacturing will continue to create value 
for our shareholders and that our strong balance sheet will enable us to 
pursue both greenfield projects and selective acquisitions."


CONTACT: Hassan H. Badrawi
Strategic Planning & Investor Relations Manager
Tel: +202 461 1039/1036

Orascom Construction Industries

Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets.  As a cement 
producer, we own and operate cement plants in Egypt and Algeria which 
have a combined annual production capacity of 13.5 million tons.  Our new 
investments in Pakistan, northern Iraq.  Nigeria and Algeria will 
increase our annual production capacity to 24 million tons by 2007.  As a 
contractor, we provide engineering procurement and construction services 
on industrial, commercial and infrastructure projects for private and 
public customers principally in the Middle East, Africa and Central Asia.

For additional information on OCI:

Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 461 1111, Fax: +202 461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI

                      This information is provided by RNS
            The company news service from the London Stock Exchange