SOURCE: Orascom Construction Industries

October 30, 2006 02:01 ET

Orascom Construction Industries announces Acquisition

Cairo -- (MARKET WIRE) -- October 30, 2006 --

                                                    NEWS RELEASE

BESIX Group Announces New Strategic Acquisition

BESIX Group acquires aggregates, ready-mix concrete, asphalt and road construction business in Europe

Cairo, Egypt - 29 October 2006: Orascom Construction Industries announced that BESIX Group - 50% owned by OCI - has signed an agreement for a total value less than US$40 million to acquire two Belgium-based groups, SOCOGETRA and COBELBA, with operations in road construction works, general contracting and aggregates, ready-mix concrete production and asphalt spanning Belgium, France, Luxembourg and Hungary. SOCOGETRA has around 60 years of experience in the road construction industry and is a producer of aggregates, ready-mix concrete and asphalt. Overall, SOCOGETRA has an annual production capacity of 1.1 million tons of aggregates including a 700,000 tons limestone quarry in joint venture with Lafarge. COBELBA is a reputable general contractor established in 1994 with operations in Belgium and Luxembourg. Combined, the business will generate approximately US$ 110 million in consolidated revenue with an EBITDA of US$ 7.5 million during 2006. The acquired companies have no debt on their balance sheets.

BESIX Group Chief Executive Officer, Johan Beerlandt commented "This acquisition further strengthens BESIX in its home market. The diversification into road construction also positions BESIX well to cope with the growing need for infrastructure in Europe and will allow us to leverage this expertise in select opportunities in the Middle East and Africa in the future. Moreover, our investment in aggregates and concrete manufacturing reflects our strong view on the rising importance of these products in Europe."

OCI Chief Executive Officer Nassef Sawiris commented "the BESIX Group acquisition affirms OCI's drive into two strategic activities including infrastructure concessions and construction; and the production of aggregates and ready-mix. We expect to create synergies between both OCI and BESIX in aggregates and ready-mix concrete production and distribution."

The transaction is currently being reviewed by the relevant anti-trust authorities, and as per the transaction agreements, the exact acquisition cost will be disclosed following regulatory approvals.

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CONTACT: Hassan H. Badrawi
Investor Relations Director
Tel: +202 461 1039/1036
Email: hassan.badrawi@orascomci.com

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, Algeria, Turkey, northern Iraq, Pakistan and Spain which have a combined annual production capacity of 21 million tons. Our new investments in Northern Iraq, Turkey, Nigeria, Algeria, and the United Arab Emirates will increase our annual production capacity to 34 million tons. 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. OCI also invests in natural gas-based industries and infrastructure concessions.

For additional information on OCI: www.orascomci.com

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




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