SOURCE: Orascom Construction Industries

May 16, 2007 09:17 ET

Orascom Construction Industries acquires stake in Samba SPA

Cairo -- (MARKET WIRE) -- May 16, 2007 -- NEWS RELEASE

OCI Acquires Algeria's Largest Aggregates Producer

OCI acquires a 60% stake in Samba SPA, the largest aggregates producer in Algeria

Cairo, Egypt - 16 May 2007: Orascom Construction Industries announced that it has acquired a 60% stake in Samba SPA, the largest aggregates producer in Algeria, for a total sum of US$ 8 million. Samba owns and operates a crushed stone quarry which is located in Blida, only 40km from the capital Algiers. Samba controls a total of 60 million tonnes of crushed stone reserves and has a quarrying capacity of approximately 1 million tonnes of aggregates per year. OCI intends to increase the production capacity of their existing plant and equipment up to 5,000 tonnes per day which will double their annual output to 2 million tonnes of aggregates per year through additional investments.

OCI Chief Executive Officer Nassef Sawiris commented: "The acquisition of Samba solidifies our presence as an integrated manufacturer in Algeria. OCI will continue to build up its aggregates and ready-mix operations in core markets in order to enhance the distribution reach for its cement products and to compliment the development of the construction markets in high growth emerging markets which are increasingly demanding ready-mix concrete."

About Orascom Construction Industries' aggregates and ready-mix operations

OCI currently produces and distributes aggregates and ready-mixed concrete primarily in Spain, Egypt and Algeria.

OCI has a 50% stake in Grupo GLA (GLA), the largest independent aggregates and ready-mix concrete producer in Spain. GLA has aggregates and ready-mix concrete operations throughout Spain with market leading positions in Madrid and Valencia. GLA has an annual quarrying capacity of 5 million tonnes of aggregates with more than 240 million tonnes of reserves spread over 11 quarries. GLA has an annual production capacity of 3.5 million cubic meters of ready-mix concrete and is currently constructing a grinding plant south of Madrid capable of producing 600 thousand tonnes of cement annually. GLA also owns 59% of Cementos La Parrilla (CLP) which operates a grinding plant capable producing 1.2 million tonnes of cement annually located near the city of Valladolid, northwest of the capital city Madrid. Together, GLA and CLP will have 1.8 million tonnes of cement grinding capacity located both north and south of Madrid.

OCI Aggregates & Ready-mix Operations

Ready-mix Egypt (RME) is one of the largest aggregates and ready-mix companies in Egypt. During 2006, RME sold 0.5 million cubic meters of concrete and 0.5 million tonnes of aggregates. RME operates 3 sand and gravel quarries and also operates 9 mobile batch plants and 41 concrete truck mixers.

Ready-mix Algeria (RMA) is one of the largest aggregates and ready-mix companies in Algeria. RMA works closely with the sales team at Algerian Cement Company, an OCI subsidiary, to provide customers with high quality and timely ready-mix products. During 2006, RMA acquired rights to operate 5 aggregates quarries with ample reserves and also purchased 30 concrete truck mixers, 6 mobile pumps, 4 concrete tracing booms, 2 stationary pumps and 8 batch plants.

In October 2006, the BESIX Group announced the acquisition of Socogetra which has 60 years of experience in the road construction industry and is a producer of aggregates, ready-mix concrete and asphalt. Socogetra has an annual production capacity of 1.1 million tonnes of aggregates including a limestone quarry capable of producing 700,000 tonnes annually which is owned in joint venture with Lafarge. OCI owns 50% of the BESIX Group.

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For additional information CONTACT:

Investor Relations Department:

Hassan H. Badrawi - Director

Sarah Makiya

Omar Darwazah

Tel: +202 2461 1039/1036

Fax: +202 2461 9409

Email: hassan.badrawi@orascomci.com

Orascom Construction Industries

Orascom Construction Industries (OCI) is a leading cement producer and construction contractor active in emerging markets. Based in Cairo, we employ more than 40,000 people in over 20 countries. Working together with our employees, business partners and customers, we are helping to build the future in developing countries around the world.

As a cement producer, we own and operate cement plants in Egypt, Algeria, Turkey, Pakistan, northern Iraq, and Spain which have a combined annual production capacity approaching 21 million tons. Our new investments in northern Iraq, Turkey, Nigeria, Algeria, the United Arab Emirates, Saudi Arabia and Syria will increase our annual production capacity to 39 million tons. We export cement primarily from Egypt to customers in more than 30 countries including the USA, Europe, Africa and the Middle East. We produce and distribute aggregates, ready-mix concrete and cement bags primarily in Spain, Egypt and Algeria.

As a contractor, we provide engineering procurement and construction services on large, complex and demanding industrial, commercial, water/sewage, transportation, telecommunications, maritime, tourism and railway projects for private and public customers principally in the Middle East, Africa and Central Asia. Our Construction Group is active in over 100 projects in more than 20 countries. Through partnerships with industry leaders, we also manufacture fabricated steel products as well as architectural curtain walling and window systems. As part of our long- term strategy to create a sustainable flow of construction opportunities, we also have investments in natural gas industries, including fertilizers and in infrastructure concessions including a port operator and an industrial park developer.

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 2461 1111, Fax: +202 2461 9400,

OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI

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