SOURCE: Orascom Construction Industries

October 09, 2006 11:38 ET

Orascom Construction Industries announces New JV in Spain

Cairo -- (MARKET WIRE) -- October 9, 2006 --

                                 NEWS RELEASE

OCI Enters New Joint Venture in Spain

OCI acquires 50% stake in largest independent aggregates and ready-mix concrete
producer in Spain

Cairo, Egypt - 9 October 2006:  Orascom Construction Industries announced that
it has acquired a 50% stake in Group GLA (GrupoGLA), the largest independent
aggregates and ready-mix concrete producer in Spain. The Group was founded by
the prominent Monje Tunon family who will continue to be joint venture partners
in the business. Group GLA has operations in aggregates and ready-mix concrete
throughout Spain with a focus on the Madrid and Valencia markets. The Company
also has operations in mortar and pre-cast concrete production and application.

OCI has acquired Group GLA shares for a total cash consideration of EUR 51.3
million and contributed its 59% stake in its subsidiary Cimentos La Parilla
(CLP), the Spanish owner and operator of a clinker grinding plant located north
of Madrid acquired in late 2005, to arrive at its 50% stake. The new joint
venture partners have committed to an immediate capital increase of EUR 40

Group GLA has an annual quarrying capacity of around 5 million tons of
aggregates on the back of more than 240 million tons worth of reserves spread
over eleven quarries throughout Spain. The Group has an annual production
capacity of 3.5 million cubic meters of ready-mix concrete. The new joint
venture will also now control and operate 1.5 million tons of clinker grinding
capacity in two locations north and south of Madrid respectively which will
result in significant synergies. Group GLA generated revenue of EUR 84 million
with an EBITDA of EUR 10 million during the first half of 2006.

OCI Chief Executive Officer, Nassef Sawiris commented "Spain is the largest
cement consumer in Europe and continues to be one of the world's largest
importers of cement with an annual supply deficit of around 10 million tons. Our
new investment in Spain is a continuation of our long-term strategy to enhance
our presence in markets suffering from structural cement supply deficits and
further affirms our view on the increased significance of aggregates reserves
and distribution in these markets. Going forward, the combined clinker grinding
plants which require up to 1.5 million tons of clinker annually will serve to
alleviate the rising supply deficits in Spain and surrounding markets. The new
consolidated entity is expected to generate revenue in excess of EUR 250 million
per year providing a solid platform for future consolidation activity. During
the past years, our new partners in Spain have demonstrated a strong track
record in generating growth and identifying new investment opportunities. With
EUR 40 million in capital increase proceeds earmarked for investment, the new
joint venture will be well positioned to act as a potential catalyst for further
consolidation in the aggregates and ready-mix concrete sector."


CONTACT: Hassan H. Badrawi
Investor Relations Director
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, 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 33 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:

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