SOURCE: Orascom Construction Industries

July 11, 2006 11:44 ET

Orascom Construction Industries announces OCI Begins Production in Iraq

Cairo -- (MARKET WIRE) -- July 11, 2006 --


                                                                  NEWS RELEASE

OCI Begins Cement Production in Northern Iraq

OCI Cement Group commissions cement facility in northern Iraq

Cairo, Egypt - 11 July 2006:  Orascom Construction Industries announced that
rehabilitation of the 2.3 million ton per year Tasluja cement factory in
Northern Iraq has been completed for a total investment cost of US$ 70 million.
An OCI-led consortium was awarded a tax-exempt 12-year lease for the Tasluja
cement plant located near the city of Suleimaniyah in the Kurtdistan region of
Iraq in November 2004. The OCI consortium includes the Farouk Rasool Group, a
prominent industrial group in Northern Iraq. Under the terms of the contract,
the OCI consortium is responsible for the rehabilitation, operation and
maintenance of the plant and receives a right of first refusal on any potential
privatization of the plant. Since the award date, OCI has increased its stake in
the leasing vehicle from 51% to 60%. The Tasluja plant has two dry process
production lines supplied by ThyssenKrupp Polysius with a designed production
capacity of 2.3 million tons annually. An OCI Construction Group / Polysius team
completed the rehabilitation project.

OCI Chief Executive Officer, Nassef Sawiris commented "we are committed to raise
our production capacity in Northern Iraq to over 5 million tons during 2007. We
hope the new capacity in the Tasluja plant and the Bazian greenfield currently
under construction (3 million cement tons annually) will help alleviate the
inconsistent imports coming into Iraq and contribute to the reconstruction
process. The rehabilitation process was a difficult one given the severely
battered condition of the plant 2 years ago but our technical team has delivered
once again." Mr. Farouk Rasool commented "the successful commissioning of the
Tasluja plant is an important milestone in the industrial development of the
region having created numerous employment opportunities and brought in foreign
direct investment."

The OCI Cement Group currently owns and operate cement plants in Egypt, Algeria,
Northen Iraq, Turkey and Spain which have a combined annual production capacity
of 18 million tons.  Our new investments in Pakistan, northern Iraq, Turkey,
Nigeria, Algeria, and the United Arab Emirates will increase our annual
production capacity to 31 million tons by 2007.

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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, Northen Iraq, Turkey and Spain
which have a combined annual production capacity of 18 million tons.  Our new
investments in Egypt, Pakistan, northern Iraq, Turkey, Nigeria, Algeria, and the
United Arab Emirates will increase our annual production capacity to 31 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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