SOURCE: Orascom Construction Industries

July 20, 2005 11:00 ET


Cairo -- (MARKET WIRE) -- July 20, 2005 --

                 NEWS RELEASE

                                                           FOR IMMEDIATE RELEASE

OCI Raises its Stake in Pakistani Subsidiary

OCI receives regulatory approval to raise its stake in Pakistan Cement 
Company to 60.6%

Cairo, Egypt - 20 July 2005: Orascom Construction Industries announced 
that it has received approval from the Securities & Exchange Commission 
of Pakistan to convert US$ 19.2 million in debt it had purchased earlier 
in the year into equity. OCI also secured shareholders' approval for the 
debt-to-equity conversion. Effectively, the conversion which will take 
place at par value will raise OCI's stake in Pakistan Cement Company 
(PCC - formerly known as Chakwal Cement Company) from 52.5% to 60.6%. OCI 
Chief Executive Officer, Nassef Sawiris commented "Our Pakistani 
subsidiary is scheduled to start operations in mid 2006. We believe 
strong growth opportunities lie ahead in the Pakistani cement market. Our 
appetite for additional equity in this project reflects our confidence in 
the growth prospects of the Pakistani economy."

To complete the construction of the new cement plant, PCC has signed 
agreements with a syndicate of 11 Pakistani banks and the Eksport Kredit-
Fonden (EkF), the Denmark-based international export credit agency, for 
the equivalent of US$ 130 million in limited recourse project finance 
debt which will be provided in Pakistani Rupees. The syndication of 
Pakistani banks will provide US$ 80 million in debt finance to be repaid 
over a period of seven years with a grace period of two years. EkF has
agreed to guarantee US$ 50 million in debt finance which will also be 
provided by three Pakistani banks to finance additional importation of 
equipment and instrumentation required to complete the assembly of the 
plant. The EkF guaranteed portion of the loan will be repaid over a 
period of eight years with a similar grace period of two years.

PCC owns the property, plant and equipment of a 2.2 million ton per year 
cement plant supplied by F.L.Smidth of Denmark located along the Lahore-
Islamabad highway in the Punjab Province of northern Pakistan. 
Construction work is scheduled to take 15 months with the plant beginning 
operations in August 06. Demand for cement in Pakistan was up 20% during 
the nine months ended 31 March 05 reflecting increased domestic 
consumption and exports primarily to Afghanistan.

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

For additional information on OCI:

Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets.

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