SOURCE: Orascom Construction Industries

March 05, 2007 02:00 ET

Orascom Construction Industries Expands Aggregates Operations in Europe

Cairo -- (MARKET WIRE) -- March 5, 2007 --NEWS RELEASE

OCI Expands Aggregates Operations in Europe

Group GLA acquires 100% of aggregate operations to raise Group's Spanish reserves by 43%

Cairo, Egypt - 4 March 2007: Orascom Construction Industries announced that Group GLA - 50% owned by OCI - has signed an agreement for a total value of EURO 17.4 million for a 100% stake of Minas Nieves in Corrales de Buelna and for the acquisition of Minas Cau, a quarry operation in Yecla. Combined, the two quarry operations are expected to produce close to 0.8 million tons after the take-over is complete.

Group GLA is the largest independent aggregates and ready-mix concrete producer in Spain. OCI acquired 50% of the Group in October 2006. The Group has activities in aggregates, ready-mix concrete, and clinker grinding throughout Spain with a focus on the Madrid and Valencia markets.

The individual investments reached EURO 12.6 million for Minas Cau and Euro 4.8 million for Minas Nieves. The two barite and calcium carbonate deposits rank amongst Spain's major mining reserves. Minas Cau is South Europe's largest reserve with 80 million tons of carbonate, allowing for a strong market share in Spain as well as market opportunities in Europe and Africa. Minas Nieves contains 4 million tons of barite deposits. Group GLA now controls a total of approximately 268 million tons of various aggregates reserves.

Calcium Carbonate creates new avenues for growth as it is an essential component in a multitude of industries. It is primarily used in pharmaceutical products including cosmetics and sanitary products. It is also used in the manufacturing of ceramics, glass, paper, paint, plastics and concrete. Investing in Barite deposits allows the company to target new markets through the production of special types of concrete that are typically used to shield against laboratories from x-rays and radioactive materials, as well as the production of enamels, ceramic products, sanitary items and high-resistant paint.

OCI Chief Executive Officer, Nassef Sawiris commented," this acquisition affirms Group GLA's strength in generating growth and identifying new opportunities in the industry at extremely attractive valuations. Furthermore, this investment asserts OCI's strategy to expand its current position in ready-mix and concrete operations in markets suffering from structural deficits in cement. Securing these two reserves will allow the Group to capture the opportunities arising from the increased significance of aggregates in Europe and enhances diversification of our client base."

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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. 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, and Saudi Arabia will increase our annual production capacity to 36 million tons. Our Cement Group exports primarily from Egypt to customers in more than 30 countries including the USA, Europe, Africa and the Middle East. We produce and distribute aggregates and ready-mix concrete in Spain, Egypt and Algeria. We also manufacture cement bags in 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, a port operator, an industrial park developer and a natural gas distributor.

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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