SOURCE: Orascom Construction Industries

August 29, 2007 02:56 ET

Orascom Construction Industries - Joint Venture

Cairo--(Marketwire - August 29, 2007) - NEWS RELEASE

OCI Announces New Cement Investment in South Africa

OCI plans to invest US$ 440 million in a new greenfield cement plant in the North West Province of South Africa with an annual capacity of 2 million tonnes. OCI awards equipment supply contracts to Polysius and Siemens.

Cairo, Egypt - 29 August 2007: Orascom Construction Industries (OCI) today formally announced the launch of Mafikeng Cement Company (MCC) in the North West Province of South Africa which will build and operate a state-of-the-art cement plant with a production capacity of 2 million tonnes per year. OCI owns 67.5% of the new start-up venture. Minority partners in MCC include the Barolong-Boo Rapulana Traditional Council and the Barolong-Boora Tshidi Traditional Council each representing their respective local communities, as well as the Osman Family Trust, Bazan Family Trust, Lezak Family Trust, who together with the Traditional Councils are broad-based black economic empowerment (BBBEE) groups, and Redsun Enterprises.

The total investment cost of the project is expected to reach approximately US$ 440 million (R 3.2 billion). The plant is expected to begin production during 2010.

The launch of the new cement venture was announced at an event held today in Mafikeng in the Ngaka Modiri Molema District of the North West Province attended by local and national government dignitaries, members of the Traditional Councils and their respective communities alongside the shareholders of MCC.

At the ceremony, OCI signed a plant equipment order with Polysius, supplier of plant design and main machinery, and a contract with Siemens for electrical and automation equipment / materials for the Mafikeng cement plant.

OCI Chief Executive Officer, Nassef Sawiris commented "We are very pleased to announce our new investment in South Africa. We are committed to deliver a state-of-the-art cement plant which will cater to the fast-growing demand for cement in the country and offer the highest quality products. Our new subsidiary will contribute to the development of the North West Province of South Africa through numerous ways including the creation of new job opportunities during and after the construction of the plant."

Mr. Sawiris added "We are extremely pleased to partner with the local communities who have played a vital role in bringing this project to life. We are also grateful to the local government of the North West Province, the South African government, especially the Department of Trade & Industry, and the Egyptian diplomatic team for their continued support of the project. We are proud to be able to further contribute to the South African government's black empowerment initiative through partnering with a diverse base of BEE shareholders."

On OCI Cement Group capacity growth, Mr. Sawiris added "With the addition of MCC, OCI Cement Group will achieve an annual production capacity of 44 million tonnes by 2010." OCI expects to commission greenfield cement plants in Algeria, United Arab Emirates and northern Iraq during the fourth quarter of 2007.

The deal was hailed by Minister Mpahlwa, South Africa's Minister of Trade and Industry, as "ensuring that the country has the resources and opportunities it needs to facilitate economic growth. This deal is a good example of the implementation of the Industrial Policy which aims inter alia to support broad based growth and contribute to economic development on the African continent by actively supporting its productive capabilities and more developmental regional trade integration."

About 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 tonnes. Our new investments in northern Iraq, Turkey, Nigeria, Algeria, the United Arab Emirates, Saudi Arabia, Syria, the Democratic People's Republic of Korea and South Africa will increase our annual production capacity to 44 million tonnes. Our Cement Group exports from Egypt and Algeria 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. We also have investments in natural gas industries, such as fertilizer producers, and in infrastructure concessions, such as a port operator and an industrial park developer.

For additional information on OCI: www.orascomci.com

For additional information CONTACT:

OCI Investor Relations Department:

Hassan H. Badrawi

Email: hassan.badrawi@orascomci.com

Omar Darwazah

Email: omar.darwazah@orascomci.com

Tel: +202 2461 1039/1036/0727

Fax: +202 2461 9409

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

Brunswick South Africa +27 11 268 5750

Roderick Cameron: Tel: +27 82 887 4593

Anne Dunn: Tel: +27 82 448 2684

Nonhlanhla Kumalo: Tel: +27 83 634 6840


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