SOURCE: Orascom Construction Industries

March 28, 2007 02:03 ET

Orascom Construction Industries S.A.E. announces OCI 2006 Annual Results

Cairo -- (MARKET WIRE) -- March 28, 2007 --

                                                                       NEWS RELEASE

Cairo, Egypt - 28 March 2007


Summary of Results:

-    Consolidated revenue grew 47%, EBITDA rose 69% and net income increased 59%

-    Consolidated Revenue of  $2,865.3 million (LE 16,475.2 million), FYE 2005,  
     $1,953.0 (LE 11,366.6 million)

-    Consolidated Earnings before interest, tax, depreciation and amortization 
     (EBITDA) of $ 778.9 million (LE 4,478.6 million), FYE 2005, $461.3 million 
     (LE 2,684.9 million)

-    Consolidated EBITDA margin increase of 360bp to 27.2%

-    Consolidated operating margin increase of 340 bp to reach 23.2%

-    Consolidated Net Income of $464.5 million (LE 2,670.7 million), FYE 2005, 
     $292.1 million (LE 1,700.2 million)

-    Earnings Per Share of $ 2.30 (LE 13.22) , FYE 2005, $1.49 (LE 8.65)

-    Dividend Per Share of $0.96  (LE 5.50), FYE 2005, $0.34 (LE 2.00)

-    Cash Flow from Operations of $678.9 (LE 3,903.6 million), FYE 2005, $289.6 
     million (LE 1,685.4 million)

-    Return on Equity of 41%, (FYE 2005, 47%)

-    Net Debt/EBITDA of 1.78, (FYE 2005, 2.04)

Summary of Fourth Quarter '06 Performance:

-    Consolidated Revenue of $788.4 million (LE 4,533.1 million), FYE 2005,
     $532.0 million (LE 3,096.3 million)

-    Consolidated EBITDA rose 70% to $192.0 million (LE 1,104.1, FYE 2005, 
     $112.6 million (LE 657.2 million)

-    Consolidated Net Income of $ 114.0 million (LE 655.4 million), FYE 2005, 
     $73.1 million (LE 425.7 million)

-    Consolidated EBITDA Margin increased 318 bp to reach 24%

Operating Highlights by Division:

Cement Group

-    Cement Group EBITDA grew 49% during 2006

-    Egyptian Cement Company contributed 50% of Cement Group EBITDA

-    Algerian Cement Company contributed 31% of Cement Group EBITDA

-    Cement Group sold 13.9 million tonnes during 2006, up 38%

-    Total cement capacity reached 21 million tonnes at the close of 2006

-    Growth driven by healthy pricing and strong organic volume growth

-    Solid increase in aggregates reserves and ready-mix concrete capabilities 
     in Europe

-    Tasluja Cement (N. Iraq), Pakistan Cement and OCI Cimento (Turkey) plants 
     partially contributed for the first time to results during 2006

Construction Group

-    Construction revenue grew 47% and net income increased 135% during 2006

-    Construction Group EBITDA margin remained healthy during 2006 at 14%

-    Construction Group contributed 75% of consolidated revenue, 58% of
     consolidated EBITDA and 43% of consolidated net income

-    Backlog as of 31 December 2006 stood at $2.2 billion

-    Construction Group recorded $2.6 billion in new contract awards during 2006

Nassef Sawiris, Chief Executive Officer said:

Orascom Construction Industries has had another excellent year propelled by
strong demand for both our cement products and construction services.  Our
Cement Group successfully added 7 million tons of new production capacity during
the year and expects to add another 10 million tons of capacity during the next
6 months.  In October, we increased our presence in Spain through the
acquisition of 50% of Grupo GLA, one of the largest independent aggregates and
ready-mix concrete producers in the country.  We also expanded our ready-mix and
aggregates operations in Egypt and Algeria.  Our Construction Group continues to
perform well while playing a key role in identifying new high-return investment
opportunities in both natural gas-based industries and infrastructure
concessions.  Our equity investments in two greenfield fertilizer producers in
Egypt and Algeria should generate substantial returns in the years to come.
Demand for natural gas-based fertilizers is surging due to not only global
consumption growth but also increased demand for agricultural commodity-based
fuels such as corn-based ethanol.  Looking ahead, we will continue to invest our
free cash flow in our growth strategy with a clear view of delivering the
highest returns to shareholders.

For additional information CONTACT:

Investor Relations Department:

Hassan H. Badrawi - Director
Sarah Makiya
Omar Darwazah
Tel:  +202 2461 1039/1036
Fax: +202 2461 9409

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 including a port
operator and an industrial park developer.

For additional information on OCI:

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

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