SOURCE: Orascom Construction Industries

July 16, 2007 04:43 ET

Orascom Construction Industries S.A.E. announces OCI Invests in DPRK Cement

Cairo--(Marketwire - July 16, 2007) -


NEWS RELEASE


OCI Invests in DPRK Cement Industry


OCI signs agreement to acquire 50% of Sangwon Cement through capital increase
with aim to modernize and upgrade plant

Cairo, Egypt - 16 July 2007:  Orascom Construction Industries ("OCI") has
announced that it has signed an agreement with the state-owned Pyongyang
Myongdang Trading Corporation to acquire a 50% stake in Sangwon Cement which
owns and operates the cement plant nearest to Pyongyang, the capital city of the
Democratic People's Republic of Korea ("DPRK"). The plant, which is originally
supplied by German equipment supplier KHD, has two dry-process production lines
with a combined design-based nominal capacity of 2.5 million tonnes per year.

Based on the signed agreement, OCI will acquire 50% of Sangwon Cement for a
total value of US$ 115 million. The acquisition will take the form of a capital
increase from which the proceeds will be used to modernize, rehabilitate and
upgrade the plant capacity to reach 3 million tonnes per year. The proceeds will
also be used to invest in ready-mix concrete and distribution activities. In
addition to the Sangwon cement plant, the agreement also includes mining
operations related to the cement production including limestone quarries, a coal
mine and a gypsum quarry. It also includes a dedicated hydroelectric power
station near the plant. The plant also has its own railway connection to the
national railway grid which connects the plant to the Port of Nampo thus
allowing for exports.

Technical proposals for the rehabilitation and upgrade of the Sangwon cement
plant are currently being prepared by F.L.Smidth, Polysius and KHD, all global
leaders in the field of cement plant equipment technology. With surveys of the
plant already completed, a decision on the award is imminent and should be
finalized during the third quarter. Work on the plant is expected to begin soon
after.

OCI Chief Executive Officer, Nassef Sawiris commented "we have been impressed by
the level of professionalism and technical know-how demonstrated by our
partners. We have sensed an earnest eagerness for development and modernization.
Our investment in cement marks the beginning of a variety of investments
including the potential establishment of an economic trade zone in the northern
part of the country. We are also exploring opportunities in the mining and power
sectors. We hope that our pioneering efforts in the DPRK market will contribute
to the development of the country and create significant value to our
shareholders. "

New investments in northern Iraq, Algeria, the United Arab Emirates, Nigeria,
Turkey, Saudi Arabia, Syria and DPRK will increase the OCI Cement Group annual
production capacity to 42 million tonnes.

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For additional information CONTACT:

Investor Relations Department:

Hassan H. Badrawi
Email: hassan.badrawi@orascomci.com

Omar Darwazah
Email: omar.darwazah@orascomci.com

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 tonnes.  Our new investments in
northern Iraq, Turkey, Nigeria, Algeria, the United Arab Emirates, Saudi Arabia,
Syria and North Korea will increase our annual production capacity to 42 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. 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: www.orascomci.com



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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