Egypt's leading automotive producer joins forces with the world's leading bus manufacturer to build a bus assembly plant in Suez, Egypt, targeting local and export markets

Cairo, Egypt -- 20 August 2008: GB Auto S.A.E. (Auto.CA) and leading global bus-body manufacturer Marcopolo S.A. of Brazil have held a signing ceremony for their agreement to establish a joint-venture bus assembly facility in Suez, Egypt.

Dr. Raouf Ghabbour, CEO of GB Auto, and Marcopolo Director of International Operations Ruben Bisi announced the birth of the joint venture on 20 August 2008, at a ceremony held in Cairo crowning their contractual agreement made on June 25, 2008.

At the same event, Ghabbour also announced GB Auto will assemble in Egypt the Volvo B9R "Oreon," a 51-seat passenger bus. The B9R is considered one of the world's most advanced coach and freightage buses. "As Egypt's leading assembler of commercial vehicles, we're delighted to be introducing the new Volvo model, which we see as the 'father' of a new family of vehicles that will eventually be marketed by GB Polo in the region's highly promising export markets," said Ghabbour.

"We are very excited to be creating a joint-venture production facility with Marcopolo that will cater to the domestic market and target important export territories in the Middle East, Europe and Africa," Ghabbour told reporters. "Marcopolo is one of the most recognized brands in the global bus industry, so our combined expertise will make this a significant international player that extends the reach of both of our existing brands.

"This agreement again underscores that GB Auto has the management, vision and capital to lead the regional automotive industry," Ghabbour noted. The new venture will operate through GB Polo Bus Manufacturing Company S.A.E.

(GB Polo), a subsidiary of GB Auto that will be 51% owned by GB Auto and 49% owned by Marcopolo. The project is expected to cost US$ 70 million including initial working capital requirements.

Operating under joint management, the GB Polo assembly line will use Marcopolo's state-of-the-art production technologies. GB Polo will market GB Auto's current bus lineup as well as new models to be introduced by Marcopolo.

"This project will combine Marcopolo's global expertise with GB Auto's unparalleled distribution networks and assembly know-how. It's an exciting time to be doing business in the Arab world, and we're delighted to be here in Cairo for the signing," Marcopolo's Bisi told reporters.

The first new-model bus bodies are expected to roll off the GB Polo assembly line in 2009. The facility is targeting a production capacity of 1,500 units in its first year of operations and could produce as many as 8,000 units a year by 2014.

Ghabbour announced GB Auto will start assembling in Egypt the Volvo B9R "Oreon" 51-seat passenger bus. Volvo will supply the chassis for the vehicles, while GB Auto will build the bus bodies and assemble the vehicles. The made-in-Egypt Oreon will be sold to both local and export markets.

-Ends-

About GB Auto S.A.E.
GB Auto S.A.E (Stock Symbol: AUTO.CA) is the leading automotive producer and distributor in the Egyptian market. The company assembles, imports and distributes passenger cars under the Hyundai brand as well as commercial vehicles (buses, trucks and trailers) under the Volvo, Mitsubishi, Hyundai and Ghabbour brands. In addition, it distributes motorcycles and scooters under the Bajaj brand, tires under the Lassa and Double Coin brands and construction equipment under the Volvo and Linde brands.

The company also operates the largest network of service centers and automotive accessories sales points in Egypt and operates fleet leasing and vehicle financing arms. GB Auto is headquartered in Giza, Greater Cairo Area, Egypt. (www.ghabbourauto.com)

About Marcopolo S.A.
Marcopolo (Stock Symbol: POMO) is a leading global producer of mass-transportation vehicles headquartered in Brazil. The company operates 10 facilities in seven countries including three plants in Brazil (two in Caxias do Sul- RS, another in Duque de Caxias - RJ), two in Russia and one each in Mexico, Colombia, Portugal, South Africa and India.

In 2007, Marcopolo's revenues grew 21.6% to US$ 1.2 billion, a figure that exceeded the company's forecast by 15% and made it Marcopolo's best-ever financial year. Marcopolo's global production topped 17,807 bus units in 2007, a 20% rise over 14,824 units the previous year.

Since starting operations in 1949, Marcopolo has manufactured more than 200,000 buses; its products now operate in Brazil and more than 100 other countries around the world.

For additional information, please contact:
Bassem El Shawy
Investor Relations Officer
Email: belshawy@ghabbour.com
Direct: +20 (2) 3910 0517

Ms. Marian Zakaria, Assistant
Email: mzhabib@ghabbour.com
Mobile: +20 (0) 10 493-3326
Tel: +20 (0) 2 3539 1201 / 3539 3037
Fax: +20 (0) 2 3539 1198
Address: Cairo-Alexandria Desert Road
Km. 28
Abou Rawash Industrial Zone
P.O. Box 120, Giza, Egypt

© Press Release 2008