Algerian Cement Company signs international syndicated loan agreement for US$ 112 million to finance construction of its second production line

Ciro, Egypt June 27,2004: Orascom C onstruction Industries (stock symbols:OCIC.CA / ORCI EY / OCICq.L / ORSD LI) announced that its wholly owned subsidiary Algerian Cement Company (ACC) has signed an international syndicated loan agreement for US$ 112 million to finance construction of its second cement production line with an annual capacity of 2.2 million tons. The second production line is scheduled for completion in mid 2005 and will increase the total plant production capacity to 4.4 million tons per annum making ACC the largest producer of cement in Algeria.

The international syndication includes the European Investment Bank (EIB), the International Finance Corporation (IFC, World Bank Group), Eksport Kredit Fonden (EKF), Deutsche Entwicklungsgeselschaft (DEG), Caisse Nationale d'Epargne et de Prevoyance (CNEP), Citibank Algeria and Citibank International London - all of which participated in the financing of the first production line. The lead arranger for the international syndication was Citibank International London.

OCI Chief Executive Officer, Nassef Sawiris commented "the continued involvement of EIB, IFC, EKF, DEG and our other lenders in financing the second production line at interest rates more favorable than those applicable to the first production line demonstrates their confidence in the track record of OCI in the Algerian market and the ability of ACC to fulfill its financial obligations.

The expansion further contributes to the Algerian economy by creating new employment opportunities, increasing the supply of cement and concrete needed for housing construction, and decreasing reliance on cement imports into Algeria."

OCI focuses on three high growth business activities - construction services, cement manufacturing and infrastructure concessions. Our Construction Group provides engineering, procurement and construction services on industrial, commercial, infrastructure and railway projects for public and private customers in the Middle East and North Africa. Our Cement Group owns and operates cement production plants in Egypt and Algeria. OCI also participates as an equity investor in long-term infrastructure concessions including port operations, industrial parks and natural gas distribution systems.

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© Press Release 2005