Riyadh, 22 January 2006: The Saudi Arabian Fertilizer Company (SAFCO) reported a record 2005 net profit of SR 1.1 billion compared to SR 660 million in 2004.  4Q2005 net profits were SR 281.4 million compared to SR 251.5 million in the same period in 2004.

Mohamed Al-Mady, SABIC Vice Chairman & CEO and SAFCO Chairman & Managing Director said, "SAFCO's profits in 2005 were the highest ever reported, exceeding the previous record profits reported in 2004 by 67 percent.  This is due to price increases in major products, a 2 percent rise in production and a 10 percent increase in overall sales in 2005 compared with 2004.

"The 4Q2005 18% decrease in profits compared to the profits in 3Q2005 can be attributed to a decrease in the volume of sales by 13% and the rise of costs associated with the periodical maintenance of SAFCO-3 plants in Al-Jubail Industrial City.  The SAFCO-4 expansion project is expected to begin commercial production in 2Q2006."

Mr. Al-Mady praised the sustained efforts of the Board of Directors and employees whilst encouraging further achievement.

-Ends-

About Saudi Basic Industries Corporation
Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 150 billion), and one of the world's 10 largest petrochemicals manufacturers. The company is among the world's market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.

SABIC's profit rose to a record SR 14.2 billion (US$ 3.8 billion) in 2004, a 112% increase on 2003 and the company's highest profit since inception. Sales revenues for 2004 totaled SR 68.5 billion (US$ 18.3 billion), an increase of 47% on revenues in 2003 making SABIC the largest and most profitable public company in the Middle East.

SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals.  The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India.  SABIC has more than 16,000 employees worldwide.

SABIC has two large production sites in Saudi Arabia - in Al-Jubail and in Yanbu - comprising 18 world-scale complexes.  Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 42.9 million metric tons of production in 2004.

Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.

SABIC Europe, headquartered in Sittard, the Netherlands, employs 2,300 and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs.  In 2004, SABIC Europe sold 6 million tons of polymers, base chemicals and intermediates, mainly in the European market.

Press Release 2006