Almarai Co. — Capital/Financing Update 2006

Jun 6, 2006

Almarai Board approves the third strategic 5 year plan, which foresees investment of SR 4 billion in the coming 5 years

2280 · 06/06/2006 15:58:25 · Announcement #8990 · View on Saudi Exchange

Almarai Board approves the third strategic 5 year plan, which foresees investment of SR 4 billion in the coming 5 years

The Board of Directors of Almarai Company approved in its meeting on Tuesday 6th of June 2006 the Third strategic 5 year plan which requires approximately SR 4 billion of capital investment over the period from 2006 to 2011. This significant investment will be made to further strengthen Almarai?s position as the market leader in the GCC food market as well as ensuring the Company?s continued strong profit growth and return on investment.

Based on the Company?s current financial position and future cash flows expected to be generated as part of the 5 Year Strategic Plan, the company will be capable to self finance this capital expenditure. This clearly reflects the Company?s financial health both now and into the future. This follows the Second strategic 5 year plan which saw the company investing approximately SR 2,5 billion.

The Board reiterated that the Company is continually appraising new investment opportunities and should any such investment prove attractive the shareholders will be informed.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.