Almarai Co. — M&A Activity 2009

Jul 1, 2009

ALMARAI COMPANY ANNOUNCES ITS FIRM INTENTION TO ACQUIRE THE ENTIRE ISSUED SHARE CAPITAL OF HAIL AGRICULTURE DEVELOPMENT COMPANY (continues 5 / 11)

2280 · 01/07/2009 09:46:35 · Announcement #15760 · View on Saudi Exchange

ALMARAI COMPANY ANNOUNCES ITS FIRM INTENTION TO ACQUIRE THE ENTIRE ISSUED SHARE CAPITAL OF HAIL AGRICULTURE DEVELOPMENT COMPANY (continues 5 / 11)

5Information relating to Almarai

Almarai commenced business in 1397H (corresponding to 1976G) under the leadership of HH Prince Sultan bin Mohammed bin Saud Al Kabeer. On 19/12/1411H (corresponding to 1/7/1991G), "Almarai Company Limited" was established as a Saudi Arabian limited liability company with Commercial Registration Number 1010084223. In August 2005, Almarai entered into a new phase of its business development and converted from a private company to a joint stock company and its shares were listed on the Exchange. Almarai is headquartered in Riyadh, Saudi Arabia and its registered office address is Exit 7, North Circle Road, Al Izdihar District, P.O. Box 8524, Riyadh 11492, Kingdom of Saudi Arabia. As at the date of this Announcement, Almarai employs approximately 12,000 employees.

Almarai is the largest integrated dairy foods company in the world. The vertically integrated company covers all key supply chain activities, including dairy farming, food processing, marketing, sales and distribution.

For the fiscal year ended 31 December 2008, Almarai generated a consolidated net profit of SAR910.3 million, which represents an increase of SAR243.0 million or 36.4 per cent. compared to the fiscal year ended 2007, when Almarai posted results of SAR667.3 million.

Further details in relation to Almarai will be contained in the Offer Document.

6Information relating to Hadco

Hadco was established in 1403H (corresponding to 1982G), with Commercial Registration Number 3350003931. Hadco is a Saudi Arabian joint stock company with its shares listed on the Exchange. Hadco is currently headquartered in Hail, Saudi Arabia and its registered office address is Hail Qassim Main Road, P.O. Box 106, Hail 81411. As at the date of this Announcement, Hadco employs approximately 1,850 employees.

Hadcos primary business activities are poultry-related (including breeding, broiler production, poultry feed production, processing and distribution) and farming (including grain, fodder and vegetable production, poultry feed, horticulture and cold storage).

For the fiscal year ended 31 December 2008, Hadco generated a consolidated net profit of SAR65.4 million, which represents an increase of SAR11.9 million or 22.2 per cent. compared to the fiscal year ended 2007 when Hadco posted results of SAR53.5 million.

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.