Alujain Corp. — Capital/Financing Update 2008

Aug 11, 2008

ALUJAIN ANNOUNCES UNFORESEEN DELAY IN PP COMPLEX START-UP

2170 · 11/08/2008 15:42:36 · Announcement #13601 · View on Saudi Exchange

ALUJAIN ANNOUNCES UNFORESEEN DELAY IN PP COMPLEX START-UP

NATPET PP Complex in Yanbu has encountered a mechanical failure, according to Mr. Marwan N. Nusair, President of Alujain Corporation (NATPET is a subsidiary of Alujain). During testing of the Complex for start-up, two rotors in the Propane Dehydrogenation (PDH) Plant have been damaged, forcing the plant to postpone the start-up temporarily. This incident has happened at a time when the plant was ready to start up and achieve production in the first week of August 2008, while the PP Plant was ready to receive propylene and begin producing polypropylene. The rotors have been sent out to USA and Dammam for necessary repairs.

The PMC (WorleyParsons), the Contractor (Lurgi GmbH of Germany) and the vendors (General Electric and Dresser Rand of USA) are all working together vigorously to retrieve the situation. Under the current scenario, Lurgi estimates that the plant should be able to start-up and achieve production about end of September 2008. Meanwhile, the PP Plant remains ready to convert the propylene to polypropylene as soon as the PDH Plant is able to supply.

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.