Middle East Specialized Cables Co. — Earnings Release 2011

Feb 25, 2012

MESC Announces Annual Financial Results for the Period Ending 31/12/2011

2370 · 25/02/2012 16:10:38 · Announcement #24348 · View on Saudi Exchange

MESC Announces Annual Financial Results for the Period Ending 31/12/2011

Middle East Specialized Cables Co. (MESC) announces annual consolidated financial results for the period ending 31/12/2011 as followed:

1. The net loss amounts to SR 120.1 million versus net loss of SR 94.9 million for last year an increase of 27%.

2. The loss per share amounts to SR 3.00 versus loss of SR 2.37 for the last year.

3. The gross profit amounts to SR 95.6 million versus gross profit of SR 114.9 million for the last year, a decrease of 17%.

4. The operating loss amounts to SR 20.4 million versus an operating profit of SR 5.7 million for the last year.

5. The reason for incurring operating losses is due to the decline in profit margins in most of the year periods due to the continuing tough competition between cables manufacturers especially in power cables which is being produced in our subsidiaries in Jordan. This was also the main reason for the increase in net losses in addition to the impairment of Goodwill due to writing off the whole balance of goodwill amounting to 70.5 million Riyals during 2011 (77 million in 2010) which is mainly related to our investment in MESC-Jordan (Formerly Jordan New Cable Co.)

Certain comparative figures have been reclassified to conform with the presentation in the current period.

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.