AMIANTIT PROFITS REACHED SAR 1.5 MILLION FOR THE 2^nd QUARTER AND LOSSES DECLINED TO SAR 16.6 MILLION FOR THE 1^st HALF OF THE YEAR

Dammam July 17, 2005 - Saudi Arabian Amiantit Company announced that the results of its un-audited business for the 2^nd quarter has revealed positive profit indicators, passing the equilibrium point and scoring a net profit of SAR 1.5 million before deducting the Zakat, compared with the results of the 1^st quarter in which the Company losses were approximately SAR 18.1 million. Accordingly, the Company has succeeded in reducing its losses for the six month period from SAR 18.1 million to 16.6 million. The Company announced that it will publish its audited financial statements for the six month period at the beginning of next August.

Commenting on the reasons for the improved results for the 2^nd quarter, the Company explained that adopting the restructuring policy of its operations and investments during the present year was an important factor. It is expected that the Company will continue implementation of the restructuring plan and will also continue its programmes that aim at reducing costs and improving performance, which is expected to generate better results for this year.

It is worth mentioning that Amiantit has recently obtained approval from the Capital Money Authority (CMA) to increase its capital from SAR 770 million to SAR 1.155 billion through issuance of 7.7 million rights issues that represent 50% of the presently circulated shares. The value of the new share will be SAR 55. Subscription in the new shares will be limited to current shareholders who are registered in Amiantit’s records on July 18, 2005, the date of the next Extraordinary General Assembly. Accordingly, each shareholder who assumes his priority right and subscribes at 50% of the owned shares or less will be entitled to obtain the shares for which he subscribed. However, if he subscribed at more than 50% of the shares he owns, then the additional subscribed shares will be divided to subscribers interested in increasing their shares on the basis of proportionality.

The Consulting Centre Group (CCG), the financial consultant and the subscription manager, will supervise and coordinate the subscription process through the designated banks, which are the Saudi Hollandi Bank and the Saudi Fransi Bank. The Company will announce the subscription date later.

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