JAZAN DEVELOPMENT ANNOUNCES THE PLACEMENT OF SELONDA (UK) UNDER ADMINISTRATION

Jazan Development Company (Jazadco), holding 50% of the share capital of Selonda (UK) Ltd, hereby announces that Selonda (UK) Ltd has been placed under Administration due to irresolvable financial crisis in spite of the continuous financial support of its shareholders. Subsequently the Administrator, who was appointed by Selonda UK Board on 10/2/1433H corresponding to 4/1/2012 has sold the company and its assets to a third party for 1.2 million STG, on 11/2/1433H corresponding to 5/1/2012 being the best among the available offers and informed the Selonda UK Board members about the sale on the same date. The sale value will meet the bank loans while the rest of the creditors shall be passed on to the third party.

This decision was taken by Selonda (UK) Board of Directors as the best legal and financial solution to avoid additional liabilities and losses for the company and its shareholders. The effect of this decision on Jazadco will be a loss of 12,029,451 Saudi Riyals which will be reflected in the company's financial statements for the year ending 31/12/2011.