SAUDI AMIANTIT SAYS BUSINESS NOT IMPACTED BY INDIA SUBSIDIARY DIFFICULTIES

Further to its announcement on Tadawul on August 20, 2013 regarding its affiliate Amiantit Fiberglass Industries India, Saudi Arabian Amiantit Company announces that, regarding the company’s filing of Reference Act to competent bodies in India, to amend the financial status of the company, as it incurred accumulated losses for financial year ended March 31, 2013 exceeding its net worth (i.e. paid up share capital and free reserves); following heavy losses to competition and a sharp decline of sales in 2011, 2012 and the first quarter of 2013; the Corporation Bank in India put the company’s fixed assets and inventory under a ‘symbolic reservation.’ That decision is expected to hinder the pursuit of filing procedures.

Such developments will have no impact on consolidated financial results of Saudi Arabian Amiantit Company for these reasons:

• The Indian affiliate is a limited liability where partners’ liability is limited to their stakes in said company.

• Saudi Amiantit took provisions for the investment and accounts receivable in Q2, 2013.

• The company did not include the Indian subsidiary in its financial lists for the period ended June 30, 2013.

Hence the current situation will have no impact on local and international operations of Saudi Amiantit company. The company asserts that it will continue the closure and disposal of infeasible operations that could adversely impact the group’s results.