CONTINUED LOSS MAKES AMIANTIT’S INDIA SUBSIDIARY A SICK COMPANY

Saudi Arabian Amiantit Company announces that its subsidiary in India, AMIANTIT FIBERGLAS INDUSTRIES INDIA LIMITED, (AFIIL) has filed a reference Act, (SICA) to the Board for Industrial and Financial Reconstruction (BIFR). The subsidiary is considered sick as its accumulated losses for the financial year ending March 31, 2013 have exceeded its net worth (i.e. paid up share capital and free reserves).This decision comes after the company incurred heavy losses due to competition and decline of its sales over the years 2011 and 2012, as well as in the first months of 2013. It is expected that the BIFR will shortly issue a registration number for listing and hearing of the matter. It will later on decide on the availability and viability of a revitalization plan, or upon the liquidation of the company. Saudi Arabian Amiantit Company is determined to cease or dispose of non-viable operations which could repeatedly hamper the results of the group. Saudi Arabian Amiantit Company has fully impaired its remaining investment and receivables on AFIIL over the second quarter 2013, the impact of the same being estimated at an amount of SR 8.2m.