MESC starts up employee stock ownership program

The board of directors of the Middle East Specialized Cables Company (MESC):

1. Agreed on the management’s proposal of launching a stock fund for the employees of affiliate MESC Jordan, thereby reducing the stake of MESC Saudi Arabia in the Jordan subsidiary from 53.68% to 49% and assigning the differential of 4.68% (equal to 1,819,474 shares) to the fund. The book value of these shares is around SAR 1.3 million, an amount that stands for the decrease of value of the company’s investment in MESC Jordan in Q1, 2012.

2. Agreed to increase the capital of MESC Ras Al-Khaimah, fully owned by MESC Saudi Arabia, from SAR 20 to 50 million, by capitalization of SAR 30 million of the loan extended by the mother company.

Authorized the management to pursue regulatory procedures in Jordan and UAE.