Cairo -- (Marketwire) -- 08/28/08 --

Cairo, Egypt / August 28, 2008, 09:30 AM

OCI Announces Record Q2 2008 Results
Summary of Consolidated Results for the Second Quarter:
  - Consolidated revenue grew 57.5% to USUSD 1,013.3 million (LE 5,542.5
    million) versus USUSD 643.5 million (LE 3,670.2 million) in Q2 2007
  - EBITDA rose 146.1% to USUSD 258.7 million (LE 1,414.9 million) versus
    USUSD 105.1 million (LE 599.6 million) in Q2 2007
  - Consolidated EBITDA margin increased by 920bps to 25.5% versus
    16.3% in Q2 2007
  - Net Income from continuing operations grew 220.2% to USUSD 239.5
    million (LE 1,309.8 million) versus USUSD 74.8 million (LE 426.5
    million) in Q2 2007
  - Consolidated backlog reached a record USUSD 7 billion, reflecting
    growth of 49.0% over the backlog as at December 31 2007 and 103.0%
    growth over the same time last year
Summary of Consolidated Results for the First Half Ended 30 June 2008:
  - Consolidated revenue grew 48.7% to USUSD 1,766.8 million
    (LE 9,664.4 million) versus USUSD 1,187.9 million
    (LE 6,774.4 million) in H1 2007
  - EBITDA rose 114.0% to USUSD 423.3 million (LE 2,315.2 million) versus
    USUSD 197.8 million (LE 1,127.9 million) in H1 2007
  - Net income from continuing operations increased 206.0% to
    USUSD 439.2 million (LE 2,402.5 million) versus USUSD 143.5 million
    (LE 818.7 million) in H1 2007
  - Consolidated EBITDA margin of 24.0%
Statement from the Chief Executive Officer - Nassef Sawiris
Orascom Construction Industries (OCI) has reported record second
quarter. Our second quarter witnessed a strong rise from the previous
first quarter with 52.5% growth in EBITDA and 21.3% growth in net
income, reflecting rapidly improving fundamentals in the fertilizer
sector and accelerated performance by our Construction Group.  During
the second quarter, EBITDA and net income from continuing operations
increased 146.1% and 220.2% respectively compared to the same quarter
last year. Also during the quarter, our consolidated SG&A dropped
200bps to a more steady-state level.

In May 2008, the Egyptian Government introduced a 20% corporate income
tax on free zone companies including our wholly owned subsidiary
Egyptian Fertilizer Company (EFC). The second quarter results
already reflect tax provisions as per the new regulations.
In Algeria, we view the recently announced investment regulations as
being positively aligned with our strategy to expand our investments
in Algeria. The decrease in corporate income tax to 19% down from 25%
positively impacts our profitability starting with
2008. Algeria comprises 22% of the Construction Group backlog.

The Construction Group reported a robust second quarter. Rising
billing on newer higher-margin projects and the effect of better cost
escalation measures in our construction contracts contributed to a
170bps margin improvement during the second quarter alone.