Ezz Steel launches global offering

Ezz Steel's ordinary shares are listed on the Cairo and Alexandria Stock Exchanges ("CASE") and its GDRs are listed on the London Stock Exchange. Ezz Steel's market capitalisation was approximately US$1.73 billion, based on the closing price of its shares as quoted by the CASE on 1 February 2007.

· The global offering will comprise an offering by Ezz Steel of its newly issued ordinary shares in the form of shares and GDRs.

· In addition, Al Ezz Group Holding for Industry and Investment S.A.E. (the "Selling Shareholder") has granted the Joint Global Coordinators an over-allotment option to purchase existing ordinary shares and/ or GDRs representing up to 15% of the total number of shares (including GDRs) in the global offering.

· It is envisaged that the global offering will be made to qualified investors in the European Union, qualified institutional buyers in the United States under Rule 144A, qualified institutional buyers or professional high net worth individuals in Egypt, and institutional investors outside the EU, the US, and Egypt, including investors in the Middle East, subject to applicable restrictions.

· Ezz Steel is currently approximately 76.93%-owned by the Selling Shareholder. The Selling Shareholder will continue to own a majority of the share capital of Ezz Steel after the global offering.

· Ezz Steel intends to use its net proceeds from the global offering on capital expenditures, principally to build an additional electric arc furnace to expand flat steel production and to build an additional DRI facility to further increase its vertical integration.

· Citigroup and EFG Hermes are Joint Global Coordinators and Joint Bookrunners for the global offering and HSBC is acting as Co-Lead Manager.

· Ezz Steel has today published a notice to convene an extraordinary shareholders' meeting for the purpose of approving the proposed global offering.

Commenting on the announcement, Ahmed Ezz, Chairman and Managing Director of Ezz Steel, said:

"This announcement is an historic step for Ezz Steel, which has grown to become the MENA region's largest independent steel producer. The additional liquidity this offering will bring will give us a great platform to further develop our business, enhance the efficiency of our production, increase our volumes and the value we can add."