Zamil Steel invests in India

Notes and media contacts

About Zamil Industrial Investment Company
Zamil Industrial Investment Company (ZIIC) was founded in 1998. It is headquartered in Dammam, Kingdom of Saudi Arabia, and employs more than 5,500 people in 50 countries. As an international manufacturing and fabrication group, it provides leading air conditioning, pre-engineered steel buildings, structural steel products, process equipment, transmission and telecommunications towers, open web joists and decks, and architectural glass processing solutions to meet the requirements of the global construction industry through its three sector businesses: Zamil Air Conditioners (www.zamilac.com), Zamil Steel Industries (www.zamilsteel.com) and Zamil Glass Industries (www.zamilglass.com).

For the year ended 31 December 2004, ZIIC posted turnover of SAR 1.97 billion/USD 525 million, a growth of 26% over 2003. Post Zakat earnings per share also grew by 40% to SAR 10/USD 2.67, up from SAR 7.17/USD 1.91 during the same period in 2003. Shareholders' equity grew by 13.2% to SAR 494.9 million/USD 132 million. Export sales accounted for SAR 889.9 million/USD 237.3 million representing a 62.5% growth over 2003. ZIIC exports to more than 75 international markets and derives 45% of its revenues from outside Saudi Arabia.

Total turnover during the first nine months of 2005 was SAR 1.83 billion/USD 489.2 million, an increase of SAR 375 million/USD 100 million over the same period in 2004. Shareholders' equity increased by 18.7% to SAR 570.7 million/USD 152.2 million compared to the same period in 2004. Net profits after Zakat contributions grew by 48% to SAR 88 million/USD 23.5 million over the equivalent period in 2004. Post Zakat earnings per share grew to SAR 12.6/USD 3.4. Exports during the first nine months of 2005 were at SAR 726.1 million/USD 194 million.

ZIIC shares are actively traded on the Saudi Stock Market. More information can be found at www.ziic.com.

About Zamil Steel Industries (www.zamilsteel.com)
Founded in 1977, Zamil Steel (ZS) is a global leader in the manufacture of pre-engineered steel buildings and the Middle East's premier supplier of structural steel products and process equipment, transmission and telecommunications towers. Zamil steel operates a joint venture between Zamil Industrial Investment Company and Steel Plus, a subsidiary of Canam Manac Group, Canada, to design and fabricate open web steel joists and floor decks.

ZS manufactures a total 250,000 MT of fabricated steel per annum of low rise and high rise steel buildings and structures for diverse industrial, commercial, agriculture, aviation, entertainment and military applications and support of infrastructure and development projects. Zamil Steel's products are sold in more than 80 countries through an international network of dedicated sales and representative offices, certified builders, agents and distributors.

Zamil Steel's main factories are based in Dammam, Saudi Arabia. Additional factories are located in Egypt and Vietnam. More than 500 engineers are employed in its engineering departments in Saudi Arabia, Jordan, Egypt, Vietnam and India.

ZSI is one of three sector businesses of Zamil Industrial Investment Company.

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For more information on this press release, contact Said Al-Daajani, Zamil Industrial Investment Company, Corporate Communications, Tel: (966) 3 8471840, Fax: (966) 3 8472574, or e-mail: saidaldaajani@ziic.com

Issued on behalf of Zamil Industrial Investment Company by Hill & Knowlton. For more information contact Sami Amin on Tel: +973 17 533532, Fax: +973 17 533370