Group

Orascom Cement is an emerging markets cement leader, with number-one positions in the key markets of Egypt, Algeria, United Arabs Emirates and Iraq. The company also has strategic positions in other growth markets in the region (Saudi Arabia, Syria and Turkey) and is located in several high-potential markets in Africa and Asia (South Africa, Nigeria, Pakistan and North Korea).

Orascom Cement's key figures are:

• a wealth of talented human resources, with a unique experience in developing cement activities in emerging markets,

• 10 new or recent facilities with cement capacity of 35 million tons in 2008 increasing to 45 million tons in 2010,
• projected annual sales growth of 30% and annual E.B.I.T.D.A. growth of 33% (2007-2010),
• operating margin of over 40% in 2008 thanks to very low production costs,
• projected sales of $2.6 billion and E.B.I.T.D.A. of $1.3 billion in 2008,

• superior cash flow generation with Free cash flow over $1 billion in 2008.

Orascom Cement provides Lafarge with unparalleled exposure to the Middle East and Mediterranean Basin, a region with exceptional growth potential driven by buoyant oil and natural gas revenues, strong economic and demographic growth, rapid urbanization and immense infrastructure needs.

Through Orascom Cement, Lafarge will penetrate these fast growing and very profitable markets, with high potential. Orascom Cement's geographical presence is highly complementary with Lafarge's current emerging markets portfolio and is located at the center of our geographical presence. Lafarge takes the lead in emerging markets, through its presence in all of the world's fastest-growing regions.

With this acquisition and Lafarge's current construction program of 45 million tons, the Group will add a total of 90 million tons of production capacity located mainly in emerging markets.

This operation marks a decisive step in the Group's cement strategy, accelerates growth, creates the best performing player in the sector, enriches our pool of talents and opens new possibilities for future development.