EL SEWEDY CABLES TO ESTABLISH RED SEA COPPER WITH GLENCORE INTERNATIONAL AG FOR THE POSSIBLE CONSTRUCTION OF A 300,000 TPA COPPER SMELTER/REFINERY IN EGYPT

Cairo, Egypt- June 26th, 2007: El Sewedy Cables announced today that it has obtained the approval to establish Red Sea Copper, a free zone company, for the development of a 300,000 ton per annum copper smelter/refinery to be located at Ain Sokhna, in Egypt. The shareholding of the new project is expected to be El Sewedy Cables 74% and Glencore International AG 26%.

As part of the vertical integration strategy of the group, EL Sewedy Cables signed an MOU with Glencore International AG on March 23rd, 2006 and conducted an initial feasibility study with Hatch. Following the positive outcome of the preliminary feasibility study, El Sewedy Cables and Glencore International AG appointed SNC Lavalin, a leading consultant in the Metals and Mining Industry, to perform the detailed feasibility study and basic engineering for the project, which is expected to be completed by early 2008. If approved by both El Sewedy Cables and Glencore International AG, construction of the project is expected to be completed within 30 months.

The investment cost for the project is expected to be in the region of US$ 850 million. El Sewedy Cables has acquired a 1.7 million square meter plot of land close to the Sokhna port, designated for the project. The output of the project is expected to be 300,000 tons of copper cathodes to be sold through long-term off-take agreements between Red Sea Copper and El Sewedy Cables and Glencore International AG. Glencore International AG is also expected to provide 1 million tons of copper concentrates to Red Sea Copper through a long-term supply agreement.

Ahmed El Sewedy, CEO of El Sewedy Cables commented “We believe that this project, if approved, would add tremendous value to the overall group and fits in perfectly with our strategy of being a fully vertically integrated producer of power cables and electrical products. In addition, partnering with Glencore International AG, one of the world’s largest suppliers of a wide range of commodities and raw materials to industrial consumers, adds tremendous value to the overall success of this project. Based on the outcome of the preliminary feasibility study, the project in Egypt would be amongst one of the lowest operating cost smelters in the world. In addition, the location of the project, which would be adjacent to the Ain Sokhna port, provides excellent access for both imports and exports in addition to access to high quality road transport links.”

HSBC has been appointed to act as Financial Adviser and Linklaters and Helmy Hamza appointed as legal counsel for the project.

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