EL SEWEDY CABLES TO ESTABLISH A TRANSFORMERS PLANT IN ZAMBIA

El Sewedy Cables invests in a Greenfield operation for the production of distribution transformers

Cairo, Egypt- April 23rd, 2007: As part of its strategy to expand production facilities in the Middle East and Africa, El Sewedy Cables announced today that it will establish a plant in Zambia for the production of distribution transformers up to 5 Mega Volt Ampere (MVA”).

With a total investment cost of US$ 8.4 million. El Sewedy Cables will own 60%, whilst Zesco Ltd (the Zambia Electricity Authority). Zambia State Insurance Corporation, Zambia Consolidated Copper Mines and the National Pensions Authority will own 40 % of the new venture.

The new plant in Zambia will cover a surface of 5,000 square meters and will have an initial production capacity of I ,200 transformers per annum. The plant is expected to employ about 89
Egyptian and Zambian employees and is expected to increase our production capacity in the
Middle East and Africa to reach 4,700 transformers.

Operations are expected to commence by mid-2008 and the plant will enjoy a five year tax exemption from the start of production.

Engineer Ahmed El Sewedy commented This is the first transfhrrners plant in the area and the consortium itself is very strong. Having our partner as the main customer is a huge advantage for us. This project is blessed with the backing of the Zambian president and government who have been extremely supportive in making this project a reality for us.”

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