Press releases

Dear SODIC Client,
Egypt has been experiencing many changes over the past weeks and a lot of questions have been raised about individuals and companies. In the spirit of complete transparency, I am writing you today to address the questions being asked about SODIC's shareholding, land ownership, financial situation and the status of our projects.
Overall, I am happy to announce that SODIC's conservative approach has ensured that we enter into this turbulent period in a position of strength on all fronts and we are committed todelivering all our contracted units to our clients on schedule as well as maintaining all of our employees and legal/commercial obligations.
The following should provide you with some clarification:

Company Shareholding:
SODIC is, and has been since incorporation, a publicly listed company traded on the Egyptian Stock Exchange (Ticker OCDI.CA) and is owned by tens of thousands of local and international shareholders, of which international institutions and shareholders account for more than 50% of the company.
More specifically:

- No SODIC shares are held by any member of the Mubarak family.
- The Company's Non-Executive Chairman is Mr. Magdy Rasekh, who currently owns a nominal 649 shares representing 0.0017% of SODIC's outstanding shares.
- There has never been a single controlling shareholder at any time in the Company's history.
- We adhere to the strictest corporate governance policies and are in complete compliance with the disclosure and transparency rules of the Egyptian Stock Exchange Authority.

For more information we have a full list of all SODIC shareholders as of 27th January 2011 available for your inspection at our office.

SODIC Land:
We have conducted a full legal due diligence on our land which confirmed that all SODIC lands were acquired according to the applicable laws. More specifically:
- The Sheikh Zayed land (comprising 6.2 million sqm including the Beverly Hills, Allegria, Forty West, The Polygon developments) acquired in 1995 was compliant with Law No. 143 of 1981 and was paid for in full.
- The Allegria extension of 340,200 sqm was acquired through a government public auction in 2007 in compliance with the Procurement Law No. 89 of 1998.
- The two plots of land in Kattameya/New Cairo (totalling 983,000 sqm) were acquired in 2007 For more information we have a full list of all SODIC shareholders as of 27th January 2011 available for your inspection at our office. through the acquisition of a company, fully paid for in cash.
- The 6th of October plot of 300 acres was acquired in 2008 through purchase of a company. It is fully paid for, registered and has not yet been developed.

SODIC's Financial Position:
SODIC has a solid balance sheet and has sufficient funds to secure the employment of contractors, suppliers and thousands of direct and indirect employees. More specifically:
- We have liquidity in excess of EGP 700 million.
- We have over EGP 2 billion in receivables with EGP 800 million due in 2011.
- SODIC has only EGP 90 million in debt representing less than 3.4% of shareholder equity.
- The Board of Directors has approved a business plan for 2011 which will entail investments of EGP 1.2 billion to be funded through our cash reserves, collection of our existing receivables and a minor amount of pre-approved bank debt.

Construction and Delivery Schedule by Project:
The events of the past weeks have had minimal impact on construction causing a disruption of no more than 10 days. Today, I am happy to announce that we have aggressively resumed construction and we should be at 100% labour force capacity on all sites within the next two weeks. More specifically by project:

Allegria (Phases I, II, III & IV)
The Allegria master-plan for all four phases has been approved (Ministerial Decrees Number 14 dated 14-Jan-2008 and Number 374 dated 27-Aug-2009), and we are very proud of the tremendous progress achieved on site.

- The first 122 homes have already been delivered on schedule to our clients, the last one being as recent as the 3rd of March 2011. Another 221 units are targeted to be ready between now and June 2011. 400 additional units are scheduled for delivery by end 2011. Clients will be contacted by our Customer Services Team to confirm delivery procedures.
- Contracts for construction of phases III and IV have been awarded to Hassan Allam Construction and mobilisation on both sites is ongoing. It is noteworthy that all earthworks, terracing/retaining walls and trunk infrastructure have already been completed and so Phase III is on schedule for delivery to our clients as of May 2013 and Phase IV is on schedule for delivery to our clients as of January 2013.

We encourage all our clients to visit Allegria. The Allegria Greg Norman Signature Golf Courseis fully operational, in addition to its restaurant Tempo. If you wish to book a site visit please contact your Property Consultant on 16220.

The first 122 homes have already been delivered on schedule to our clients, the last one being as recent as the 3rd of March 2011. Another 221 units are targeted to be ready between now and June 2011. 400 additional units are scheduled for delivery by end 2011. Clients will be contacted by our Customer Services Team to confirm delivery procedures.

Forty West (Westown)
- Master-plan approved (Westown Master-Plan Ministerial Decree number 405 dated 23-Oct-2008) and all construction permits have been obtained.
- Hassan Allam Construction is mobilised on site and construction is well under way.
- The project is on track to being delivered to our clients as of May 2013.

The Polygon Westown Business Park (Westown)
- Master-plan approved (Westown Master-Plan Ministerial Decree number 405 dated 23-Oct-2008) and all construction permits have been obtained.
- Our contractor SIAC is mobilised on site and construction is well under way.
- The project is on track to being delivered to our clients as of March 2013.

Kattameya Plaza
- Master-plan approved (Ministerial Decree Number 403 dated 23-Oct-2008).
- Construction is ongoing for 33 of the 41 buildings as per schedule.
- The project is on track to being delivered to our clients as of December 2012.

Moving forward, we recognise that some clients may be facing cash flow pressures and as such we have devised some financial facilities which could help alleviate them. If you would like to find out more about these facilities, please contact either Shahira Hamouda from our Client Financial Services Team or Tamer Shendidy from our Client Services and Relations Team (Tel. 16220) by maximum the 21st April 2011.

We hope this letter reassures you that at SODIC we are fully committed to and capable of delivering all contracted units on time and to the highest of quality standards. Our pledge to delivering our projects on time, and adhering to our contractual obligations to you, our client, is part of our patriotic commitment to Egypt. By delivering your homes on schedule we are helping secure your tangible asset in addition to the employment of thousands of Egyptians and doing our part to stabilise the economy and returning it to the path of growth and prosperity.

Thank you for your support and continued confidence in SODIC. My team and I are at your disposal to meet with you in person if you require any further clarifications.