SAVOLA SELLS AL MADINAH LAND TO KEC CO. FOR SAR 631.3 MILLION

Further to the Savola Group (Savola) two announcements published on 27/12/2011 in the Saudi Stock Exchange (Tadawul) regarding the signing of a contract to sell its stakes in the lands adjacent to Knowledge Economic City Company (KEC or the buyer) project in Al-Madinah Al-Munauwarah City, Savola would like to announce that it has completed on Sunday November 10th, 2013 the sale of its entire 80% stake in the above mentioned lands with a total area of 2,026,245 (two millions, twenty six thousands and two hundreds forty five) square meters for a transaction value of SAR 631.3 million. Pursuant to the contract, KEC paid down payment of SAR 16.3 million to Savola upon signing the contract. Upon completion of the transaction, Savola received the remaining amount of SAR 615 million by cheque, as per the mechanism agreed between the two parties.

As a result of this transaction, Savola realized a net capital gain of SAR 231.4 million, which will be reflected in the financial statements of Savola for the 4th Quarter of 2013.

Dr. Abdulraouf M. Mannaa, Savola Group CEO & Managing Director emphasized that completion of the above transaction is affirming Savola strategy of focusing on its growing core sectors and steadily disposing of its non-core investments.

The proceeds from this transaction will be used to finance the operations and expansion projects of the Savola Group.