The Company

An Egyptian Joint Stock Company

Balance Sheet as at 31 December 2008

In Egyptian Pound Note 31 December 2008 31 December 2007

No.

Long-term Assets
Property, plant and equipment (net) (3-2,4) 258 673 748 84 359 993
Projects under construction (3-3,5) 14 720 446 146 894 108
Deferred tax assets (net) (3-15,7) 2 142 640 3 437 730
Retirement benefits fund (net) (3-14,6) 4 313 055 459 854
Total Long-term Assets 279 849 889 235 151 685

Current Assets
Inventory (net) (3-4,8) 413 671 571 338 398 024
Trade and other receivables (net) (3-5, 9) 735 709 380 653 248 494
Cash at banks (3-6, 10) 483 967 365 597 072 267
Total Current Assets 1 633 348 316 1 588 718 785

Current Liabilities
Banks facilities ( 3-10 11 ) 1 749 523 1 192 587
Trade payables and other credit balances ( 3-11 12 ) 1 237 540 641 1 136 883 296
Provisions ( 3-12 13 ) 87 035 145 48 237 641
Total Current Liabilities 1 326 325 309 1 186 313 524
Working Capital 307 023 007 402 405 261
Total Investments 586 872 896 637 556 946

These investments are financed as follows:

Equity

Issued and paid in share capital ( 3-8 15 ) 219 826 320 219 826 320
Legal reserve (16 ) 43 965 264 27 728 162
Retained earnings 60 377 60 377
Net profit for the year 323 020 935 389 942 087
Total Equity 586 872 896 637 556 946

* The accompanying notes from page ( 8 ) to ( 29 ) form part of these financial statements.

Chief Financial officer Chairman

& Board member & Managing Director

*Auditor's report attached.

4
the Company.
An Egyptian Joint Stock Company
Income statement for the Financial Year Ended 31 December 2008

Note 2008 2007

In Egyptian Pound No.

Continuing operations

Net sales (3-13,18) 3 386 747 492 2 243 413 167

Cost of sales (19) (2 886 527 378) (1 760 789 552)
Gross Profit 500 220 114 482 623 615

Other operating income 70 315 896 43 835 295

Selling and distribution expenses (20) ( 41 539 141) ( 13 474 990)
Administrative and general expenses (21) ( 33 142 473) ( 42 322 891)
Provisions formed (3-12,13) ( 17 806 940) ( 14 618 509)
Provisions no longer required (3-12,13) - 757 985
Impairment loss on property, plant and equipment (3-7,4) (2 155 364) -
Impairment loss on inventory (3 055 889) ( 6 614 797)
Reversal of impairment loss on inventory 1 276 595 1 256 877
Impairment loss on trade and other receivables ( 562 500) -
Reversal of impairment loss on trade and other receivables 1 137 500 4 475 000
Capital gain 2 200 555 566 761
Other operating expenses ( 16 907 951) ( 22 176 000)
Results from operating activities 459 980 402 434 308 346

Interest income 33 836 796 30 432 241

Financing expenses (25 848 904) ( 14 234 455)
Foreign exchange differences ( 92 062 141) ( 22 050 931)
Net financing expenses ( 84 074 249) ( 5 853 145)
Profit before income tax 375 906 153 428 455 201

Income Tax :
Current Income tax (3-15/C) ( 51 590 128) ( 39 870 566)
Deferred tax (3-15/C) ( 1 295 090) 1 357 452
( 52 885 218) ( 38 513 114)
Profit from continuing operations 323 020 935 389 942 087
Net Profit for the year 323 020 935 389 942 087
Basic earnings per share ( LE/Share) (23) 1 234 1 490

* The accompanying notes from page ( 8 ) to ( 29 ) form part of these financial statements.

5
The Company
#REF!
Statement of Changes in Equity for the Financial Year Ended 31 December 2008

In Egyptian Pound Share Legal Retained Net profit Total

Capital Reserve Earnings for the year

Balances as at 31 December 2006 219 826 320 10 525 290 60 377 344 057 442 574 469 429

Transfer to legal reserve - 17 202 872 - ( 17 202 872) -

Dividends paid for 2006 - - - ( 326 854 570) ( 326 854 570)
Net profit for the year 2007 - - - 389 942 087 389 942 087
Balances as at 31 December 2007 219 826 320 27 728 162 60 377 389 942 087 637 556 946

Transfer to legal reserve - 16 237 102 - ( 16 237 102) -

Dividends paid for 2007 - - - ( 373 704 985) ( 373 704 985)
Net profit for the year 2008 - - - 323 020 935 323 020 935
Balances as at 31 December 2008 219 826 320 43 965 264 60 377 323 020 935 586 872 896

* The accompanying notes from page ( 8 ) to ( 29 ) form part of these financial statements.

6
The Company .
An Egyptian Joint Stock Company
Notes to the Financial Statement for the Financial Year Ended 31 December 2008

4- Property, plant and equipment

Installations Machinery Furniture &

Land Buildings Vehicles Total
### & fixtures & equipment office equipment

Cost
At 1/1/2008 4 233 944 1 768 821 22 226 111 118 359 538 22 289 532 10 572 476 179 450 422

Additions - - 22 987 279 177 688 071 14 730 477 1 721 668 217 127 495

Disposals - - - ( 12 578 374) ( 5 738 357) ( 443 627) ( 18 760 358)

Balance at 31/12/2008 4 233 944 1 768 821 45 213 390 283 469 235 31 281 652 11 850 517 377 817 559

Depreciation & Impairment losses

At 1/1/2008 - 1 768 821 11 130 351 68 604 533 6 623 443 6 963 281 95 090 429

Depreciation expense - - 1 372 857 28 933 228 5 826 474 1 170 355 37 302 914

Impairment losses - - - - 2 155 364 - 2 155 364

Accumulated depreciation of disposals - - - ( 12 578 374) ( 2 382 895) ( 443 627) ( 15 404 896)
Balance at 31/12/2008 - 1 768 821 12 503 208 84 959 387 12 222 386 7 690 009 119 143 811

Net book value

At 31/12/2008 4 233 944 - 32 710 182 198 509 848 19 059 266 4 160 508 258 673 748
At 31/12/2007 4 233 944 - 11 095 760 49 755 005 15 666 089 3 609 195 84 359 993

A- Impairment losses on property, plant and equipment

In 2008, due to the existence of some indications of impairment in items in property, plant and equipment (Vehicles), the company's management has reviewed
the recoverable amounts of those Vehicles comparing to their carrying amounts, which has resulted in an impairment losses amounting to L.E 2 155 364 charged to
the income statement.

16