Reference to the board of directors annual report 2016 and L'azurde IPO prospectus published on CMA website on 31 May 2016, section 4.9 Future Plans and Initiatives, related to the establishment of a new production unit in Egypt, L'azurde is pleased to announce that the new production unit in Egypt has been successfully completed at a cost of SAR 12.6 million.

The new production unit will be fully operational by the end of February 2018. The project was funded through the Company own resources generated from operations.

This new production unit will be mainly dedicated to meeting the increasing export demand, taking advantage of the low manufacturing cost in Egypt, in addition to producing new lines for the local market.

The Financial impact is expected to appear in the company financial results starting the second quarter of the current year. However, it is difficult to be estimated now.