Reference is made to the recent media speculations regarding the potential merger with Sahara which included information relating to the procedures, terms, structure and phases of the proposed merger, Saudi International Petrochemical Company (Sipchem) would like to confirm that it has not reached any agreement with Sahara with respect to these matters and that the negotiations with Sahara are still ongoing regarding the potential merger conditions and its structure including the valuation of the two companies which will determine the number of shares that the offeror company will issue to the shareholders of the offeree company if the merger is completed.

Sipchem also would like to confirm that it will duly announce any material developments regarding the potential merger in accordance with the relevant laws and regulations.