PRESS RELEASES

Apr 10, 2009

OYAK CEMENT GROUP 2008 RESULTS - 2009 EXPECTATIONS

We have concluded a difficult 2008 under the hard global conditions and at the end of the first three months of 2009, we are in your presence, in a term where we can see the future a little clearer.

The financial crisis that reflected its effects in Turkey as of the second half of 2008 has also deeply effected the construction sector that had been the leading sector for many years and the gross domestic product could only increase by 1.1% during the year whereas the construction sector materialised 7.6 % deterioration. Naturally, the cement sector got its share out of this deterioration and we witnessed 4.4 % regression during 2008 in our domestic sales.

As OYAK Cement Group we have concluded 2008 with 5.8 million tons of domestic and 2.4 million tons of export sales; while our domestic sales were decreased by 4 % our export sales have been increased by 50 %. As a pioneer in the export sales to Russia and Middle East, we had been the first to enter the markets that gradually grew throughout the year and we were the group who sold the most; as a result we brought into our country almost 300 million TL export revenue. Around the year 2008, Adana, Bolu, Ünye and Mardin Cement attained 874 million TL net sales revenue, 256 million TL main operating profit and 281 million TL net profits.

We could observe the approach of the stagnation in and before 2008. We took the necessary measures with our 50 years of experience in the cement sector and did get involved with the unnecessary investments. We did not value any asset over its worth, we did not follow the general trend and did not purchase anything with great loans, we were cautious. Today, with the same attitude we can sleep in peace. Not only the cement companies of Turkey but also the gigantic cement companies of the world met the crisis with great loans. Whereas we, with 250 million TL cash, almost own 50 % of the total cash of the 15 companies quoted in the stock exchange, we are paying our shareholders their dividends as generous as any other year; we do not ever risk our companies and shareholders.

In Turkey, the present capacity of clinker is 58 million tons and cement is 94 million tons.  As OYAK Cement Group we have drawn the attention to the overcapacity and always made our plans accordingly; we had stated that the new line we made at Mardin Cement would only produce for export and we prove have proven this fact with the footnotes of our financial statements. The white cement and slag cement facilities we have very recently completed at Adana and the ongoing slag cement facility construction in Bolu Cement are universally special product producing facilities; neither the parts of excess supply nor of excess capacity. We put the Ünye Cement Romanian Facility into service in February to serve the growing Romanian and Bulgarian markets. As a result, we grew up; but within a plan, with caution, an organic growth and with the cash in hand. For example, Adana Cement had invested a total of 78 million TL in 2008 and at the end of the year; the cash in hand was 91 million TL excluding the investment, without any debts. As a conclusion, with these decisions we have been one of the financially healthiest groups in the world.

Besides, we as Bolu Cement have experienced a patent pride at the end of 2008. This patent, a first among the OYAK Group Companies as well as the cement sector, has been reached with the creativity and dedicated efforts of the Bolu Cement personnel. We heartily support the R&D activities in our Companies and believe to attain similar successes in the coming years.