The Capital Market Authority announces the issuance of a CMA Board resolution numbered (5-31-2011) and dated 18/11/1432H corresponding to 16/10/2011 to impose a penalty of SR 50.000 ( Fifty Thousand Saudi Riyals) Saudi Vitrified Clay Pipes Co. due to its violation of sub-clause (17) of clause (B) of Article (27) of the Listing Rules.

The Board of Directors’ report, attached with the annual financial statements of the company for the fiscal year 2010, failed to include the disclosures in paragraph (17) referred to above.