Imposition of a penalty

The Capital Market Authority announces the issuance of a CMA Board resolution to impose a penalty of SR 50,000 ( Fifty Thousand Saudi Riyals) on Saudi Cement Company due to it’s violation of clause (A) of Article (9) of the Corporate Governance Regulations. The Board of Directors’ report ,attached with the annual financial statements for the fiscal year 2011, did not include what has been applied from the Corporate Governance Regulations and the provisions that were not applied and the reasons behind that.