EGYPTIAN PETROCHEMICALS HOLDING CO. MINISTRY OF PETROLEUM EGYPTIAN PETROCHEMICALS HOLDING CO. EGYPT – PLACING ITSELF AT THE FOREFRONT OF THE GLOBAL PETROCHEMICAL INDUSTRY

( ECHEM ) Was Established January, 2002 WHY ECHEM ? * Implement The Petrochemical Master Plan * Promote The Plan To Local And International Investors * Assist & Support Investors To Plan, Construct, And Operate Their Projects; Financially, Technically, And Commercially * To Continuously Review And Update The Plan To Be Inline With Changes In Local And International Markets * Managing & Supervising The Existing Petrochemicals Companies

TO BE A MAJOR MANUFACTURER AND MARKETER OF PETROCHEMICAL PRODUCTS VISION TO BE A MAJOR MANUFACTURER AND MARKETER OF PETROCHEMICAL PRODUCTS MISSION TO DEVELOP COMPETITIVE PETROCHEMICALS INDUSTRY BASED ON LOCAL HUMAN AND NATURAL RESOURCES USING STATE - OF - THE - ART TECHNOLOGY

PETROCHEMICALS MASTER PLAN * Comprises ( 24 ) World Scale Projects Including ( 3 ) Olefin Complexes * Requires ( 10 $ US Billion ) To Realize During ( 20 Years ) * Produce ( 15 Million Tons ) Of Products, Worth ( 7 $ US Billion / year ) * Displace Imports ( 3 $ US Billion / Year ) And Generate Export Sales ( 4 $ US Billion / Year ) * Create Over 100,000 Jobs ( Direct / Indirect )

PETROLEUM SECTOR ORGANIZATION MINISTRY OF PETROLEUM Egyptian General Petroleum Corporation ( E G P C ) Egyptian Natural Gas Holding Company ( EGAS ) Egyptian Petrochemicals Holding Company ( ECHEM ) South Valley Petroleum Holding Company ( GANOPE )

PETROCHEMICALS MASTER PLAN THE MASTER PLAN ( US $ 10 Billion Over 20 Years ) PHASE ( I ) 2002 / 2008 PHASE ( II ) 2009 / 2015 PHASE ( III ) 2016 / 2022

The Master Plan - Phase, I ( 2002 / 2008 ) SELECTED PHASE ( I ) PROJECTS ( US $ 3.1 Billion ) LINEAR ALKYL BENZENE 80 M T/A 250 MM $ PROPYLENE & POLY - PROPYLEN 400 M T/A 430 MM $ ETHYLENE & POLY - ETHYLENE 1 MM T/A 1,600 MM $ STYRENE & POLY - 300 M T/A 350 MM $ METHANOL& AMMONIA 1 MM T/A 600 MM $

THE MASTER PLAN ( PHASE - I ) In Addition, There Will Be Some Smaller Related Projects In Response To Market Demand : Phase ( I ) : Acrylic Fibres ( 36 K T / A ) PVC - Expansion ( 80 K T / A ) Polyester ( 250 K T / A )

WHY EGYPT ? STABILITY NATURAL RESOURCES HUMAN RESOURCES AVAILABILITY PROXIMITY TO EUROPE, ASIA & AFRICA LARGE LOCAL MARKET INVESTMENT INCENTIVES

PROPOSED SITES Total Land Area = 26.55 MM m2 El - Beheirah Idku Site Cairo El - Beheirah Idku Site 3.11 MM m2 Kafr El - Sheikh Motobas Site 4.87 MM m2 El - Dakahliah Gamasah Site 8.40 MM m2 Damietta El-Rehab / Dibah 3.17 MM m2 Ismailiah Kantarah East 0.70 MM m2 Total Land Area = 26.55 MM m2 Suez North West Gulf Of Suez 6.30 MM m2

PETROCHEMICAL MASTER PLAN FIRST PHASE PETROCHEMICAL MASTER PLAN 1. Methanol / Ammonia Complex US$ 560 Million Gamasah 2. Poly Styrene US$ 150 Million Suez 3. Ethylene / Poly Ethylene US$ 1.50 Billion Damietta 4. Polyester US$ 200 Million Alexandria 5. Propylene /Poly Propylene US$ 450 Million P. Said / Dam. 6. PVC Expansion US$ 250 Million 7. Linear Alkyl Benzene US$ 230 Million 8. Acrylic Fibres US$ 75 Million

EXECUTIVE SUMMARY 8 Major Projects in phase 1 with total investment of US$ 3.3 Billion Prefeasibility studies completed for all projects US$ 2.2 Million were made available for bankable feasibility studies Bankable feasibility studies completed for 5 projects ( LAB, Propylene, Polystyrene, Polyester & Acrylic ) Two registered Companies ( LAB & Acrylic Fibres ) Investment Authority approval for four projects ( Propylene, Methanol, Ammonia, & Polyester)

EXECUTIVE SUMMARY ( Continued ) Four Companies will be registered by the end of June 2004 ( Methanol, Ammonia, Polypropylene & Polyester ) Long off-take MOU’s or agreements for all production of 7 projects ( LAB, Methanol, Ammonia, Polystyrene, Polypropylene, Polyester & Acrylic Fibres ) Strategic investors available for 8 projects ( Methanol, Ammonia, Polystyrene, Polyethylene, Polyester, Polypropylene, LAB & Acrylic Fibres )

METHANOL / AMMONIA COMPLEX 1,000,000 Ton / Year Methanol ( Steam Reforming ) 1.1 Billion Nm3 / Year ( 80 % Hydrogen ) Total Investment : US $ 360.0 Million IRR : 18.7 % NPV : US $ 90.8 Million Pay Back Period : 5.3 Years 400,000 Ton / Year Ammonia Total Investment : US $ 200.0 Million IRR : 18.8 % NPV : US $ 49.3 Million Pay Back Period : 5.3 Years Location for both : Gamasah

METHANOL / AMMONIA COMPLEX Status : Prefeasibility Study - Complete Funding For Bankable Study - Confirmed Three Methanol Off-take MOU - Signed MOU With Ammonia Strategic Investor - Signed Investors Interest For Methanol Received From: 70% Indorama 75% Methanex 10% APICORP 30% NPC (Iran) 5% CIB Mitsui Mitsubishi

METHANOL / AMMONIA COMPLEX Status ( Continued ) : ECHEM 20% Approval by Investment Authority for two companies is completed. The Egyptian Company for Methanol Production “ E - Methanol ” The Egyptian Company for Ammonia Production “ E - Ammonia ”

METHANOL / AMMONIA COMPLEX Schedule: Complete Company Registration : End of June, 2004 ( 2 Companies ) Complete Bankable Feasibility study : September, 2004 Start of Basic Engineering : October, 2004 EPC Contracts : February, 2005

POLY - STYRENE COMPLEX 200,000 Tons / Year Poly - Styrene ( Based on Importing 200,000 Tons / Year of Styrene Monomer by Strategic Investor ) Total Investment : US $ 150.0 Million IRR : 20.5 % NPV : US $ 130.0 Million Pay Back Period : 5.0 Years Location : Gulf Of Suez

POLY - STYRENE COMPLEX Status: Bankable Study - Complete Off - take MOU - Signed Strategic Investors will provide Styrene & lift Poly - Styrene Investors Confirmed Interest NPC “Iran” 75 % PIC “Kuwait” 75 % Technicas Reunidas 10 - 15 % ECHEM 10 %

POLY - STYRENE COMPLEX Schedule: MOC With Strategic Investor June 15, 2004 Approval By Investment Authorities June 15, 2004 Feed Stock Agreement End June, 2004 Company Registration July, 2004 Basic Engineering October, 2004

ETHYLENE / POLYETHYLENE COMPLEX 750,000 Tons / Year Ethylene & Polyethylene Total Investment : US $ 1,5 Billion IRR : 18 % NPV : US $ 670.4 Million Pay Back Period 5.6 Years Location : Damietta

ETHYLENE / POLYETHYLENE COMPLEX Status Three Potential Strategic Investors Pre - Feasibility Study Complete Feed Stock Availability Study progressing ( 90 % ) Cooperate with EGAS to Conduct Ethane Network Bankable Feasibility Study Product Off take By Strategic Investor JVA Draft Complete Feed Stock Agreement Draft Complete Financial Strategy Progressing

ETHYLENE / POLYETHYLENE COMPLEX Schedule Complete Feed Stock Availability Study End 2004 Complete Bankable Feasibility Study Mid 2005 Complete Financial Strategy End 2004 Sign JVA with Strategic Investor January, 2005

POLYESTER COMPLEX 300,000 Tons / Year Polyester based on Importing : 102,000 Ton / year of MEG 258,000 Ton / year of PTA Total Investment : US $ 200.0 Million IRR : 15 - 16 % NPV : US $ 60 Million Pay Back Period : 6.0 Years Location Alexandria

POLYESTER COMPLEX Status: Prefeasibility Study Complete Feed Stock By Strategic Investor Product Offtake By Strategic Investor MOU with Strategic Investor Signed Approval by Investment Authorities Complete

POLYESTER COMPLEX Schedule: Bankable Feasibility Study End May, 2004 J. V. A. Agreement Mid June, 2004 Company Registration End June, 2004 Feed Stock Agreement End July, 2004 Product Offtake Agreement End July, 2004 Project Finance End, 2004

PVC EXPANSION PROJECT Phase 1: Increase of PVC Production from 60,000 T /A to 120,000 T / A Total Investment : US $ 50.0 Million Phase 2: Add New PVC Line ( New Company ) 80,000 T/ A Total Investment : US $ 200.0 Million IRR : 19 % N P V : US $ 58.0 Million Pay Back Period : 5.2 Years Location : EPC site at Amereyah, Alexandria

PVC EXPANSION PROJECT Status : Pre feasibility Study Completed Application for funding bankable study Agreement in principle with EDC supplier Off Take M.O.U. for 60,000 T/A PVC

PVC EXPANSION PROJECT Schedule : Complete Off Take Agreement June, 2004 Complete Bankable feasibility Oct, 2004 Complete Funding for Expansion July, 2004 Complete EDC Supply Agreement July, 2004 Investor for New PVC Line Nov, 2004

POLYPROPYLENE Complex 350,000 Tons / Year Polypropylene Total Investment US $ 450 Million IRR 18 % NPV US $ 208 Million Pay Back Period 5.8 years Location Port Said or Damietta

POLYPROPYLENE Complex Status Bankable Feasibility Study is complete Feedstock Agreement with UGDC agreed in Principle Product Off take M.O.U. was signed with 2 Off takers M.O.C. was signed with Oriental Group Steering Committee was formed Finance Strategy Agreed is 35 % Equity & 65 % Debt Investment Authority Approval was obtained

POLYPROPYLENE Complex Schedule Technology Evaluation Mid June, 2004 Company Registration End June, 2004 ITB for EPC End June, 2004

ACRYLIC FIBERS COMPLEX 16,000 Tons / Year Acrylic Fibres Total Investment US $ 75.0 Million Location Alexandria

ACRYLIC FIBRES COMPLEX Status: Company Formed & Project In Progress Technology Agreement Signed Basic Engineering 35 % Progress Detail Engineering 15 % Progress

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