Announcement by Taiba Holding about the reduction of the capital of Al-Aqeeq Real Estate Development Company – a subsidiary of Taiba Holding –

Further to the previous publication on Tadawul website dated 06/07/2011, Taiba Holding announced the reduction of the capital of Al-Aqeeq Holding Company – a subsidiary of Taibah Holding – which owns 89.899% of its capital. His influence on Taiba Holdings, the good would like to clarify to all of the following: The cancellation of the number of 105.404,000 shares of Al-Aqeeq Company at a value equivalent to SR 1.054.040.000 – where the nominal value of each share is SR 10 – means the reduction of the capital of the agate at the value equivalent to the number of canceled shares. (144) of the Companies Law. As for the effects of this, there is no negative impact on Taibah Holding as a result of the reduction of the capital of Al-Aqeeq Company, as the percentage of good ownership in Al-Aqiq capital of 89.899% will continue As is, and the amount of reduction in the capital of the agate is the cancellation of the amount To increase the value of the good and glorious buildings in the books of agate to equal with their value recorded in the books of Taiba Holding, which continued to record their historical value in their books, while they recorded their market value in the books of agate when they converted from Taibah Holding to the company in the third quarter of 2007, and the following table shows the accounts and amounts related to the subject of reducing the capital of the agate and its impact on the books of both Taiba Holding and Al-Aqiq: (Click on image to view it in normal size) The table shows that the capital of the agate will be reduced by the same amount as the reduction in the value of the Tiba and Majid buildings in the books of the agate to the same value as in the books of Taiba Holding. This will result in cancellation of unrecorded revenues recorded in Taiba Holding The contribution of Taiba Holding in the capital of Al-Aqeeq is SR 947,571,420, which represents the share of Taibah Holding from the total amount of Al-Aqiq capital reduction of SR 1.054,040,000, equivalent to a good contribution percentage in Al-Aqiq capital of 89.899%. The shareholders of Agate the share The other shareholders of the 10.101% reduction amounting to SR 106,468,580 will be added to the shareholders ‘equity at Taiba Holding, which will reflect positively on the shareholders’ equity of Taiba Holding as a result. We note that previous accounting treatments were necessary and consistent with all accounting standards as there are other partners with Taiba in Al-Aqeeq Company when the ownership of the two buildings was transferred from Taibah to Al-Aqeeq. The registration of the Taiba and Majdi buildings with their market value in the agate books was based on Estimates approved in accordance with the accepted rules and acceptance of other partners in the agate of that value as previously announced on 06/02/2007 and 26/06/2007 and dated 18/07/2007, and the agate and within the verification procedures carried out for the purpose of submitting to the competent authorities To increase its capital through the issuance of shares Which was announced on 26/12/2009 and dated 03/02/2010 and dated 19/04/2011 has re-evaluated the buildings of Taiba and Majidi in 2010 by three major companies specialized in real estate valuation, namely DZZ and Colliers International Company and the Saudi Company for Valuation and Valuation of Assets (TUMIN). The average price of TIBA and Majdi buildings amounted to SR 2.665 million, which is 45% higher than the value recorded in Agate books on that date. The rise in the assets of the company, and the recent treatment came to reduce the capital of Al-Aqeeq company Reducing the value of the buildings mentioned so as to cancel the differences in value between the two centers mentioned Taiba Holding and garnet, which has become a barrier to launch a new garnet company shares in the IPO books.