Riyadh, December 30, 2007: The Saudi Arabian Fertilizer Company (SAFCO) board of directors, at its meeting on December 29, decided to recommend to the Extraordinary General Assembly an increase in the company’s capital from SAR 2 billion to SAR 2.5 billion by granting one bonus share for every four shares.



The board also recommended the distribution of SAR 400 million dividends to the shareholders for the second half of the current year, at SAR 2 per share. This will bring the total dividends proposed for distribution to shareholders for 2007 to SAR 1 billion, which is equal to SAR 5 per share of which SAR 3 were distributed for the first half of the year.



Announcing this, Mohamed Al-Mady, SAFCO Chairman and Managing Director, pointed out that those eligible for the granted shares and cash dividends will be the shareholders registered with Tadawul at the time of closing of trading on the day of the General Assembly and Extraordinary General Assembly meeting scheduled to be held at the end of the first quarter 2008.



Al-Mady said that during the meeting the board of directors also reviewed the company's performance in 2007. He hailed the record daily and monthly production of the company and its performance in industrial, environmental safety and quality.



Al-Mady thanked the board of directors, the company's executive management and employees for their continued efforts, calling on all to increase their efforts to achieve greater targets.