RIYADH, 20 November 2007 — As part of common expansion strategies, Erne Fittings GmbH, Austria and Al-Rajhi Investment Group (ARIG) have signed an agreement to establish a joint company in Jubail Industrial City, Saudi Arabia, in which the former will provide the complete range of approved butt-welding fittings for the power generation, process, and oil and gas industries at competitive prices, a company statement said yesterday.

Erne Fittings Middle East Co. Ltd. in Dubai is already in operation.

With all operations in place, this joint venture will also represent the first butt-welding fittings factory in the Middle East set up with a significant capacity of several thousand tons per year. The construction is scheduled to start in the second half of this year and be completed by early 2008, it said, adding that “till all the operations were established in its full range, Erne Fittings GmbH will continue to safeguard all services.”

“For the opportunities in the region, we are pleased to set up this cooperation with such a prominent Saudi partner”, said Ernst Bitsche, president of Erne Fitings. “In the past, we served our customers in the Middle East via our European structures. By having the proper infrastructure, most advanced equipment, the right network and personnel within an arms reach of our customers we’ll be able to provide a much closer partnership than in the past. Given our worldwide track record in delivering quality and technical competence as a major manufacturer and supplier of fittings for all industries, we anticipate that Erne Fittings Middle East will become a major contributor for the markets benefit,” he added.

“In this plant, we still use state-of-the-art technology to provide our customers the best quality with short delivery periods at very competitive process. The plant will work to cover Saudi market and export to other countries in the Middle East and Asia”, said Faisal Al-Rajhi of Al-Rajhi Investment Group.