JEDDAH, 21 May 2008 — Savola Group announced yesterday the launch of a new edible oils and sugar company with Al-Muhaidab Group. The new company, to be called Savola Foods, will be owned 80 percent by Savola and the rest by Al-Muhaidib.

Announcement to this effect was made at a meeting at the Jeddah Hilton yesterday. As part of the deal, Savola will take full control of Savola Industrial Investments Co, a second joint venture between the two companies in which Muhaidab has a 36.5 percent stake, Managing Director Sami Baroom said in the statement.

Savola said on Monday it planned to spend at least $100 million to buy stakes in agribusiness firms in Ukraine, Brazil or Egypt to secure sugar and edible oil supply.