SUCCESSFUL BIDDER DEPOSITS BID AMOUNT OF RS.80.715 MILLION FOR KOHINOOR OIL MILLS 60.41 % SHARES-SALE AGREEMENT SIGNING ON SATURDAY

Islamabad, July 23, 2004

The successful bidder of Kohi Noor Oil Mills (KOML) has deposited the bid amount of Rs. 80. 715 million within the stipulated timeframe. A sale agreement signing ceremony will be held on July 24, 2004 (Saturday) at 1245 hrs in the Conference Hall of Privatisation Commission. Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment will chair the ceremony. The highest offer was received in an open bidding held under the auspices of Privatisation Commission on May 4, 2004. Five parties who deposited earnest money participated in the open bidding for the privatisation of Kohinoor Oil Mills Limited (KOML) through the sale of upto 60.41 % shares (3,16,530 shares) on 'as is where is' basis. The representatives of the print and the electronic media also witnessed the proceedings.

The bidding started from the floor price of Rs.140/= per share (which was not the reference price) with a minimum increase of Rs.5/= or its multiple to raise the bids. The Government offered the sale of 60.41 % (3,16,530) shares of KOML while remaining shares are with other private individuals and the institutions.

Five parties who became eligible for participating in the bidding after submitting earnest money included Petrosin Engineering Pvt Ltd, Islamabad, Canal Associates, Lahore, Mr. Iqbal Khan of Bara Ghee Mills, Bara, Kohinoor Sugar Group, Lahore, Kohisar Enterprises, Karachi. Mr. Iqbal Khan was declared highest bidder who offered Rs. 255/- per share i.e. Rs. 80. 715 million for the offered shares. Kohinoor Sugar Group Lahore remained second with an offer of Rs. 215/= per share (Rs.79. 132 million) while Kohisar Enterprises, Karachi gave a bid of Rs.215/- per share (Rs. 68. 054) and stood third. The highest offer received for Khoinoor Oil Mills shares was above the reference price.

The successful bidder has already expressed his determination to revive the unit, which had been closed since 1997. The revival of the Unit would not only generate economic activity but it would also provide employment opportunities to the people of the area.