PC BOARD RECOMMENDS HIGHEST OFFER OF RS.16.415 BILLION FOR NATIONAL REFINERY LIMITED

Islamabad, May 31, 2005

The Privatisation Commission ("PC") Board in its meeting held under the chairmanship of Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment after the bidding of National Refinery Limited ("NRL" or the "Company") here today, recommended the highest offer of Rs.16. 415 billion for approval of Cabinet Committee on Privatisation (CCOP).

The bidding was held in the presence of the representatives of the print and electronic media for the sale of 51% (33,985,788 shares) equity stake in National Refinery Limited ("NRL" or the "Company"), together with management control, to a qualified strategic investor on an 'as is, where is' basis under the Chairmanship of Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment today afternoon at Islamabad.

Three pre-qualified bidders 1. Attock Oil Group, 2. Crescent Steel and Allied Products and Shakarganj Mills Limited and 3. Fauji Foundation Consortium became eligible for bidding after depositing   Rs.300 million each as earnest money within the stipulated period.

The authorized representatives of the bidders dropped their sealed bids in the transparent bid box, which were opened and read out by the senior journalists. Attock Oil Group stood highest with an offer of Rs.483/- per share with a total bid offer of Rs.16. 415 billion, Crescent Steel and Allied Products and Shakarganj Mills Limited remained second with Rs.260/- per share offer with a total bid of Rs.8. 836 billion and the offer given by Fauji Foundation Consortium was the lowest i.e Rs.197/- per share making a total of Rs.6. 695 billion bid offer.

Addressing on this occasion Dr. Hafeez Shaikh said that NRL was an important transaction, which would further improve its operation, quality and production after its handing over to the private sector. Since, the highest offer received for NRL was above than the reference price approved by the CCOP, therefore, there was no need for holding another round for the open bidding, he disclosed. Privatisation Commission engaged Citigroup Global Markets Limited of UK in April last year to provide financial advisory services for the privatisation of the National Refinery Limited.

PC received 29 EOI for NRL while 16 parties submitted RSOQs. Among them 11 parties were pre-qualified for conducting due diligence in the data room. Six parties participated in the pre-bid conference while three parties  finally decided to participate in the bidding round. The process for the privatisation of NRL was initiated on October 23, 2004.

Later, talking to the media representatives, the Minister said that the PC Board would send its recommendations to CCOP, which was expected to meet after the return of the Prime Minister's tour from abroad. Replying to a  question the Minister said that the subscription for initial public offering of United Bank Limited shares would open on June 3 and it would conclude on June 8, 2005 to give maximum time to the applicants to complete the related  formalities. Responding to another question the Minister stated that the bidding for PTCL would be held on time.

Later, addressing PC Board meeting Dr. Hafeez Shaikh said that after the bidding for NRL the total proceeds would stand at Rs.104 billion against the transaction conducted during the past 30 months, which was historic record and could not be achieved during the past 13 years on the privatisation front. He appreciated the hard work done by PC and other concerned stakeholders for holding the bidding of NRL in a most transparent manner.