Paints and Chemical Industries Company Pachin S.A.E. The Consolidated Financial Statements and Limited Review Report For the Financial Period from

Paints and Chemical Industries Company Pachin S.A.E. The Consolidated Financial Statements and Limited Review Report For the Financial Period from July 1, 2010 until March 31, 2011

LIMITED REVIEW REPORT To: The Board of Directors of Paints and Chemical Industries Company "Pachin" Introduction We have reviewed the accompanying consolidated balance sheet of Paints and Chemical Industries Company for the period from July 1, 2010 until March 31, 2011, and the related statements of consolidated income, cash flows and changes in equity for the nine month period ending on that date, and the summary of significant accounting polices and the disclosure thereto. These financial statements are the responsibility of the company s management. Our responsibility is to issue a report on these financial statements based on our review.scope of Limited Review We conducted our review in accordance with the Egyptian Standard No. (2410), applicable to the review engagements. This standard requires that we plan and perform the review to obtain moderate assurance that the financial statements are free of material misstatement. A review is limited primarily to inquire of the company s personal and analytical procedure applied to the financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements as of March 31, 2011, do not give a true and fair view of the company s financial position and the results of its operations and cash flows for the nine month period ending on that date according to the Egyptian Accounting Standards. Cairo, May 3, 2011 Kamel M. Saleh ACA F.E.S.A.A (RAA 8510)

Paints and Chemical Industries Company "Pachin" S.A.E. Consolidated Balance Sheet As of March 31, 2011 Notes 31/03/2011 30/6/2010 31/03/2011 30/6/2010 Consolidated Pachin Non - Current Assets EGP EGP EGP EGP Property, plant and equipment (net) (2b, 4) 272 123 782 272 669 159 14 935 599 15 709 182 Projects under construction (2c, 5) 11 875 183 16 677 932 1 612 086 788 223 Other Non - Current Assets Investment in subsidiaries (2f, 6) Available for sale investments (2f, 7) Other long-term assets (2d, 8) -- -- 249 880 000 254 361 507 774 906 774 906 774 906 774 906 16 016 000 16 016 000 16 016 000 16 016 000 Total Non - Current Assets 300 789 871 306 137 997 283 218 591 287 649 818 Non current assets held for sale (2r, 10) 487 809 487 809 487 809 487 809 Current Assets Inventories (net) (2g, 9, 17b) Letters of credit Debtors and Accounts Receivable Accounts receivable (net) (2h, 11, 17b) Notes receivable (net) (12, 17b) Due from subsidiaries (13) Other debit accounts (14) Investments for trading purposes (2i, 15) Cash and cash equivalents (2j, 16) 239 603 300 202 891 844 63 498 089 50 212 623 5 392 896 3 714 278 1 654 561 95 694 30 730 888 29 097 185 11 271 343 15 029 486 12 493 286 13 681 922 14 240 5 921 -- -- 37 256 355 32 304 518 64 979 888 58 590 036 47 288 441 129 369 087 77 530 568 109 699 810 12 663 364 37 610 930 35 492 705 31 982 376 6 398 735 9 216 198 Total Current Assets 466 223 531 449 657 451 180 045 128 273 844 457 Current Liabilities Provisions (2K, 17 a) 40 961 648 39 343 869 35 340 765 35 340 765

- 2 - Banks' overdraft Accounts and notes payable (2L, 18) Due to El-Obour for Paints (19) Other credit accounts (20) -- 16 685 -- 6 343 77 285 275 54 139 539 9 804 056 9 720 945 -- -- 4 756 998 3 428 464 44 841 809 49 885 907 12 856 361 16 694 583 Total Current Liabilities 163 088 732 143 386 000 62 758 180 65 191 100 Working Capital 303 134 799 306 271 451 117 286 948 208 653 357 Total Investment financed by : 604 412 479 612 897 257 400 993 348 496 790 984 Shareholders Equity Issued and paid-up capital (21) Reserves (22) Foreign currency translation profit (losses) Retained earnings Profits for the period / year 200 000 000 200 000 000 200 000 000 200 000 000 217 596 869 210 046 208 178 608 813 178 608 813 188 106 ( 116 922) -- -- 65 116 680 30 279 307 16 671 948 25 438 810 109 017 536 154 663 296 4 686 945 92 033 138 Total Shareholders Equity 591 919 191 594 871 889 399 967 706 496 080 761 Minority interest Total Sharholders Equity and Minority Interest Long-term liabilities (23) 680 463 4 818 581 -- -- 592 599 654 599 690 470 399 967 706 496 080 761 1 113 315 1 113 315 -- -- Deferred tax (2Q, 24) 10 699 510 12 093 472 1 025 642 710 223 Total Financing of Working Capital and Long-Term Assets 604 412 479 612 897 257 400 993 348 496 790 984 - The accompanying notes from (1) to (29), form an integral part of the financial statements. Chief Financial Officer Manager Director Chairman Accountant: Ashraf Moustafa El Kahky Eng.: Mohy Eldeen Abdelrazik Dr.: Hoda Ahmed Salah Eldeen - Auditor's Report attached.

- 3 - Paints and Chemical Industries Company "Pachin" S.A.E. Consolidated Income Statement From July 1, 2010 until March 31, 2011 Period from 1/1/2011 to 31/3/2011 Period from 1/7/2010 to 31/3/2011 Period from 1/1/2010 to 31/3/2010 Period from 1/7/2009 to 31/3/2010 Period from 1/1/2011 to 31/3/2011 Period from 1/7/2010 to 31/3/2011 Period from 1/1/2010 to 31/3/2010 Period from 1/7/2009 to 31/3/2010 Consolidated Pachin Sales (net) (2N, 3) Less: Cost of sales Notes EGP EGP EGP EGP EGP EGP EGP EGP 143 994 245 512 276 330 150 251 768 509 750 372 23 777 482 82 891 067 (118 769 986) (395 712 025) (113 686 447) (382 434 827) (23 740 073) (76 172 797) 26 692 654 93 322 212 (22 379 070) (83 796 212) Gross Profit 25 224 259 116 564 305 36 565 321 127 315 545 37 409 6 718 270 4 313 584 9 526 000 General and administrative expenses (4 317 705) (13 281 075) (4 302 454) (13 683 148) (1 754 220) (5 739 063) (1 529 013) (5 215 657) (2 000 000) (2 000 000) (3 750 000) (3 750 000) Provisions -- -- -- -- (9 622 662) (9 622 663) Impairment (29) -- -- -- -- -- -- (4 481 507) (4 481 507) Impairment in investments in subsidiary -- -- -- -- -- -- Allowance for attending the Board of Directors ( 120 200) ( 405 629) ( 127 800) ( 323 800) ( 40 000) ( 120 000) ( 50 000) ( 152 500) Profit (losses) from Operations Interest expenses 9 163 692 91 254 938 28 385 067 109 558 597 (6 238 318) (3 622 300) 2 734 571 4 157 843 ( 119 048) ( 120 522) (1 303 095) (4 144 981) ( 31 520) ( 32 948) ( 2 283) ( 6 531) Revenue from investements in subsidiary -- -- -- -- Profit on sale of investments Gain on revaluation of investments held for trading 1 232 129 1 238 909 148 367 148 367 -- 17 063 -- -- 13 561 20 341 -- -- ( 609 069) 752 662 652 437 2 728 561 194 915 752 662 98 706 220 678

- 4 - Treasury bills revenue 1 058 306 5 626 016 -- -- 177 573 1 976 596 -- -- Investment income -- -- 1 138 343 3 267 957 -- -- 864 146 1 404 503 Interest income 358 253 1 523 450 499 158 2 197 970 95 238 395 097 168 373 601 557 Capital gain -- 5 550 386 895 458 067 -- 5 550 386 895 458 067 Other income 322 233 8 109 461 -- 1 472 859 470 762 8 076 615 228 955 1 830 024 Currency evaluation differences ( 480 970) ( 806 626) 13 224 384 026 ( 40 170) ( 117 797) 26 906 ( 48 686) Profit before discontinued operation losses 10 925 526 107 583 838 29 920 396 116 071 423 (5 357 959) 7 470 879 4 506 269 8 617 455 Discontinued operation losses (25) ( 197 350) ( 666 981) ( 477 365) (1 167 014) ( 197 350) ( 666 981) ( 477 365) (1 167 014) Profit before Tax and Minority Interest 10 728 176 106 916 857 29 443 031 114 904 409 (5 555 309) 6 803 898 4 028 904 7 450 441 Current tax ( 240 334) (3 367 032) ( 439 460) ( 439 460) -- (1 801 534) -- -- Deferred tax (2Q, 24) 222 730 1 393 962 ( 503 418) ( 503 418) ( 289 791) ( 315 419) ( 55 862) ( 55 862) Profit after Tax and before minority interest 10 710 572 104 943 787 28 500 153 113 961 531 (5 845 100) 4 686 945 3 973 042 7 394 579 Minority interest 4 800 458 4 073 749 ( 6 246) 125 230 -- -- -- -- Profit after Tax and Minority Interest 15 511 030 109 017 536 28 493 907 114 086 761 (5 845 100) 4 686 945 3 973 042 7 394 579 - The accompanying notes from (1) to (29), form an integral part of the financial statements. Chief Financial Officer Managing Director Chairman Accountant: Ashraf Moustafa El Kahky Eng.: Mohy Eldeen Abdelrazik Dr.: Hoda Ahmed Salah Eldeen

- 5 - Paint and Chemical Industires Company "Pachin" S.A.E. Consolidated Cash Flows Statement From July 1, 2010 until March 31, 2011 Note 31/3/2011 31/3/2010 31/3/2011 31/3/2010 Consolidated Pachin EGP EGP EGP EGP Cash Flows from Operating Activities Net Profit before tax and minority interest 106 916 857 114 904 409 6 803 898 7 450 441 Adjusted by Depreciation of fixed assets 11 374 153 10 381 399 1 141 054 1 332 837 Net provisions formed and used 1 526 914 3 750 000 -- -- Capital gain ( 5 550) ( 458 067) ( 5 550) ( 458 067) Impairment 9 622 663 -- -- -- Impairment in investments in subsidiary -- -- 4 481 507 -- Gain on revaluation of investments for trading purposes ( 752 662) (2 728 561) ( 752 662) ( 220 678) Profit on the sale of investments (1 238 909) ( 148 367) ( 20 341) -- Operating Profit before Working Capital Changes 127 443 466 125 700 813 11 647 906 8 104 533 (Increase) in receivables and other debit balances (6 829 648) (11 862 735) 80 878 633 81 189 315 (Increase) decrease in inventories and letters of credit (42 592 052) (40 356 425) (14 844 333) 15 480 161 Increase (decrease) in creditors and other credit balances 14 530 519 25 294 522 (4 232 242) (8 237 913) Net Cash Provided from Operating Activities 92 552 285 98 776 175 73 449 964 96 536 096

- 6 - Cash Flows from Investing Activities Purchase of investments for trading purposes (311 627 202) (6 910 121) (72 233 141) (29 362 844) Purchase of investments in subsidiary companies -- -- -- (1 115 019) Proceeds from the sale of investments for trading purposes 345 788 015 -- 97 953 710 -- Purchase of fixed assets and other non-current assets (11 361 118) (19 547 620) (1 191 335) ( 337 852) Proceeds from the sale of fixed assets 5 550 1 597 645 5 550 1 597 645 Net Cash Provided from (used in) Investing Activities 22 805 245 (24 860 096) 24 534 784 (29 218 070) Cash Flows from Financing Activities Payments of banks overdraft and long term loans ( 16 685) (52 636 387) ( 6 343) ( 50 164) Dividends paid (111 830 516) (83 832 766) (100 795 868) (78 459 523) Net Cash (used in) Financing Activities (111 847 201) (136 469 153) (100 802 211) (78 509 687) Net change in cash and cash equivalents during the period 3 510 329 (62 553 074) (2 817 463) (11 191 661) Net cash and cash equivalents at beginning of the period (2j,16) 31 982 376 96 150 631 9 216 198 17 262 738 Net cash and cash equivalents at end of the period (2j,16) 35 492 705 33 597 557 6 398 735 6 071 077 - The accompanying notes from (1) to (29), form an integral part of the financial statements. Chief Financial Officer Managing Director Chairman Accountant: Ashraf Moustafa El Kahky Eng.: Mohy Eldeen Abdelrazik Dr.: Hoda Ahmed Salah Eldeen

- 7 - Paints and Chemical Industries Company "Pachin" S.A.E. Consolidated Statement of Changes in Equity From July 1, 2010 until March 31, 2011 Capital Reserves Foreign Currency Translation Losses Retained Profits for the Earnings Year / period Minority Interest Total EGP EGP EGP EGP EGP EGP EGP Balance as of June 30, 2009 Minority interest for Pachin for Paints - Libya Transferred to reserves Foreign currency translation losses Dividends for shareholders, employees, and Board of Directors Net profits as of June 30, 2010 Balance as of June 30, 2010 Transferred to retained earnings Transferred to reserves Foreign currency translation revenue Dividends for shareholders, employees, and Board of Directors Net profits as of March 31, 2011 200 000 000 201 754 501 -- 31 262 524 91 041 360 2 324 314 526 382 699 -- -- -- -- -- 2 195 019 2 195 019 -- 8 291 707 -- -- (8 291 707) -- -- -- -- ( 116 922) -- -- -- ( 116 922) -- -- -- ( 983 217) (82 749 653) ( 76 907) (83 809 777) -- -- -- -- 154 663 296 376 155 155 039 451 200 000 000 210 046 208 ( 116 922) 30 279 307 154 663 296 4 818 581 599 690 470 -- -- -- 34 837 373 (34 609 611) ( 227 762) -- -- 7 550 661 -- -- (7 550 661) -- -- -- -- 305 028 -- -- -- 305 028 -- -- -- -- (112 503 024) 163 393 (112 339 631) -- -- -- -- 109 017 536 (4 073 749) 104 943 787

- 8 - Balance as of March 31, 2011 Balance as of March 31, 2010 200 000 000 217 596 869 188 106 65 116 680 109 017 536 680 463 592 599 654 200 000 000 210 046 208 ( 128 672) 30 279 305 114 086 761 4 317 197 558 600 799 - The accompanying notes from (1) to (29), form an integral part of the financial statements. Chief Financial Officer Managing Director Chairman Accountant: Ashraf Moustafa El Kahky Eng.: Mohy Eldeen Abdelrazik Dr.: Hoda Ahmed Salah Eldeen

- 9 - Paints and Chemical Industries Company Pachin (S.A.E.) Notes to the Consolidated Financial Statements As of March 31, 2011 1. The Group s Background Paints and Chemical Industries Company Pachin The company was established according to the Ministerial Decree No. 751 for 1958. On October 3, 1997, the Extraordinary General Assembly agreed to circulate 27% of its share via GDR offer in the Stock Markets of London and New York accordingly, the Holding Company s share was reduced to less than 50 %, and the company became subject to the Companies Law No. 159 for 1981 and its executive regulation. The Commercial Register was issued after this modification on October 15, 1997. On October 31, 2000, the Extraordinary General Assembly agreed to amend some articles in the Articles of Incorporation. The company s objective is to manufacture various kinds of paints, varnishes, printing inks, animal extract products and related products, in addition to purchasing and dividing land for the purpose of using or reselling, and performing specialized construction works. El-Obour for Paints and Chemicals Industries Company Pachin The company was established according to the General Authority for Investment and Free Zones Decree No. 78 for 1999, and the provisions of Investment Guarantee and Incentives Law No. 8 for 1997. The company was registered at the Commercial Register on January 14, 1999. On September 19, 2006, the Extraordinary General Assembly agreed to amend Article No. (2) of the company s Articles of Incorporation by adding the trademark Pachin to the company s name. Therefore, the company s name became El-Obour for Paints and Chemical Industries Company Pachin. The company s objective is to manufacture various kinds of paints, varnishes, printing inks, animal extract products and related products and also, to manufacture other chemical products and special packages for the company s products. Pachin for Inks The company was established according to the General Authority for Investment and Free Zones Decree No. 13623 for 2005, and Law No. 8 for 1997 and its executive regulation. The company was registered at the Commercial Register on April 27, 2005. The company s objective is to manufacture and pack printing inks and related products and to manufacture other chemical products and special packages for the company s products.

- 10 - Pachin for Paints and Chemical Industries Company The company was established pursuant to a contract certified by the General Committee of Justice at the Arab Republic of Libya and according to the provisions of Law No. (5) for 1997 concerning investment of foreign capital and its executive regulation and amendments, and the decree of the General Committee s Treasurer No. 86 for 2006 concerning amending the executive regulation provisions for Law No. 5 for 1997. The company s objective is to: - Establish and operate a factory for manufacturing paintings and supplementary products with its various types, and other chemical materials and its packaging. - Import various materials required for the project from abroad in the form of tools or equipments or in the form of spare parts, or the material required for operation such as the primary production material. - Sell the project s products locally and abroad. - Bring labor and foreign technical expertise required for the project. - Open bank accounts locally and abroad and its management and the right to obtain loans and facilities. - Transfer the profits. - Own property and deliverables required for the activity. 2. Significant Accounting Policies The consolidated financial statements have been prepared according to the Egyptian Accounting Standards and applicable laws and regulations. The Egyptian Accounting Standards require referral to the International Financial Reporting Standards IFRS, when no Egyptian Accounting Standard or legal requirement exist to address certain types of transactions and their treatment. The principal accounting policies adopted in the preparation of the financial statements are set out below: a. Basis for Preparing the Consolidated Financial Statements The consolidated financial statements incorporate the financial statements of the subsidiary companies under the control of the Holding Company (Paints and Chemical Industries Company Pachin (SAE). The subsidiaries are represented in El-Obour for Paints and Chemical Industries Company where the Holding Company's share is 99.95%, and Pachin for Inks where the Holding Company's share is 99.96%, and Pachin for Paints and Chemical Industries Company where the Holding Company's share is 50%. The consolidated financial statements are prepared on the following basis: All inter-company transactions and balances are eliminated. The unrealized profits resulting from the inter-company transactions are eliminated.

- 11 - The cost method is used to account for the ownership in subsidiaries. The consolidated income statement includes the results of operation for all subsidiary companies starting from the date of ownership, and the minority interest is eliminated. b. Property, Plant and Equipment Property, plant and equipment are recorded at historical cost and are depreciated over their estimated useful life on a straight-line basis at the rates stated below: Type of Asset Depreciation Rate Buildings and constructions 2 5 % Machinery and equipments 4.9 7.5 % Vehicles 10 20 % Tools 7.5 % Furniture and office equipments 10 % The machinery and equipments item included a coloring machine depreciated over 3 to 5 years then granted to the dealers according to the contracts concluded with them. c. Projects under Construction Projects under construction are carried at cost, less any recognized impairment loss. Costs include all costs associated with acquiring the asset and bringing it to ready for use condition. The depreciation of these assets follows the same basis of similar fixed assets. The projects under construction are charged with the costs of new projects, and the purchased equipments that are not used yet. The amounts paid as advances for purchasing property, plant and equipment are recorded as projects under construction. When the asset is received and is ready for use, it is transferred to fixed asset and is depreciated on the same basis as similar fixed assets. d. Other Long-Term Assets The other long-term assets (Patent) are recognized according to acquisition cost. On the balance sheet date, the book value of assets is reviewed and in the case that there are indications that the recoverable amount of these assets is lower than its book value, then the carrying value of assets will be reduced to its recoverable amount, and the impairment loss is recognized immediately and charged to the income statement.

- 12 - e. Impairment of Assets On the balance sheet date, the book value of assets owned by the company is reviewed (except for inventory), and in the case that there are indications that the recoverable amount of these assets is lower than its book value, then the carrying value of assets will be reduced to its recoverable amount, and an impairment loss is recognized immediately and charged to the income statement. On the balance sheet date, the company s management (periodically) revaluates, the existence of indications of impairment in the losses value, which were previously recognized resulting from the impairment of the assets book value in the previous periods. In case of existence of these indications, this impairment is revaluated and reflected so that the book value of these assets does not exceed the original net book value before recording the impairment loss. f. Investments in Subsidiaries and Available for Sale Investments - Investments in subsidiary companies and long-term investments are stated at cost. The company assesses whether there is any indication that the value of each investment is impaired. If such indication exists, the value of the related investment is reduced by the impairment loss and this loss is charged to the income statement, for each investment separately. - The available for sale financial investments, with no reliable fair value, are recognized according to all its related costs, less the impairment losses of its value. These losses are charged to the income statement. g. Inventories Inventories are stated at the lower of cost or net realizable value as follows: Raw Materials, Packaging, Spare Parts and Fuel Cost is calculated using the weighted average method. Work in-progress The cost includes direct and indirect manufacturing costs of partially completed stages in addition to the material, direct wages costs of the completed production stage. Goods Available for Sale Goods available for sale are stated at cost. Finished Goods Finished goods are stated at manufacturing cost.

- 13 - h. Accounts Receivable Accounts receivable are carried at nominal value as reduced by appropriate Impairment for estimated irrecoverable amounts. Impairment for accounts receivable are formed when there is evidence that the company will not be able to recover the amounts due according to the original terms of receivables. The provision represents the difference between the book value and the recoverable as stated in the expected cash flows. i. Investments for Trading: Investments certificates which are issued by banks are stated at fair value, representing its recoverable value as of evaluation date. The resulting differences are stated in the income statement, while the investment certificates are evaluated at their nominal value. j. Cash and Cash Equivalents Cash and bank balances are stated at nominal value. k. Provisions Provisions are recognized when the company has a present obligation (legal or constructive) as a result of past events and that it is probable that an outflow of economic resources will be required to settle the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date. When the effect of the time value of money is material, the amount of a provision shall be the present value of expected expenditures, required to settle the obligation. l. Accounts Payable Accounts payable are stated with the total goods and service received from others. m. Foreign Currencies Transactions The company maintains its accounts in Egyptian pound. Transactions denominated in foreign currencies are recorded using the exchange rates prevailing at the transaction date. On the financial statements date, balances of monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate prevailing on that date. Differences arising from revaluation are stated in the income statement. n. Revenue Recognition - Revenue is recognized on an accrual basis upon delivery of goods to customers and the issuance of the sales invoice. - Interest income is recognized on an accrual basis. o. Borrowing Cost Borrowing cost is recorded in the income statement in the period it was incurred as financing expenses.

- 14 - p. Cash Flows Statement The cash flows statement is prepared using the indirect method. For the purpose of preparing the cash flows statement, cash and cash equivalents are comprised of cash on hand and at banks and checks under collection. q. Taxation The company s tax is calculated based on the prevailing tax laws and regulations in Egypt; a provision is formed for tax liabilities after performing sufficient studies and in light of the tax assessments. Deferred tax is recognized on the temporary differences between the assets and liabilities tax bases set by the new Egyptian tax law, and their reported amounts per the accounting principles used in the preparation of the financial statements. Accordingly, the income statement for the reporting period is to be charged by the tax burden represented by the current tax (calculated on taxable profit based on local tax laws, regulations, instructions and tax rates ruling at the financial statements date), as well as the deferred tax. Generally, the recognized deferred tax liabilities on taxable temporary differences are reported as long-term liabilities, whereas deferred tax assets reported as long-term assets shall not be recognized for deductible temporary differences except to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized or there is convincing evidence that sufficient taxable profit will be available in the future. r. Non-Current Held for Sale Assets Non-current assets (or the assets to be disposed) are stated as held for sale if its book value is expected to be recovered on the basis of sale transaction and not on the basis of its use. These assets stated as held for sale are measured at the least of the book value or the fair value less sale costs. The impairment losses are stated at the income statement upon the initial recognition of the held for sale assets. s. Financial Instruments A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity instrument of another enterprise. Financial assets and liabilities are recognized on the company s balance sheet when the company becomes a party to the contractual rights and obligations of the financial instrument. Financial Assets: (are represented in cash on hand and at banks, accounts and notes receivable, and other debit accounts). Financial Liabilities: (are represented in banks overdraft, accounts and notes payable and other credit accounts).

- 15 - t. Accounting Estimates The preparation of financial statements in conformity with the Egyptian Accounting Standards requires the company s management to make estimates and assumptions about the carrying amounts of assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates used in the preparation of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. 3. Sales Analysis Consolidated Pachin Quantity (Ton) Amount 000 EGP Quantity (Ton) Amount 000 EGP Paints 54 967 479 542 6 622 82 891 Inks 1 487 32 734 -- -- Net sales from continuing operations 512 276 82 891 Sales from discontinuing operation (Animal extract product) 3 3 3 3 Total Sales 512 279 82 894

4. Fixed assets Consolidated Items Lands Buildings and construction Machinery and Equipments Vehicles Tools Furniture and Office Equipments Total Cost EGP EGP EGP EGP EGP EGP EGP As of July 1, 2010 40 618 767 156 325 021 136 985 309 19 339 237 17 511 557 16 276 623 387 056 514 Additions -- 10 166 263 2 067 658 1 859 268 251 613 893 148 15 237 950 Disposals -- -- ( 94 853) ( 74 900) ( 4 765) ( 3 902) ( 178 420) Cost as of March 31, 2011 40 618 767 166 491 284 138 958 114 21 123 605 17 758 405 17 165 869 402 116 044 Accumulated Depreciation As of July 1, 2010 -- (26 829 459) (55 590 838) (13 141 716) (8 447 730) (10 377 612) (114 387 355) Depreciation charge -- (3 082 082) (5 211 595) (1 422 679) ( 866 480) ( 791 317) (11 374 153) Disposals -- -- 94 853 74 900 4 765 3 902 178 420 Impairment for assets of Pachin Libya * -- (3 546 461) ( 541 579) ( 181 069) ( 66 303) ( 73 762) (4 409 174) Acc Depreciation as of March 31, 2011 -- (33 458 002) (61 249 159) (14 670 564) (9 375 748) (11 238 789) (129 992 262) March 31, 2011 @ NBV June 30, 2010 @ NBV 40 618 767 133 033 282 77 708 955 6 453 041 8 382 657 5 927 080 272 123 782 40 618 767 129 495 562 81 394 471 6 197 521 9 063 827 5 899 011 272 669 159 * Refer to note (29)

- 8 - Pachin Items Lands Buildings and construction Machinery and Equipments Vehicles Tools Furniture and Office Equipments Total EGP EGP EGP EGP EGP EGP EGP Cost As of July 1, 2010 158 817 19 659 818 26 559 173 5 984 473 4 049 954 6 653 769 63 066 004 Additions -- -- 92 354 229 343 9 912 35 862 367 471 Disposals -- -- ( 94 853) ( 74 900) ( 4 765) ( 3 902) ( 178 420) Cost as of March 31, 2011 158 817 19 659 818 26 556 674 6 138 916 4 055 101 6 685 729 63 255 055 Accumulated Depreciation As of July 1, 2010 -- (10 940 496) (22 571 154) (5 140 561) (3 240 699) (5 463 912) (47 356 822) Depreciation charge -- ( 356 482) ( 406 298) ( 139 047) ( 88 972) ( 150 255) (1 141 054) Disposals -- -- 94 853 74 900 4 765 3 902 178 420 Acc Depreciation as of March 31, 2011 -- (11 296 978) (22 882 599) (5 204 708) (3 324 906) (5 610 265) (48 319 456) March 31, 2011 @ NBV June 30, 2010 @ NBV 158 817 8 362 840 3 674 075 934 208 730 195 1 075 464 14 935 599 158 817 8 719 322 3 988 019 843 912 809 255 1 189 857 15 709 182 The cost for fully depreciated assets which are still used amounted to EGP 11.5 million, and the cost for fully depreciated assets and which are not used amounted to EGP 4.9 million.

- 8-5. Projects under Construction Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Machinery and equipments 4 908 009 5 187 467 1 335 465 740 581 Buildings 226 332 7 586 214 -- -- Tools and equipments 25 754 31 034 -- -- Software and programs 1 416 086 1 416 086 44 500 44 500 6 576 181 14 220 801 1 379 965 785 081 Advances for purchasing fixed assets 6 224 919 2 457 131 232 121 3 142 Impairment in projects under construction * (925 917) -- -- -- 6. Investment in Subsidiaries Stand alone Company Name Obour for Paints and Chemical Industries Issued Capital 11 875 183 16 677 932 1 612 086 788 223 Currency Ownership % Ownership Amount Paid % 31/3/2011 Paid Amount EGP 30/6/2010 Paid Amount 200 000 000 EGP 99. 95% 199 900 000 100% 199 900 000 199 900 000 Pachin for Inks 50 000 000 EGP 99. 96% 49 980 000 100% 49 980 000 49 980 000 Pachin Libya for Paints and Chemical Industries Less:- 2 000 000 LYD 50 % 1 000 000 100% 4 481 507 4 481 507 Impairment in investments in subsidiary (4 481 507) -- EGP 249 880 000 254 361 507

- 9-7. Available for Sale Investments Consolidated Pachin 31/3/2011 EGP 30/6/2010 EGP 31/3/2011 EGP 30/6/2010 EGP Governmental bonds at the National Investment Bank 774 906 774 906 774 906 774 906 8. Other Long-Term Assets Other long-term assets as of March 31, 2011 amounting to EGP 16 016 000, and equivalent to Euro 2 200 000, represent the amounts paid to the Danish Company Deroup A/S for the final cession of the trademarks according to the contract dated December 4, 2006, taking into consideration that there is no indication of impairment in this balance.

- 10-9. Inventories Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Raw materials and packaging 188 880 431 162 805 558 50 293 259 38 398 412 Less: Provision for scrap materials (1 438 623) (1 500 000) ( 900 000) (900 000) 187 441 808 161 305 558 49 393 259 37 498 412 Finished products 41 398 629 28 917 006 10 184 386 8 192 283 Less: Provision for finished goods ( 798 649) ( 798 649) (798 649) (798 649) 40 599 980 28 118 357 9 385 737 7 393 634 Fuel and spare parts 8 436 392 7 848 031 3 424 606 3 715 456 Less: Provision for spare parts ( 481 533) (481 533) (481 533) (481 533) 7 954 859 7 366 498 2 943 073 3 233 923 Work in-progress 6 787 367 5 527 290 1 605 541 1 605 541 Inventories for sale purpose 145 481 145 481 145 481 145 481 Scrap 28 958 428 660 24 998 335 632 Impairment in inventory * (3 355 153) -- -- -- * Refer to Note No. (29) 239 603 300 202 891 844 63 498 089 50 212 623

- 11-10. Assets Held for Sale 31/3/2011 30/6/2010 EGP EGP Factory at old Cairo 487 809 487 809 The company s management decided to dispose of some assets that were not used in the main company s operations. Therefore, the company started the sale procedures for the assets intended for disposal. The evaluation of these assets was finalized however, due to the current economic situation, the sale procedures were not finalized yet. These assets are represented by the animal coal factory at old Cairo with an area of 3 794 m 2, including an area of 267 m 2 which is seized by hand. On January 4, 2011, the company performed an auction and sold some of these assets with net book value amounting to EGP 27 053, and management will reconcile this transaction in April 2011, to be removed from the books. 11. Accounts Receivable (net) Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Accounts receivable 43 651 788 41 798 085 19 492 243 23 030 386 Less: Impairment (12 920 900) (12 700 900) (8 220 900) (8 000 900) 30 730 888 29 097 185 11 271 343 15 029 486 12. Notes Receivable (Net) Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Notes receivable 14 481 798 15 919 922 232 240 443 921 Less: Impairment (1 988 512) (2 238 000) (218 000) (438 000) 12 493 286 13 681 922 14 240 5 921

- 12-13. Due from Subsidiary Stand-alone Financial Statements Pachin 31/3/2011 30/6/2010 Pachin for Inks 37 092 255 32 029 018 Pachin Company - Libya 164 100 275 500 14. Other Debit Accounts EGP Consolidated Pachin EGP 37 256 355 32 304 518 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Accrued income 1 876 758 1 350 907 1 007 179 84 417 451 Suppliers advance payments 9 944 151 5 772 314 2 275 375 1 359 192 Employees loans 819 006 1 008 438 818 773 1 008 438 Deposits with others 2 813 746 3 442 908 1 936 256 2 271 364 Corporate tax* 28 860 101 28 860 101 28 860 101 28 860 101 Withholding tax 9 380 255 8 591 450 8 611 606 7 990 251 Sales tax 956 477 1 503 764 -- -- Prepaid expenses 14 050 -- -- -- Permanent custodies 79 685 -- -- -- Other debit balances 11 509 876 9 310 154 4 029 151 3 712 290 Less Impairment in debit balances ( 1 250 000) (1 250 000) (250 000) (250 000) Impairment in debtors ** (24 217) -- -- --

- 13-64 979 888 58 590 036 47 288 441 129 369 087 * This balance represents the amount of EGP 12.447 million, which represents the amount paid to the Tax Authority for the years 1993 1997, according to the decisions of the Internal Committee and the Appeal Committee. This amount will be settled against the provision available for this purpose, upon receiving the court decision. (Refer to Note No. 28), and the amount of EGP 16.413 million, paid on the due tax account for the years 1998 2001. ** Refer to Note No. (29) 15. Investments for Trading Purposes Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Investment certificates -- 12 455 793 -- 7 351 165 Treasury bills 77 530 568 97 244 017 12 663 364 30 259 765 77 530 568 109 699 810 12 663 364 37 610 930 16. Cash and Cash Equivalents Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Cash on hand 3 344 940 194 764 560 658 -- Banks current accounts 27 674 074 27 046 147 4 820 849 7 133 609 Banks time deposits 2 115 894 2 181 184 850 000 850 000 Checks under collection* 2 357 797 2 560 281 167 228 1 232 589 35 492 705 31 982 376 6 398 735 9 216 198 * Represents outstanding checks with due dates before 31/3/2011, collected after this date.

- 14-17. Provisions A-Provisions-Current Liabilities Balance as of 1/7/2010 Provision Formed during the Period Transfers during the Period Provision Utilized during the Period Balance as of 31/3/2011 EGP EGP EGP EGP EGP Provision for tax disputes 31 949 228 -- -- -- 31 949 228 Provision for claims 6 811 936 2 000 000 -- (382 221) 8 429 715 Other provisions 582 705 -- -- -- 582 705 B- Impairment & Provisions-Current Assets 39 343 869 2 000 000 -- (382 221) 40 961 648 Impairment in accounts receivable 12 700 900 -- 220 000 -- 12 920 900 Impairment in notes receivable 2 238 000 -- (220 000) (29 488) 1 988 512 Impairment in other debit balances 1 250 000 -- -- -- 1 250 000 Raw materials provision 1 500 000 -- -- (61 377) 1 438 623 Finished goods provision 798 649 -- -- -- 798 649 Spare parts provision 481 533 -- -- -- 481 533 18 969 082 -- -- (90 865) 18 878 217

- 15-18. Accounts and Notes Payable Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Accounts payable 76 602 702 52 622 764 9 773 290 9 587 541 Notes payable 682 573 1 516 775 30 766 133 404 77 285 275 54 139 539 9 804 056 9 720 945 19. Due to Subsidiary Stand-alone Financial Statements The balance of this account amounting to EGP 4 756 998, listed in the stand-alone balance sheet of Paints and Chemicals Industries Company (Pachin), represents the operations result between Paints and Chemicals Industries Company (Pachin) and El-Obour for Paints and Chemicals Industries Company (purchase and sale of raw materials), against EGP 3 428 464 as of June 30, 2010.

- 16-20. Other Credit Accounts Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Accrued expenses 2 574 176 10 953 807 1 100 104 8 028 545 Accounts receivable credit balances 14 969 960 18 383 333 3 081 168 2 511 476 Sales tax 2 229 993 3 139 696 101 413 103 731 Fixed assets - creditors 958 954 838 902 28 844 28 844 Deposit to others 8 765 323 6 473 457 1 492 475 1 179 984 Employees share in profits 2 898 929 2 205 309 50 489 46 357 Withholding tax 285 508 305 568 144 384 95 636 Current portion of sales tax settlements 58 258 116 498 -- -- Salary tax 488 780 174 534 488 780 174 534 Other employees benefits 3 902 781 4 082 371 3 902 781 4 082 371 Corporate tax Tax Authority 3 367 032 1 333 121 1 801 534 -- Other credit balances 4 342 115 1 879 311 664 389 443 105 21. Capital 44 841 809 49 885 907 12 856 361 16 694 583 The company s authorized capital amounted to EGP 200 million, and the issued and paid-up capital amounted to EGP 200 million, distributed among 20 million shares with par value of EGP 10 each.

- 17-22. Reserves Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Legal reserve 138 988 056 131 437 395 100 000 000 100 000 000 Reserve invested in governmental bonds 774 905 774 905 774 905 774 905 Fixed assets reserve 6 290 899 6 290 899 6 290 899 6 290 899 Other reserves 71 543 009 71 543 009 71 543 009 71 543 009 217 596 869 210 046 208 178 608 813 178 608 813 23. Long-Term Liabilities The long-term liabilities are represented as the deferred revenue related to El-Obour for Paints and Chemicals Industries Company granted assets, which will be recorded as revenue over the estimated useful lives of these assets in the amount of EGP 1 113 315.

- 18-24. Deferred Tax The balance of this account amounting to EGP 10 699 510 represents deferred tax liabilities resulting from the temporary differences between the net book value of fixed assets based on tax basis, and their net book value based on accounting basis as follows: Consolidated Pachin 31/3/2011 30/6/2010 31/3/2011 30/6/2010 EGP EGP EGP EGP Opening balance at the beginning of period/year 12 093 472 10 782 749 710 223 295 164 Deferred tax during the period/year (1 393 962) 1 310 723 315 419 415 059 Balance as of end of the period/year 10 699 510 12 093 472 1 025 642 710 223 25. Discontinued Operation Losses Animal extract product factory Inks factory Total 31/3/2011 31/3/2010 31/3/2011 31/3/2010 31/3/2011 31/3/2010 EGP EGP EGP EGP EGP EGP Discontinued operation revenue 3 000 479 000 -- 281 000 3 000 760 000 Less:- Discontinued operation expenses 616 177 1 536 185 53 804 390 829 669 981 1 927 014 Net Discontinued Operation Losses 613 177 1 057 185 53 804 109 829 666 981 1 167 014

- 19-26. Contingent Liabilities and Capital Commitments The uncovered portion of the Letters of Credit for purchasing inventory amounted to EGP 4 084 049 as of March 31, 2011 and the capital commitments for Letters of Credit amounted to EGP 2 399 826 as of March 31, 2011. 27. Managing the Risks Related to Financial Instruments a. Foreign Exchange Risk Foreign currency risk represents the change in currency rates which affects the receipts, disbursements and the translation of assets and liabilities in foreign currencies. The company exerts all efforts to avoid having a net foreign currency open position. b. Credit Risk This risk represents some customers' failure to pay their debts on due dates. The company forms a provision for doubtful debts to meet this risk. c. Interest Rate Risk This risk represents the changing of interest rates which affects the operations results. The company's management exerts all efforts to obtain the best conditions in the market for banking facilities and performs periodic review on the interest rates. d. Fair Value The fair value of financial instrument does not differ from the book value as of the balance sheet date. 28. Tax Position Paints and Chemicals Industries Company First: Corporate Tax The company is subject to corporate tax according to Law No. 91 for 2005. The company submits its tax returns on its due date and pays the due taxes. The Taxpayers Center reconciled the years until 2000/2001. This resulted in a credit balance for the company amounting to EGP 2 704 155. The Tax Authority inspected and assessed the company's books for years 2001/2002 until 2004/2005, and the company received a tax claim amounting to EGP 89 568 684, which the company objected. The disputed points were transferred to the Internal Committee and management believes that these claims will be greatly reduced. For years 2005/2006 until 2006/2007, the Tax Authority is currently scheduling the inspection time for the period from 2005 until 2007.

- 20 - Second: Sales Tax The Tax Authority inspected and assessed the company s books until June 30, 2006. Third: Salary Tax The Tax Authority inspected and assessed the company s books until 2004. Fourth: Stamp Tax The Tax Authority inspected and assessed the company s books from the inception date until 31/8/1998 and the due tax was paid. The Tax Authority inspected and assessed the company's books for the period from 1/9/1998 until 30/4/2002. The inspection resulted in due tax in the amount of EGP 175 307. The company did not pay this amount since there is due tax in favor of the company amounting to EGP 196 614. This amount represents the value of stamp tax for which a final ruling was issued in the company s favor. This amount is currently being settled with the Tax Authority. The Tax Authority inspected the period from 1/5/2002 until 31/3/2005, and the inspection resulted in due tax in the amount of EGP 127 027. The Tax Authority inspected the period from 1/4/2005 until 31/7/2006, and the inspection resulted in due tax in the amount of EGP 210 468. These items were discussed at the Internal Committee and the tax was reduced by the amount of EGP 196 032. El-Obour for Paints and Chemicals Industries Company Pachin First: Corporate Tax The company is enjoying a tax exemption starting from the first year of operation according to Law No. 8 for 1997 and its executive regulation. This exemption will end on June 30, 2011. The Tax Authority inspected and assessed the company's books from inception date until 2004/2005. The company received a tax claim amounting to EGP 5 950 500, which the company objected, and the disputed points were transferred to the Internal Committee. Second: Sales Tax The Tax Authority inspected the company's books for sales tax until June 30, 2008, and the due tax was paid, and the company s complaint is still under discussion. Third: Salary Tax The company's books where not inspected for salary tax yet.

- 21 - Fourth: Stamp Tax The Tax Authority inspected and assessed the company s books for the period from 11/1/1999 until 31/12/2000. The inspection resulted in due tax in the amount of EGP 20 000, which the company has objected. The Tax Authority inspected and assessed the company's books for the period from 1/1/2001 until 31/7/2006. The inspection resulted in due tax in the amount of EGP 363 809, which the company has objected, and the disputed points were transferred to the Internal Committee. Pachin for Inks First: Corporate Tax The company is subject to the provisions of Law No. 8 for 1997 and its executive regulation. The company started its operation on May 8, 2008, and the company was not inspected by the Tax Authority yet. Second: Salary Tax The salary tax are submitted to the Tax Authority on due date, and the company was not inspected by the Tax Authority yet. Third: Sales Tax Tax returns are submitted on a monthly basis, and the company was not inspected by the Tax Authority yet.

- 22-29. Investments in Pachin Libya The Arab Republic of Libya has been exposed during the period to significant political events that had an impact on the country s activities as a whole and therefore, the company`s investments in Pachin Libya located in Musrata City have been exposed to a risks that had a negative impact on the company`s performance, and the company was shutdown since last February. Therefore, many assets have been impaired as there is no information to determine if there is any economic benefit or cash flow from these assets at the current period. The total assets were impaired amounted to EGP 9 622 663 as follows: Item Fixed assets Project under construction Inventory Letter of credit Other debit accounts EGP 4 409 174 925 917 3 355 153 908 202 24 217 9 622 663 Chief Financial Officer Accountant: Ashraf El Kahky Managing Director Eng.: Mohy Eldeen Abdelrazik Chairman Dr.: Hoda Ahmed Salah Eldeen