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Union Construction And Investment realizes a loss of $29 thousand in 1H 2011

2011-08-16

The Palestine Exchange (PEX) received reviewed interim consolidated condensed financial statements from Union Construction And Investment Company (UCI). The PEX disclosure rules in place give all of the PEX listed companies a period of 45 days to report their first half interim financial statements as reviewed by their independent external auditor. Their disclosure has been published on the PEX website (www.pex.ps) and emailed to PEX member securities firms in conjunction with this press release.

The disclosed information includes: Independent Accountants" Review Report, the Statement of Financial Position, a Statement of Income and Comprehensive Income, Changes in Equity Ownership, the Statement of Cash Flows and Notes to the interim financial statements (25 notes). The company also provided its interim financial statements via the approved electronic form of disclosure applicable to the Investment Sector. The interim report also includes the additional information required by Article (38/2) of the PEX disclosure rules in place concerning management, issued shares, material changes and significant events that may have affected financial performance during the first half of the year.

According to company data for the first half of this year, net loss reached (29,916) USD, compared with a net profit before taxes of 2,821,565 USD from the first half of 2010. Total assets of the company have reached 50,237,186 USD as of June 30th, 2011, compared to total assets of 50,233,176 USD as of December 31st, 2010, a net increase of 0.01%. Total liabilities of the company have reached 2,333,194 USD as of June 30, 2011, compared to total liabilities of 2,148,521 USD as of December 31st, 2010, a net increase of 8.6%. Net ownership equity of the company has reached 47,903,992 USD (including 277,622 in minority rights) as of June 30th, 2011, compared with a net ownership equity of 48,084,655 USD (including 266,311 in minority rights) as of December 31st, 2010, a net decrease of 0.4% in the last six months.

Within the conclusion in the Independent Auditors’ Review Report (Talal Abu-Ghazzaleh), the following was conveyed: Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated condensed financial statements are not, in all material aspects, presented in accordance with International Accounting Standard No. (34) . An additional paragraph, “Emphasis of Matters”, was included after the conclusion and it conveyed: UCI did not have tax clearance on income since inception through June 30th, 2011. Furthermore, the way UCI calculates indemnity is not in compliance with Palestinian Labor Law.