JEDDAH, 8 February 2007 — The board of directors of Saudi Research & Marketing Group (SRMG) has advised its general assembly to distribute SR160 million, which accounts for 20 percent of the capital, as dividends to its shareholders, according to a report carried by Tadawul’s website. The shareholders will get a dividend of SR2 per share if the board’s decision is endorsed by the general assembly. All shareholders registered on the day of the general assembly meeting will be entitled to the dividend.

SRMG, which publishes Arab News and other publications including Asharq Al-Awsat and Al-Eqtisadiah dailies, made a net profit of SR261 million in 2006, 44 percent higher than in 2005.

The decision to distribute dividends reflects the financial strength of the company which is the largest media organization in the Middle East. The board also said that the company would take further measures to ensure better returns for its shareholders.

“SRMG intends to distribute dividends annually, matching the company’s revenues, financial position, market condition and the general economic environment,” the website said.

As a result of an increase in profits in 2006 the profitability of SRMG shares rose by 44 percent, reaching SR3.3 per share, said an official statement by the group.

The company’s total revenues in 2006 grew by nine percent to SR1.159 billion compared to the previous year while total profits in 2006 grew by 17 percent to SR467 million against SR399 million in 2005.

Operating profits rose by 18 percent from SR207 million in 2005 to SR244 million last year. The group posted a fourth quarter profit of SR68 million in 2006 compared to SR43 million during the same period in 2005, the statement said.

Prince Faisal Bin Salman, chairman of SRMG, expressed his happiness at the company’s excellent financial performance last year. “We have achieved this as a result of the blessing of God as well as the efforts of an integrated team of workers,” he said. Prince Faisal hoped that SRMG would achieve better results during the current fiscal year. “We have set out short- and long-term strategic plans and started implementing them in order to take the company to new heights,” he added.

The SRMG strategy was outlined at the group’s first board meeting following the IPO (initial public offering) in April last year. The strategy entails divesting from or selling loss-making ventures and restructuring the flagship entities of the group with an emphasis on improving quality and performance.

The group’s board of directors has approved the sale of 30 percent of its wholly owned affiliate, Al-Madina Printing & Publishing Company, in an IPO targeted for early 2007. “We’ll use the returns from the IPO to expand the group’s activities, either through entering new investment projects or by further strengthening the group,” explained Prince Faisal.