Yokohama, Japan - JGC Corporation, as Managing Partner in a consortium including Marubeni Corporation, Itochu Corporation, both of Japan, and ACWA Power Projects of Saudi Arabia, has successfully concluded negotiations with Saudi Arabian Oil Company ("Saudi Aramco") and Sumitomo Chemical Company Ltd. ("Sumitomo Chemical") of Japan to develop a fuel oil-fired cogeneration and desalination plant for the Rabigh Refinery and Petrochemical Complex in the Kingdom of Saudi Arabia on a build, own, operate and transfer basis. The concession, as stipulated in the Water and Energy Conversion Agreement (the "WECA") signed on 7th August, 2005, is for an initial term of 25 years.

Saudi Aramco and Sumitomo Chemical (the "Partners") have joined forces to develop one of the world's largest integrated refining and petrochemical complexes at the Red Sea town of Rabigh on the west coast of Saudi Arabia. An olefin, along with large volumes of gasoline and other refined products, will be produced annually upon completion.

The JGC consortium will establish a special purpose company resident in Saudi Arabia to act as the corporate vehicle for the project. The new company will move swiftly to conclude the remaining project and finance agreements in preparation for financial closing currently targeted for 31 December of this year. The newly constructed plant is scheduled to enter into commercial operation in June 2008.

The JGC Consortium submitted its offer on 30 April of this year following an international request for proposals issued by the Partners. After a rigorous commercial and technical evaluation, the Consortium was selected as Preferred Bidder in June and successfully concluded the WECA today. While the success is chiefly attributed to the consortium's competitive pricing, JGC had constructed a number of plants for Sumitomo Chemical and Saudi Aramco over the years. Through the years, JGC and the two clients, particularly at the top management levels, have built a strong relationship of trust. Marubeni has a track record in IPP businesses, which was highly evaluated by the clients. Moreover, Itochu's experience in the water business in Saudi Arabia, ACWA Power Projects' local experience and recent success in the IPP business in the Kingdom, and MHI's long tradition both as an equipment supplier and EPC contractor to each of the Partners all contributed to the success of the Consortium.

At present, JGC is carrying out the Front-End Engineering and Design services of a High Olefin Fluid Catalytic Cracker and an Ethane Cracker, the main facilities in this complex, while the JGC works diligently to get the engineering, procurement and construction services for the plants. By investing in this business, JGC will make a variety of contributions toward the successful completion of the complex. The project is the second straight awarded for large-scale independent water and power project in the Middle Eastern region following the one that JGC and Marubeni won in January 2005 for the world's largest independent water and power project with a total investment of 3 billion US dollars.

JGC has unveiled a new medium-term management plan, Scenario 2010, in July 2005. The plan aims to expand and strengthen investing in enterprises. Many similar projects are being planned in the Middle Eastern region. JGC will actively pursue roles in such projects.