Tihama Advertising, Public Relations and Marketing Company announces the latest developments regarding the labor lawsuit filed by the former CEO against the company.

And the company’s announcement on October 13, 2025, on the issuance of the preliminary ruling obligating the company to pay the plaintiff the sum of 12,223,078.77 Saudi Riyals.

The company announces that it has received from the company’s lawyer, Mohannad Al-Balkhi Law Firm for Legal Consultations the Court Judgment issued by the competent division of the Labor Court of Appeal dated 29-06-1447 AH, which ruled to accept, in both form and substance, the appeal submitted by the company against the previously issued first-instance judgment in the labor case filed by one of the former employees.

As a result of the appellate judgment, the following was decided:

1. The first-instance judgment issued by the Eighth Labor Division of the Labor Court, No. (4731465072) dated (20/4/1447 AH), was partially overturned with respect to the amount of compensation awarded.

2. The total amount awarded against the Company was reduced from SAR 12,223,078.77 (twelve million two hundred twenty-three thousand seventy-eight Saudi riyals and seventy-seven halalas) under the first-instance judgment to a total amount of SAR 1,702,078.77 (one million seven hundred two thousand seventy-eight Saudi riyals and seventy-seven halalas) pursuant to the appellate judgment, representing a substantial reduction exceeding 86% of the original amount.

3. Dismissal of the remaining claims of the claimant set forth in the lawsuit.

4. Obliging the Company to provide the claimant with a certificate of service in accordance with Article (64) of the Labor Law.

The Company would like to emphasize that the appellate judgment resulted in a significant reduction in the disputed financial obligations and does not have any material adverse impact on the Company’s financial position, as the financial impact will be accounted for in accordance with the applicable accounting standards.

The Company will disclose any material developments in this matter in due course in accordance with the relevant laws and regulations.