Announcement by BATIC Investment and Logistics Company Regarding Notification of an Execution Order Against Its Subsidiary

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Announcement Detail	BATIC Investment and Logistics Company announces that it was notified by its subsidiary, Smart Cities Telecommunications and Information Technology Solutions Company (a Closed Joint Stock Company), on 05/07/2026, of its receipt of a notification of an execution order issued by the Administrative Execution Court, based on an executive instrument issued in favor of the Al-Qassim Region Municipality (Furas Platform), in the amount of SAR 42,212,187.50 (inclusive of Value Added Tax). This claim relates to a municipal real estate investment contract (for the leasing, development, operation, and maintenance of linear, multi-level, and hydraulic smart parking facilities and parking areas in the center of Buraidah city), which was terminated by the Al-Qassim Region Municipality during February 2025. The Company wishes to clarify that Smart Cities Telecommunications and Information Technology Solutions Company (a subsidiary of BATIC) has taken the necessary legal measures in this regard, having filed a lawsuit before the Administrative Court in Buraidah seeking cancellation of the invoice. A ruling was issued dismissing the lawsuit, which was appealed before the Administrative Court of Appeal in the Riyadh Region; the appellate court upheld the ruling under appeal. Smart Cities Telecommunications and Information Technology Solutions Company has since filed a petition for cassation (annulment) of the ruling before the Supreme Court, in accordance with the applicable statutory procedures

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Explanation

Announcement Detail

BATIC Investment and Logistics Company announces that it was notified by its subsidiary, Smart Cities Telecommunications and Information Technology Solutions Company (a Closed Joint Stock Company), on 05/07/2026, of its receipt of a notification of an execution order issued by the Administrative Execution Court, based on an executive instrument issued in favor of the Al-Qassim Region Municipality (Furas Platform), in the amount of SAR 42,212,187.50 (inclusive of Value Added Tax).

This claim relates to a municipal real estate investment contract (for the leasing, development, operation, and maintenance of linear, multi-level, and hydraulic smart parking facilities and parking areas in the center of Buraidah city), which was terminated by the Al-Qassim Region Municipality during February 2025.

The Company wishes to clarify that Smart Cities Telecommunications and Information Technology Solutions Company (a subsidiary of BATIC) has taken the necessary legal measures in this regard, having filed a lawsuit before the Administrative Court in Buraidah seeking cancellation of the invoice. A ruling was issued dismissing the lawsuit, which was appealed before the Administrative Court of Appeal in the Riyadh Region; the appellate court upheld the ruling under appeal. Smart Cities Telecommunications and Information Technology Solutions Company has since filed a petition for cassation (annulment) of the ruling before the Supreme Court, in accordance with the applicable statutory procedures