Middle East Paper Co. Announces the Latest Developments Regarding the Previously Announced Property and Completion of the Title Deed Transfer in the Name of the Company

Element List	Explanation
Introduction	With reference to the announcement made by Middle East Paper Co. (“MEPCO” or the “Company”) on 16-10-2022 regarding a real estate lawsuit filed against the Company by Al Shorouq Al Motatawera Development Company, claiming ownership of a property for which a final judicial decision had previously been issued in favor of MEPCO, and MEPCO’s subsequent announcement dated 19-10-2022 regarding the clarification of the nature of the property subject to the lawsuit being an empty land. With reference to the Company's subsequent announcement on 19-06-2023 regarding the issuance of a preliminary judgment by the General Court in Jeddah (the competent circuit) to dismiss the case in favor of MEPCO. With reference to the Company's subsequent announcement on 25-09-2023 regarding the issuance of a final judgment in favor of the Company by the Court of Appeal, upholding the preliminary judgment No. 4431011851 dated 29-11-1444H, corresponding to 18-06-2023. The Company announces the completion of the title deed transfer in the name of the Company. The property is a vacant plot of land located in the Hadda area, on the old road connecting the cities of Jeddah and Makkah, with an area of 966,488.93 square meters, with no construction on it. Accordingly, the land will be reclassified as assets in the financial statements. The exact impact cannot be determined at the moment, and the impact will be reflected in the second quarter of the financial year 2026. (Please see below for more details.)
Previous Announcement	Latest developments previously announced regarding Middle East Paper Co.'s announcement of a lawsuit filed against the Company
Date of Previous Announcement on Saudi Exchange’s Website	2023-09-25 Corresponding to 1445-03-10
Hyperlink to the Previous Announcement on the Saudi Exchange Website	Click Here
Latest Developments Of The Announced Event	Completion of the title deed transfer in the name of the Company.
Reasons For The Delay on The Date of The Event Previously Announced	Not applicable
The costs associated with the event, and if they have changed or not with indication of the reasons.	The Company incurred legal fees in connection with following up on the title transfer procedures, and their impact will be reflected in the financial statements for the second quarter of 2026
Delay consequences on the Company’s financial results	Not applicable
Additional Information	It should be noted that the land had previously been reclassified from property, plant and equipment to advances paid for the acquisition of land, pending the transfer of control (i.e., transfer of title deed ownership in the records of the notary public) to the Company. As a result, an amount of SAR 32.3 million was reclassified as advances paid for the acquisition of land under current assets for the period ended June 2022, with comparative figures for the year ended 31 December 2021. Please refer to page 13 of the financial statements announced on Tadawul for the second quarter of 2022. The external auditor also drew attention in the financial statements for year ended 31 December 2025 and the financial statements for the first quarter of the financial year 2026 to Note 10(b) to the condensed consolidated interim financial statements, which describes the advance payment made by the Group in previous years to purchase land through a public auction. As at 31 March 2026, although there was no dispute over the legal ownership of the land, the administrative and execution procedures required to complete the transfer of the title deed into the Group's name were still in progress. Accordingly, the land will be reclassified as assets in the financial statements. The exact impact cannot be determined at the moment, and the impact will be reflected in the second quarter of the financial year 2026.