CAIRO - (April 21, 2003) This morning, the U.S. Trade and Development Agency (USTDA) and the Egyptian Petrochemical Holding Company (Echem) entered into a $756,000 grant agreement to fund a feasibility study on the establishment of a greenfield linear alkyl benzene facility in Egypt. Mr. James Joy, Senior Commercial Officer at the U.S. Embassy in Cairo, signed the grant agreement on behalf of the U.S. Government. Dr. Sherif Ismail, Executive Deputy Chairman, signed on behalf of Echem.

Linear Alkyl Benzene (LAB) is a preferred petrochemical feedstock for synthetic detergents. It is used in both domestic and industrial applications because of its low cost, optimal detergent properties, and a demonstrated biodegradability in all uses.

The USTDA-funded study will examine the technical, economic and marketing feasibility of building a petrochemical plant capable of producing 80,000 metric tons per annum (MTA) of LAB. The current Egyptian total domestic consumption of LAB is 50,000 MTA, which is met by domestic production. By the year 2006, Echem expects that the domestic consumption will increase to 70,000 MTA. The proposed 80,000 MTA plant would increase Egypt's total LAB domestic production to 130,000 MTA. Echem plans to export its surplus production to buyers in Europe and/or the Middle East.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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