M.S. Skyra takeover cancelled

Following previous announcements relating to the acquisition of 30% of the share capital of M.S. (Skyra) Vasas Ltd (MS) by Cyprus Cement Public Company Ltd (CCC) and 20% of the share capital of MS by Latouros Quarries Ltd (LQ), CCC and its related company LQ announce that:
1. On 20 December 2006 they had informed the existing shareholders of MS of their willingness and desire to conclude the above purchase, sale and transfer of the shares in accordance with the provisions of the agreement as amended,
2. They had informed the existing shareholders of MS that, in accordance with the provisions of the above agreement, CCC has assigned its rights, deriving from the above agreements, to its wholly owned subsidiary company, C.C.C. Building Materials Ltd,
3. They had called upon the existing shareholders of MS and requested that they fulfill, within 10 days from the 20th December 2006, their obligations in accordance with the provisions of the above agreements and transfer 30% of the share capital of MS to C.C.C. Building Materials Ltd and 20% of the share capital of MS to Latouros Quarries Ltd.
4. The existing shareholders of MS informed CCC and LQ that they are not willing to conclude the said agreement as amended and wanted to amend important terms of the agreement relating to the management of MS.
5. CCC and LQ did not accept these amendments and therefore the said agreement will not now be concluded.
6. CCC and LQ instructed their respective legal advisors to take all necessary actions in order to safeguard their interests.
7. The non conclusion of the above agreement is not expected to negatively affect the results or the affairs of CCC or LQ.