FLSmidth signs innovative contract to operate and maintain cement plant

Company Announcement no. 22-2007, 08 October 2007

FLSmidth has - as part of its strategy to reduce the effect of the
cyclical element in sales of new cement and minerals plants - taken
up long-term operation and maintenance of cement plants.

After one year's development of the concept, FLSmidth has now signed
an innovative O&M-contract worth DKK 275m (EUR 37m) for the operation
and maintenance of a cement plant in Egypt built by FLSmidth.

The customer, Arabian Cement Company (ACC) has entrusted FLSmidth
with the day-to-day operation and maintenance of the new cement plant
for five years starting from the inauguration in early 2008.

The contract entails that FLSmidth will be responsible for
recruitment, instruction and further training of some 150 local staff
who will be in charge of operating and maintaining the plant. Under
the contract FLSmidth will also be responsible for maintaining a
stock of spare parts that will guarantee maximum operational
stability. The aim is also to ensure a high level of production
efficiency through continuous upgrading of the production process and
ongoing training of the staff.

FLSmidth is the only supplier of cement plants in the world to offer
total package solutions comprising highly qualified staff and
optimised utilisation and maintenance of production plants. FLSmidth
has experience in operation and maintenance contracts from the
Group's Minerals activities which for several years have undertaken
similar contracts. It should be noted that neither in its Minerals
business nor in its Cement business do the O&M contracts involve
ownership in the plants for FLSmidth."With the signing of this contract, FLSmidth's relationship with ACC
has shown the way for a new form of ongoing partnership which we
expect to have a positive influence on the future development of our
business and the cement industry as a whole," Group CEO Jørgen Huno
Rasmussen says.

FLSmidth's ambition is to continue to refine the "Operation &
Maintenance" (O&M) concept so that it becomes the preferred solution
in the industry, alongside the traditional supply contracts.

The order will contribute beneficially to FLSmidth's earnings until
the contract expires in early 2013.

                    ----------------------------

Please address any questions regarding this announcement to Group
Chief Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at
+45 3618 1800.

For further information about FLSmidth, please visit
www.flsmidth.com.


Yours faithfully

Torben Seemann Hansen
Corporate Public Relations