Bahrain, April 29th , 2008 - United Gulf Bank Reports Strong First Quarter

Bahrain, 29 April 2008: United Gulf Bank B.S.C. – Bahrain (UGB) has announced one of the strongest first quarter results for the quarter period ended 31 March 2008. Net income of US$ 30.7 million or 3.8 US cents per share increased 14 percent over normalized income for the same period last year in a first quarter that saw high volatility and further disruption in the global capital markets. Net income of US$ 115.5 million in the first three months of 2007 included exceptional net gains of US$ 88.4 million on the sale of UGB’s telecom assets as well as the sale of the investment in United Fisheries of Kuwait.

Total revenues reached US$ 79.5 million from US$ 69.9 million normalized revenues in the same period last year with strong contributions from investment/trading income, growing fees and commissions from assets under management, as well as healthy organic growth in commercial banking particularly in Algeria, Iraq, Jordan and Tunisia. Operating income in the first quarter of 2008 of US$ 38 million was 14 percent higher than normalized operating income of US$ 33.3 million in the same period last year.

Net income of US$ 30.7 million or 3.8 US cents per share compares favourably with normalized first quarter 2007 results of US$ 27.0 million or 3.4 US cents per share.

Total consolidated assets reached US$ 2.85 billion compared to US$ 2.7 billion at year end in 2007and are supported by US$ 743 million of equity.

Commenting on the results, Chief Executive Officer, Mr William Khouri, remarked:

“This is an excellent first quarter for UGB and places us well on the path to achieve our 2008 forecast of US$ 141 million as declared at the KIPCO Group 2008 Shahfafiya Forum on 25 March 2008.”

“Yet again our diversified revenue streams have proven resilient in the face of global volatility. Assets under management increased to over US$ 9.6 billion as of 31 March 2008 from US$ 8.5 billion at the year end in 2007.”

UGB Managing Director and KAMCO Chairman, Mr Masaud Hayat, reemphasized his comments at the Bank’s 2008 Annual General Meeting:

“In line with KIPCO Group’s desire to streamline its financial services into two operations and encourage further organic growth, UGB is constantly assessing its activities in light of market conditions and business opportunities and is keen to further sharpen its focus on niches developed in investment banking and asset management. A more focused strategy for the Bank is being concluded and before being adopted will be discussed and disclosed to the Bank’s stakeholders including counterparties and regulators.”

“The result of the possible exit of certain maturing businesses could see a quantum leap in 2008 profits,” he concluded

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Note to editors:

UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment/asset management companies and commercial banks. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of 2007 assets under management exceed US$ 9. 6 billion (2007: US$ 8.5 billion). UGB’s core subsidiaries and associates include: Algeria Gulf Bank, Al Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Finance Corporation, Royal Capital Company, Syria Gulf Bank, Tunis International Bank, United Cable Company, United Gulf Bank Securities Company, United Gulf Financial Services Company, United Industries Company, United Medical Services Company and United Real Estate Company.

UGB and its subsidiary KAMCO have a proven track record of successfully completing around 60 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 8 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 21 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies operating across 21 countries. The company’s main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in real estate, industry, healthcare and the management & advisory sector.

For further information please contact United Gulf Bank on telephone +973 17533233 or email info@ugbbah.com.