24 April 2005 - Record Quarter for UGB - 43% Increase on First Quarter 2004

United Gulf Bank B.S.C. – Bahrain (UGB), the investment banking subsidiary of KIPCO (Kuwait Projects Company Holding), has announced profit of US$ 16.3 million for the first quarter of 2005, or 2.13 cents per share.

This represents a 43 per cent increase over the US$ 11.4 million net profit earned during the same period last year, and follows UGB’s best-ever full year net profit of US$ 43.3 million in 2004.

UGB chief executive officer William Khouri said: "The first quarter performance was at historic levels supported by strong trading gains and disposals, as well as continued growth in our core businesses and in particular the wealth management services provided by KAMCO. This is an excellent start to a year which promises to continue the momentum of the past two record earning years and deliver yet a third year in a row of historic net income."

UGB’s total consolidated revenue of US$ 42.5 million in the first three months of 2005 increased by 86 per cent over the US$ 22.9 million recorded in the same period last year. Contributing to this record first quarter revenue were realized and un-realized gains on the trading book of $10.3 million, gain on sale of investments available for sale of $7.5 million, dividend income of $4.5 million, fees and commissions of $7.3 million and share in profit of associated companies of $8.2 million. Total consolidated assets at 31st March, 2005 were US$ 1.47 billion, supported by total consolidated shareholders’ equity in excess of US$ 289 million. The excess of market value over carrying cost of UGB’s investments in publicly quoted subsidiaries and affiliates now stands in excess of over $500 million.

UGB manages a diversified portfolio of investments in wealth and asset management, commercial banking, real estate, telecommunications, private equity and quoted securities.

Core investments in subsidiaries and associates include: Algeria Gulf Bank, Algeria; Gulf Egypt for Hotels and Tourism Company, Egypt; Jordan Kuwait Bank, Jordan; KIPCO Asset Management Company (KAMCO), Kuwait; Tunis International Bank, Tunisia; UGB Securities Co, Bahrain; United Cable Company, Kuwait; United Industries Company, Kuwait; and United Real Estate Company, Kuwait.

UGB and its subsidiary KIPCO Asset Management Company (KAMCO) have a proven track record of successful investment banking transactions including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement. Assets under management exceed US$ 4.9 billion.

KIPCO, with assets of more than US$ 10 billion under management or control, is one of the leading diversified holding companies in the Middle East and North Africa and a major regional force in financial services and media & technology, with further interests in real estate and industry. The largest private sector company in Kuwait, KIPCO employs more than 10,000 people internationally and its shares are among the most actively traded on the Kuwait Stock Exchange. UGB forms part of KIPCO’s financial services group which operates banks and investment companies in Algeria, Tunisia, Jordan, Palestine, Cyprus, Bahrain, Kuwait and the USA with operations planned in Iraq and Syria.

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