02 September 2004 - Capital Intelligence Upgrades UGB's LT Rating

United Gulf Bank’s investment grade foreign currency long-term rating has been upgraded from BBB- to BBB by Capital Intelligence, the international emerging markets rating agency. The Bank’s short-term rating remains unchanged at A3 and the outlook is stable.

UGB's ratings are underpinned by enhanced recurring income streams from subsidiaries and core investments, strong support from parent company Kuwait Projects Company Holdings (KIPCO), record profitability in 2003 and 2004, potential gains in investment portfolios and continued growth momentum.

Commenting on the upgrade, UGB Chief Executive officer William Khouri said: "We are very pleased to have our achievements recognised by Capital Intelligence. This reflects the Bank’s consistently favourable results in difficult markets, as well as our solid financial standing and excellent future prospects."

Now in its Silver Jubilee (25th) year, Bahrain-based UGB manages a diversified portfolio of investments in wealth and asset management, commercial banking, real estate, telecommunications, private equity and quoted securities.

Performance at UGB’s major subsidiaries and associates has been extremely strong, contributing to a substantial appreciation in market value over carrying cost. Core investments in subsidiaries and associates include: KIPCO Asset Management Co. (KAMCO), Kuwait; United Real Estate Company, Kuwait; Jordan Kuwait Bank, Jordan; Tunis International Bank, Tunisia; Algeria Gulf Bank, Algeria; UGB Securities Co., Bahrain; United Cable Company, Kuwait; United Industries Company, Kuwait; and Gulf Egypt for Hotels and Tourism Company, Egypt.

UGB and its subsidiary KAMCO have proven track records 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. UGB’s assets under management exceed US$ 4.0 billion.

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