22 April 2004 - UGB Profits Up 89 Per Cent in 2004 First Quarter

United Gulf Bank B.S.C. - Bahrain (UGB), the investment banking subsidiary of KIPCO (Kuwait Projects Company), has announced US$ 11.4 million in profit for the first quarter of 2004, or 1.49 cents per share. This represents an almost doubling of net income with an 89 per cent increase over the US$ 6.0 million earned during the same period last year, and follows UGB's record full year net profit of US$ 36.2 million in 2003.

UGB Chief Executive Officer William Khouri commented: "The first quarter of this year saw a significant contribution from our asset management business, in particular the trading portfolios managed by KIPCO Asset Management Company (KAMCO). Earnings from core associates and subsidiaries as well as dividends from other investments maintained their momentum and, as expected, constituted a major part of the results."

"UGB is firmly on track to deliver another year of record earnings as it enters its Silver Jubilee year. During the quarter, further steps were taken to progress new strategic initiatives including the alliance with Doha Bank, an equity stake in the third mobile license in Algeria, and Algeria Gulf Bank. We are pleased to announce that our subsidiary in Algeria opened its doors to the public on March 16," he concluded.

UGB's total consolidated revenue in the 2004 first quarter of US$ 22.9 million increased 38 per cent over the US$ 16.6 million recorded in the same period last year. Total consolidated assets at March 31, 2004 were US$ 1.25 billion and total consolidated shareholders' equity reached US$ 249.4 million.

UGB's main subsidiaries are Tunis International Bank, Tunisia; KAMCO, Kuwait; UGB Securities Co., Bahrain; and Algeria Gulf Bank, Algeria. UGB also has equity interests of 44 per cent in Jordan Kuwait Bank, Jordan; 34 per cent in United Real Estate Company (URC), Kuwait; and 49 per cent in United Industries Company (UIC), Kuwait.

UGB's activities consist of private equity and fund investments, quoted equities, asset management, corporate finance, real estate, treasury and selective commercial banking services.

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 & telecommunications, with further interests in real estate and industry. KIPCO's net profit in 2003 soared by 182 per cent to US$ 61.8 million, reflecting the effectiveness of its long-term strategies to build sustainable profits and grow the value of the Group.

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