22 March 2004 - UGB Forecasts $42 MM Profit for 2004

The KIPCO Financial Outlook Forum's second session at Kuwait Stock Exchange today heard forecasts for increased profits and growth from Burgan Bank and United Gulf Bank (UGB), two companies in the financial services sector of the KIPCO Group's corporate portfolio.

The Forum, involving KIPCO and its directly-held listed subsidiaries and associates in three separate presentation sessions for investors, is the first large-scale event of its kind in Kuwait. Organised by KIPCO Asset Management Company (KAMCO), the Forum is aimed at presenting the companies' financial details and outlooks in a spirit of transparency, with free and open dialogue between management and investors.

Burgan Bank's presentation by Chief Executive Officer designate Jonathan Lyon charted the drive and innovation of Kuwait's leading technology-driven commercial bank, which is also the country's first ISO-certificated financial institution. In 2003 Burgan Bank recorded a strengthened balance sheet, strong financial performance with profit up 61 per cent, sharply-improved shareholder return with a cash dividend of 15 fils, up by 88 per cent, and bonus shares of five per cent. Earnings per share were 24.9 fils, an increase of 60 per cent.

Included in his forecasts for 2004 were continued strong financial performance, including projected profit increase of 43 per cent to KD 30 million, and projected earnings per share rise of 36 per cent to 34 fils, which would represent an overall growth of 118 per cent in earnings per share since 2002.

The presentation by UGB of Bahrain, KIPCO's investment banking subsidiary, focused on the continuing contributions from its subsidiaries and associates. Chief Executive Officer William Khouri outlined the exceptional 2003 financial results and achievements of KAMCO, United Real Estate Company, Jordan Kuwait Bank, Tunis International Bank and Algeria Gulf Bank. Emphasis was placed on the strength of the overall investment portfolio, and also the growing income expectations to be generated from allocations to trading portfolios and private equity investments, as well as corporate finance and asset management services.

UGB, one of the best-capitalised regional investment banks, recorded record results in 2003 and diversified into the regional telecommunications sector through involvement with Wataniya Telecom - also a KIPCO Group company - in Iraq and Algeria. Mr. Khouri said UGB was forecasting continued growth in 2004, with a 17 per cent increase in net income to US$ 42 million, a 10 per cent rise in earnings per share to 5.20 cents, and a seven per cent increase in return on average equity to 16.43 per cent.

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 force in financial services and media & telecommunications, with further interests in real estate and industry. The largest private company in Kuwait, KIPCO employs 10,000 people internationally and its shares are the most actively traded on the Kuwait Stock Exchange.

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