29 December 2002 - Capital Intelligence re-affirms UGB’s Long Term Investment Grade Rating

Capital Intelligence – a leading Cyprus based credit rating agency - has re-affirmed United Gulf Bank’s investment grade " BBB- " long term rating. Capital Intelligence also re-affirmed UGB's “A3” Short Term and “3” Support ratings with a “Stable” outlook. Contributing to these robust ratings is the strength of UGB’s dominant shareholder – KPCH as well as the quality and diversification of the Bank’s asset base and sources of income. UGB took steps to strengthen and broaden its funding structure in 2002 with the raising of $60 MM of term certificate of deposit and loan facilities.

Commenting on the maintained ratings the Bank's Chief Executive Officer, Mr William Khouri stated:

"These ratings continue to reflect the basic strengths of the Bank which have enabled it to weather very difficult market conditions in 2001 and 2002 . United Gulf Bank’s net income of $9.4 MM for the first 9 months of 2002 out-performed the profit trend in the global and regional investment banking industry sector and the Bank has a strong asset base on which to grow its revenues in future .”

UGB is the investment banking arm and subsidiary of Kuwait Projects Company (Holding) KSC, Kuwait (KPCH). UGB has total assets of about $900 million supported by shareholders’ funds of over $200 million. UGB had been assigned an investment grade (BBB-) rating by Capital Intelligence. UGB’s main subsidiaries are Tunis International Bank, Tunisia; KIPCO Asset Management Company, Kuwait; UGB Securities Co; Bahrain and Algeria Gulf Bank SA (under formation), Algeria. UGB also has equity interests of 44% in Jordan Kuwait Bank, Jordan; 34% in United Real Estate Company, Kuwait and 49% in United Industries Company, 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.

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