Unicorn Investment Bank

Unicorn Investment Bank achieves record results - Unicorn announces results for the nine months ended 30 September 2006 of US$64.1m revenues and US$34.9m net profit

Bahrain, 7 November 2006 - Unicorn Investment Bank B.S.C. (c) announces record results for the nine month period ended 30 September 2006. Earnings rose by 249%, from US$18.4 million in the first 9 months of 2005 to US$64.1 million in the first 9 months of 2006. Net profit increased to US$34.9 million, representing UIB’s best performance by far since its inception in May 2004.The record results delivered dramatic improvements in the key profitability and shareholder return measures. The Return on Equity in the first 9 months of 2006 improved to 20.5%; and EPS (earnings per share) climbed to 29 cents per share. The cost/income ratio (the measure of bank operational efficiency) improved from 101.5% in 2005 to 45.6% in 2006. UIB continues to follow a stable growth strategy in building its businesses and the resulting first 9 months cost growth of 57% was more than offset by the corresponding 249% surge in operating income.

Total assets have doubled during the first 9 months of 2006, rising from US$149.4 million at 31 December 2005 to US$299.2 million at 30 September 2006. Shareholders’ equity has more than doubled over the same period (to US$270.9 million) following the Bank’s successful round of capital raising in July 2006. The enhanced capital base will fund further organic and inorganic business growth and so support the Bank’s strategy to offer clients a fully integrated range of competitive Shari’ah-compliant products and services on a global basis.

Mr. Majid Al-Sayed Bader Al-Refai, UIB’s Managing Director & Chief Executive Officer said: “We have achieved with the grace of Allah a major uplift in both our earnings and profitability and significantly strengthened our income streams, liquidity and capital base. The combination of increased earnings and enhanced capital provides a solid platform for expansion via strategic acquisitions and continued organic growth.”

UIB has consolidated a strong market position since its inception in 2004 by creating a foothold in selected markets, particularly in the GCC countries, Southeast Asia and the United States. The increased capital base enhances the Bank’s earnings potential going forward.