Dallah Albaraka Group and TII Business Deal

Ground-breaking US$ 300-plus million deal will create pan-regional financial powerhouse combining the strength of DBG's Islamic commercial and retail banking network with the investment banking expertise of TII.

Dallah Albaraka Group ('DBG') and The International Investor ('TII') announced today, Saturday 9 June 2001, that they had reached a memorandum of understanding to combine DBG's assets in a number of banking subsidiaries with TII. The deal will create the first Islamic financial services group to offer a full range of investment, commercial and retail banking services to clients across the Middle East and Africa. The new entity will become the world's largest Islamic financial services group in terms of geographical coverage, meeting client requirements across eleven markets. TII intends to increase its capital through a new share issue at KD 0.255 a share and will use the proceeds to conclude the deal. DBG will become a major shareholder in the new entity. Further details of the deal will be unveiled by Sheikh Saleh A Kamel, chairman of Dallah Albaraka Group and Adnan Al Bahar, chairman and managing director of TII, at a signing ceremony and press conference to be held in the near future.

Sheikh Saleh A Kamel said of the deal: "This deal represents a huge opportunity for DBG and TII as the new entity will be the first Islamic financial services group ready to meet the new regional economic challenges. We will be in a unique position to meet all our customers' requirements for full service banking on a truly pan-regional basis. "We see exceptional prospects for sustainable growth and profitability, underpinned by a uniquely diversified revenue stream.

Adnan Al Bahar said of the deal: "The new entity will build on the expertise and complementary capabilities of both parties, while offering shareholders, clients, business partners and staff the advantages and security of being part of a new global Islamic powerhouse. "No other entity can offer the breadth and quality of products and services across such a wide geographical base. The new financial services group will lead the way in driving the growth of the global Islamic financial market.”

The deal is subject to approval by the shareholders of both companies, as well as by the relevant regulatory authorities. This announcement follows a request by TII to the Kuwait and Bahrain Stock Exchanges to resume trading of TII shares forthwith.