Manama, Bahrain, Tuesday 23rd February 2010 - Gulf Finance House (GFH) announced today that it has reached an agreement with the Liquidity Management Center (LMC) syndicate to rearrange the Wakala facility.

Under the terms of the new arrangement, the existing payment obligations of US$50m in March 2010 and US$50million in March 2011 have been amended such that US$20m will be made in March 2010 with the remaining US$80m paid over 4 installments of US$20m each every six months until the full amount has been paid in 2012.

"GFH is glad to have successfully reached a deal regarding our Wakala facility with the LMC syndicate," commented GFH Chairman, Esam Janahi. He added "We have once again demonstrated the faith and confidence that leading financial players in the market have in GFH's business model and the strategy that the Bank's management team are following. By reaching this agreement with the LMC syndicate and also continuing our efforts to pursue assets sales gives the Board confidence in GFH's ability to manage both its debt and capital adequacy ratios and meet going concern standards. We would like to thank the facility manager and syndicate member LMC for their continued support and the rest of the syndicate members for their understanding and commitment to GFH."

LMC CEO Ahmed Abbas confirmed on behalf of the syndicate that the deal has been agreed and said "The syndicate applauds the decisive action that GFH has undertaken, especially over the past six months to place itself in a position of growth and return to profitability. They are continuing with the right strategy and we look forward to seeing the fruits of their work".

GFH Group CEO, Ted Pretty also said: "We have now achieved our objective of spreading the tenor of our obligations we will continue to steady and strengthen our liquidity position as we concentrate on revenue generation and cost control. I am confident we will generate a positive reaction in the market and amongst the investors once we announce shortly our products from our 2010 pipeline."

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About Gulf Finance House
Established in 1999, Bahrain based Gulf Finance House (GFH) is one of the most successful and innovative Islamic investment banks in the Middle East. GFH historically focused on the conception and delivery of high value economic infrastructure projects. The Bank has also offered a diversified product range with a number of venture capital, private equity and asset management initiatives in addition to pioneering a number of Islamic financial institutions.

In addition to its share listings on the Kuwait and Bahraini Stock Exchange's and the Dubai Financial Market, 2007 witnessed the Bank's GDR listing on the London Stock Exchange. Over the past year, GFH has evolved its business model with a view to establishing itself as the world's leading Islamic investment bank. Under this new structure GFH will essentially operate with two primary businesses, GFH Real Estate & Infrastructure and GFH Capital.

The Bank has won numerous local and international awards as a testimony of its commitment to excellence and its pioneering and innovative approach, including "Best Investment Bank 2008", by Islamic Banking and Finance, "Best Investment Bank" three years running (2005-2007), awarded by Banker Middle East; "Best Islamic Investment Bank" by World Finance 2007; "MENA Investment Bank of the Year 2008" by Acquisitions Monthly; "Best Investment Bank 2008", by Islamic Banking and Finance; and "Best Islamic Finance House" at the Banker Middle East Industry Awards 2009.

For further information please contact:
Ahmed Al Derazi
PR-Corporate Communications Department
Tel: +973 17538538 Ext 274
Email: aalderazi@gfh.com
Website: www.gfh.com

© Press Release 2010