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UFK Posts Nine Months Net Profit of KD 5.2 Million (US$ 17.6 Million)

Kuwait City - United Fisheries Company of Kuwait (UFK), part of Kuwait Projects Company (KIPCO) Group, has posted net profit of

KD 5.2 million (US$ 17.6 million), or 33.66 fils (11.53 cents) per share for the first nine months of 2005, compared with KD 937,000 (US$ 3.2 million) or 6.15 fils (2.1 cents) per share for the same period of 2004.

Chairman Amer Theyab Al Tameemi said UFK was implementing a development plan covering all aspects of its business, aimed at reinforcing the Company's leading position in the seafood products market. The excellent results reflected the success of this strategy, which was focused on steady growth, improving performance level and utilisation of advanced operating systems, he said.

UFK is a leading producer of high-quality seafood products and one of the top foodstuffs companies of Kuwait and the Arabian Gulf. A subsidiary of KIPCO's United Industries Company (UIC), UFK owns and operates a fleet of modern fishing vessels, which supplies seafood catches for processing at its new high-tech Doha plant in Kuwait. The company's range of shrimp and fish products, produced to the highest international quality standards, is distributed throughout Kuwait and exported to other countries of the Arab world.

Al Tameemi said UFK was striving to maintain its sales leadership in the seafood products market, and increased its local market share with supplies of large quantities of fresh and frozen fish to supermarkets, while also locating other premium marketing outlets.

The Company was also importing various seafood product to provide hotels and restaurants with highest quality fish and shrimp, as well as to covering a shortfall on local production and improving price levels. UFK's management has also adopted more effective marketing policies and plans, as part of its efforts to grow sales and upgrade customer service.

He said UFK was also seeking further expansion in foreign markets, with exports to Arab and European markets continuing during the first nine months of 2005. It was noteworthy that the Company had resumed exports to the Japanese market, and fish shipments had also been exported to China alongside efforts to expand into other markets. In doing so, the Company was adopting a balanced strategic marketing policy ensuring consistent sales growth and further growth of income and profits.

Fishing operations for the new season began in August with full deployment of the Company's fleet. Al Tameemi said results were good compared with those of same period of 2004, and catches were expected to increase during the coming months.

He said the Company's Doha plant is equipped with the latest technology equipment for processing and packing of fish and shrimp. The plant produces shrimp in a variety of attractive packets of different sizes to meet the needs of various customer segments, while ensuring compliance with the highest international standards of quality. The Doha plant is expected to cover the needs of the local market, and the surplus production will be exported to foreign markets. Al Tameemi said the plant was pivotal for the Company's strategy of expanding packed products line for increasing production maximised income.

He thanked the Company's customers for their continued confidence in and support of UFK, as well as employees for their dedication and commitment, and shareholders for their continued support. He confirmed the Company would continuously upgrade customer service to ensure highest degrees of satisfaction, while remaining committed to improve profitability and bolster shareholders' equity.

Kuwait Projects Company (KIPCO) is Kuwait's largest private sector investment company with more than US$ 15 billion in Group assets, and a portfolio of some 55 companies with major activities in financial services, media & telecommunications, real estate, industry, management advisory, medical services and aviation throughout the Middle East and North Africa (MENA) region, as well as substantial ownership interests in the U.S. and Europe. KIPCO employs more than 12,000 people internationally and its shares are among the most actively traded on the Kuwait Stock Exchange.

KIPCO's core operating companies are United Gulf Bank (UGB), its investment banking subsidiary; Gulf Insurance Company (GIC), a regional leader in commercial and personal insurance; Burgan Bank, Kuwait's leading technology-driven commercial bank; Wataniya Telecom, the dynamic and fast-growing regional mobile telephone services provider; and Showtime, the hugely-popular digital pay-TV service spanning the Middle East and North Africa.

-Ends-

For Further Information please contact:
Ahmad Al Ajeel
Vice President
Tel: 965 244 0853
Marketing/ R&D/ PR
KIPCO
Website: www.kipcogp.com

Robin Wilson
Senior Consultant
Tel: 965 635 6969
Hill and Knowlton
E-mail: robin.wilson@hillandknowlton.com

© Press Release 2005