Cairo, May 23, 2005--Arab African International Bank (AAIB) announced today its acquisition of 100% of Misr America International Bank's shares for L.E 239.5 million pursuant to the complete merger expected to be finalized at a later stage. This comes as part of AAIB's strategic plan to expand its banking operations and strengthen its presence in the local market.

Commenting on the deal Dr. Fahed Al Rashed, Chairman of Arab African International Bank declared : " The decision to acquire was made following a thorough and focused study on part of the bank's Board of Directors and management following which the Board resolved to acquire as part of AAIB's strategic plan to expand its banking operations and strengthen its presence in the local market...In principle, growth was to be achieved through one of two scenarios: either through organic growth by gradually establishing new branches or through acquisition... we opted for the acquisition to capitalize on the accelerated growth in the Egyptian market". In this context, Dr Al Rashed expressed his appreciation for local authorities, mainly Dr. Farouk El Okda - Governor of the Central Bank of Egypt and Dr. Mahmoud Mohieldin - Minister of Investment for their support in realizing this deal."

He also added that " the Board of Directors perceives the acquisition as the natural outcome of AAIB's commitment to aggressive growth and its Board's determination to better serve its clients and increase value for its shareholders...it reflects our ability to react to change in the global, regional and local financial industry. Besides, the current legal and regulatory developments in Egypt, encourage such deals to take place."

AAIB witnessed significant growth in recent periods evidenced by several performance indicators. In 2004, AAIB achieved an increase in the clients' deposits and loans portfolios by 74.5% and 70% respectively compared to 2003. This in turn led to an increase in the return on the dollar based equity to 17 % in 2004 compared to 11% in 2003. Moreover, the banks' total assets increased by 53% in 2004 to reach around US$ 1.8 billion. Worth noting, the bank's total assets at the end of April 2005 amounted to US $ 2.1 billion, equivalent to LE 12.2 billion.

Hassan Abdalla, Vice Chairman & Managing Director of AAIB commented saying "This strategic move is not an end in itself .. it is more of a means to achieve economies of scale, increase efficiency and enhance competitiveness. We are proud of this step, and we realize the scope of responsibilities and challenges that follow to reach the kind of success we aspire".

As part of its general policies and core values, AAIB perceives human resources as one of the most valuable assets that will be nurtured and developed throughout the integration process in both merging banks. As such, Abdalla commented "AAIB is committed to assist all employees adjust and understand that this is a viable opportunity for positive change that will provide a true chance for development."

The result of such an acquisition translates into a significant leap for AAIB in multiple dimensions, some of them being the increase in the number of branches, client base, as well as the bank's competitiveness.

"AAIB goes beyond being a profit-making institution to include a moral mission towards the local community by pursuing viable corporate citizenship projects covering health care, education and culture," concluded Abdalla.

Worth mentioning, the auditing and endorsement of the evaluation process have been implemented by a committee, originated for this specific purpose by a decree No. 1684 for the year 2004 issued by the Prime Minister and formerly initiated by the Minister of Investment. The committee is comprised of representatives from the Ministry of Finance, Central Bank of Egypt (CBE), Central Auditing Organization (CAO), and the Capital Market Authority (CMA), as well as accounting and auditing specialists. The committee revised and endorsed the evaluation of the stocks selling price, prepared by the authorized seller as of 10/4/2005.

-Ends-

About Arab African International Bank:
Established in 1964 by special law as the first Arab multinational bank in Egypt, Arab African International Bank (AAIB) was established as a venture between the Central Bank of Egypt (49.37 %), Kuwait Investment Authority (49,37%) and others ( 1.26 %). AAIB has 14 branches in Egypt and 3 regional branches (2 in Abu Dhabi and Dubai and 1 in Beirut). AAIB has been reputedly known as one of the most distinguished commercial and investment banks in the region. While sustaining its core competence as a corporate bank, AAIB is making breakthrough strides in retail banking through expanding its innovative product range and geographic presence. The bank's leadership has dedicated its interest to introduce and enforce new standards and professional benchmarks to safeguard quality performance and maintain its leading position. AAIB is sponsoring many educational, and cultural projects as part of its social responsibility scheme.

About Misr America International Bank:
Established in 1977 as one of the first foreign joint venture banks, the bank was co-founded by Bank of America, New York. Today, its shareholders are; Misr Insurance Company (50 %), Banque Du Caire (32.8 %), Industrial Development Bank (17%) and S.A. Company for Investment -Luxembourg (0.2%). The bank has a total of 9 branches in Egypt.

© Press Release 2005