Kuwait City, February 13, 2005 -- Gulf Insurance Company (GIC), part of the Kuwait Projects Company (KIPCO) Group, will acquire a 54% stake in Egypt's Arab Misr Insurance Group (AMIG) from the Arab Insurance Group (Arig), which is divesting its holdings in AMIG.

The sale, subject to approval by the Egyptian regulatory authorities, will see GIC acquire 324,000 shares in AMIG valued at KD 1.52 million (US$ 5.19 million). Arig will continue its participation in AMIG to facilitate a smooth transition to the new owners.

Khalid Saoud Al Hasan, GIC managing director and chief executive officer said: "Our investment in AMIG is part of a corporate strategy for GIC to expand its regional operations. AMIG provides a perfect platform for realising this objective in the growing Egyptian market.

"With our strong credentials as part of the KIPCO Group and ambitious growth objectives, we are sure AMIG will continue the remarkable progress achieved in recent years and be one of the most efficient and reputed companies in the Egyptian market."

Udo Krueger, Arig's chief executive officer said: "We are pleased to conclude this transaction with GIC, which has been a long-standing and valued business partner for Arig.

GIC has achieved steady growth both in revenues and market share to maintain its leading position in the Kuwaiti insurance market. The company pursues a strategy of regional expansion to attain similar leadership in the Middle East market, and operates in Saudi Arabia and Lebanon with subsidiaries Saudi Pearl Insurance Company and Fajr Al-Gulf Insurance & Reinsurance Company.

KIPCO is Kuwait's largest private sector company with more than US$ 10 billion under management or control, and a portfolio of some 70 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 10,000 people internationally and its shares are the most actively traded on the Kuwait Stock Exchange.

-Ends- 

For Further Information:
Khalid Saoud Al Hassan        
Managing Director& CEO          
+965 244 1539
                                                 
Gulf Insurance Company  
Robin Wilson                              
Senior Consultant                            
+965 635 6969
                                                  
Hill & Knowlton           
robin.wilson@hillandknowlton.com

© Press Release 2005