Manama, Bahrain, 6 November 2006: Gulf Finance House (GFH) today announced that it has successfully exited Gulf Atlantic FZ LLC (France) - GAF, a fund established and managed by GFH.  GFH said that Qatar Islamic Bank (QIB) has acquired the four properties owned by GAF.

Commenting on the exit, Mr. Peter Panayiotou, Deputy Chief Executive Officer and Chief Investment Officer, GFH, said: "We are very pleased that our GAF fund has yielded a return averaging 47.5% over three years for our private clients, which exceeds our target and represents an excellent return for them.  The exit was timed to meet the investment term set out in the private placement memorandum. Our exit from GAF closely follows the successful sale of the Gulf Atlantic Real Estate UK portfolio to Deutsche Bank earlier this year."

Currently, GFH is also co-asset manager for the 660 million Gulf German Residences fund, which was set-up in March 2006.

"Going forward, as articulated in the Bank's business strategy, GFH will continue to originate and invest in real estate and infrastructure opportunities within Europe with the objective of achieving attractive risk-adjusted returns for its clients," Mr. Panayiotou added.

Launched in 2003, GAF's investment objective was to provide GFH clients with an opportunity to earn a consistent quarterly cash dividend.  Since inception, GAF has successfully paid out a consistent 10% cash dividend.  The Fund acquired the first property in Saint-Ouen in May 2003 and the three remaining properties in Velizy, Gentilly and Ivry between June and December 2003.  Financing was provided by Euro Hypo, Societe Generale and Credit Agricole.

Commenting on the purchase of the four properties from GAF, Professor Abdul Latif Al-Meer, Head of Business Group, QIB, said: "As part of our growth strategy and our focus on ensuring best returns for our clients, we are looking at significantly enhancing our portfolio of real estate investment in the European market.  We are extremely positive on the French property market and are confident of optimal returns from this investment in the longer term."

GAF's portfolio consisted of four properties concentrated in the Paris region of France, which include a high-end building in Saint-Ouen designed by Viguier and let to Alstom Transport, an office complex in Velizy let to Peugeot, a multi-let office building in Ivry where France Telecom is the main tenant and a mixed-use building in Gentilly multi-let with SFR Cegetel as the occupants.

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For further information contact:
Jayakrishnan B/Sheerin Sinawy
 Percept Profile Gulf(PR)
Dubai, United Arab Emirates
P.O. Box No: 74245
Tel: 00971 4 3446373
Fax: 00971 4 3429158
Email: info@perceptprofilegulf.com

© Press Release 2006