Bahrain, 4th March 2007 - As a party to the selling consortium controlling 51% of National Mobile Telecommunication Company K.S.C. (NMTC), UGB has entered into an agreement with QTEL International Investments L.L.C. to sell, for an amount of US$ 157 million, its shareholding in the company as well as UGB's 9% stakes in each of NMTC's  Iraqi and Algerian operations. The transaction, upon its successful completion including necessary regulatory and other related approvals and release of escrow, will result in a gain to UGB of about US$ 96 million which will probably be largely recognized in the first quarter of 2007. (UGB's profits for the twelve months of 2006 were US$ 101.5 million).

UGB Managing Director and KIPCO Asset Management Company (KAMCO) Chairman, Masaud Hayat, commenting on the sale, stated: "This was an opportune time to exit from these investments at an attractive price. In addition to organic growth capital requirements of our universal banking network, we are evaluating a number of new investment opportunities into which these proceeds will be partially redeployed."  UGB's Chief Executive Officer, William Khouri, continued:  "With this excellent boost to 2007 net income we are assured of achieving a fifth year of historic earnings. UGB's existing high quality and diversified portfolio still holds a significant upside which we hope to continue to realize over the coming years," he concluded.

-Ends-

Notes to editors
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment/asset management companies and commercial banks. Its proprietary investments include assets in real estate, telecommunications, private equity, structured products and quoted securities. At year end 2006, assets under management exceeded US$ 6.5 billion. UGB's core subsidiaries and associates include: Algeria Gulf Bank, Al-Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Tunis International Bank, United Gulf Bank Securities Company, United Cable Company, United Industries Company, United Real Estate Company, United Medical Services Company, United Gulf Financial Services Company, MAC United Gulf, Syria Gulf Bank and United Warehousing & Cooling. UGB and its subsidiary KAMCO have a proven track record of successful investment banking activities including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement.

KIPCO is an US$ 18 billion enterprise with major activities in financial services, media and telecommunications and a variety of other business sectors across the Middle East and North Africa. The group has substantial ownership interests in a portfolio of some 54 companies operating throughout the region and internationally.

For further information please contact:
William Khouri,
Chief Executive Officer,
United Gulf Bank 
+973 17 533233, www.ugbbah.com

© Press Release 2007