MANAMA, 15 January 2007

Ithmaar Bank B.S.C announced today that the Company has recently completed an agreement with CITIC International Financial Holdings Limited, (Hong Kong), and two other overseas investors, pursuant to which the three overseas investors will invest U.S $ 180 million in exchange for a combined 60% stake in CITIC International Assets Management Limited, of which Ithmaar Bank will own 20%.

CIAM was established in 2002 to specialize in distressed asset management, in particular to manage and recover a portfolio of non-performing loans as part of CIFH’s reorganization in 2002. As part of its efforts to explore new revenue streams leveraging on cash flows generated from the recovered assets, CIAM has also built up a team of seasoned investment professionals with experience in managing direct investment projects in Mainland China. Its current portfolio of direct investments includes real estate, high-tech, health, retail and other industrial projects.

"The unique mix of investors will enable CIAM to capitalize on their respective know-how in direct investments and broaden its access to the investors’ networks in the Middle East, Japan and other parts of Asia. Meanwhile, the strategic investment in CIAM will also offer a unique opportunity for the overseas investors to benefit from the deep knowledge and expertise of CIAM in direct investments in China", said Mr. Khalid Abdulla-Janahi, Chairman of Ithmaar Bank.

Ithmaar Bank B.S.C. is a 22-year-old bank licensed by the Central Bank of Bahrain and listed on the Bahrain Stock Exchange [Stock quote: ITHMR]. Ithmaar Bank, with a paid- up capital of US$360 million, is a full service investment bank with operations spanning the Middle East and North Africa (MENA) region, as well as Asia and Europe. The Bank’s business includes private equity, asset management, project financing, advisory business (capital market, mergers & acquisitions and project advisory) and equity underwriting.

Ithmaar Bank’s flagship companies include Bahrain-based Shamil Bank of Bahrain B.S.C., a listed full service Islamic commercial bank; Solidarity Company B.S.C. (Closed), an Islamic insurance company based in Bahrain; First Leasing Bank B.S.C.(Closed), a wholesale lease finance company; Switzerland-based Faisal Private Bank (Switzerland) S.A. and Pakistan-based Faysal Bank Limited.