Press Release

June 18, 2007

Gulf Capital announces earnings of AED53.7 Million and five major acquisitions in its first year of operation

Gulf Capital, one of the largest and most active private equity firms in the Middle East, today announced sales of AED472.6 million and a net profit of AED53.7 million for its first year of operation, ended on March 31st, 2007. Earnings per share amounted to AED 0.44, while total equity stood at AED1,307.3 million and total assets at AED1,748.8 million.

Outlining the progress made by the Company, Mr. Hareb Al Darmaki, Chairman of Gulf Capital, said: “In the space of twelve months, Gulf Capital has launched its operations, built a robust infrastructure, assembled a seasoned team of investment professionals, secured five major acquisitions and rapidly emerged as one of the most active private equity firms in the Middle East.”

“Since our first day of inception, Gulf Capital had one clear goal: to emerge as the largest and most sophisticated alternative investment firm in the Middle East. Our 282 shareholders-partners, directors and investment professionals have all joined us in our efforts to build a best-in-class institution that shines by regional and international standards.”

By focusing on acquiring superior assets with excellent upside potential at fair valuations, Gulf Capital has closed five major transactions in its first year of operation. The value of these five investments is worth more than AED650 million – representing 54% of the Firm’s capital –and include stakes in the market leaders in several high-growth sectors in the GCC.

Acquisitions completed to date include Metito Holding Ltd. (Metito), the largest privately held water engineering and utility company in the Middle East and North Africa; Maritime Industrial Services Co. Ltd. Inc. (MIS), a fully integrated onshore and offshore engineering, procurement, fabrication, construction and shipyard service provider; Itsalat International (i2), the largest multi-brand distributor of mobile handsets in the Middle Eastern and African regions, and Gulf Marine Services (GMS), the leading jack-up barge and offshore support vessel operating company in the UAE.

Dr. Karim El Solh, Chief Executive Officer of Gulf Capital said: “As a partner in growth we are committed to delivering superior risk-adjusted returns to our clients and shareholders by unlocking the full potential of these companies. Looking back at the string of acquisitions Gulf Capital has completed in the last year, we are particularly proud of the quality and the diversified composition of our portfolio. We have acquired significant stakes in the market leaders in the most promising sectors in the Gulf region: Telecommunication, Water and Wastewater, Oil & Gas and Construction. This is a wellbalanced portfolio of dominant and profitable companies with leading market share (either No. 1 or 2 in their field) and strong exit potential (via IPOs or trade sales). The investment criteria we set out for Gulf Capital at inception seemed very stringent but we are pleased with our progress to date in meeting these criteria.”

The strength of Gulf Capital stems from its ability to capitalize on the comprehensive international know-how and strong regional insight of its seasoned Investment and post acquisition teams, coupled with the first-hand experience of its Industry Advisory Board members who in their own rights are industry authorities. “Our Industry advisory board comprises some of the most illustrious and knowledgeable industry experts who advise us on particular transactions and assist us in managing, restructuring and growing our portfolio companies,” Dr. El Solh continued.

One of the many highlights that Gulf Capital has experienced in its first year of operation is the successful flotation of MIS on the Oslo Main Bourse in Norway, the first Gulf based company to go public in Norway. “With the successful MIS floatation and other anticipated exits in the year to come, we have proven our ability not only to source but also to grow and exit investments successfully and profitably. Gulf Capital is firmly established today as one of the largest and most dynamic private equity firms in the Middle East,” concluded Dr. El Solh.