IIB makes its entry in Tunisia through an IPO

The IPO opened on the Bourse de Tunis (Tunis Stock Exchange) with share price of TD13 (Nominal Value TD10) which rose to TD 14.37 on the same day, representing a 10% increase on the opening price.

Commenting on the announcement, Mr. Aabed Al-Zeera, Chief Executive Officer of IIB, said, "Artes has strong business and operating fundamentals and we strongly believe that the stock will perform well and pay attractive dividends given the financial strength of Artes. Prior to making this investment, we completed a detailed assessment to ensure that we are selecting the right investment opportunity for our investors. Artes is our first Pre-IPO investment and further enhances diversification opportunities for our sophisticated investor base."

IIB and its investors acquired an equity stake of 13.19% through a fund in ARTES. It is IIB's first investment both in Tunisia and in the car distribution sector.

Mr. Al Zeera further commented, "The Artes IPO is the largest IPO on the Tunis Stock Exchange in the last 10 years. Artes' profit in 2006 was $16m and it is expected to report profits in excess of $25m for 2007. Soon after the IPO, Artes management proposes to declare a dividend of 80% of its 2007 profits to its shareholders."

The response to the pre-IPO placement from investors in Tunisia has been overwhelming and the offering, which was open to investors for subscription between March 17 and March 28, 2008, was over-subscribed more than ten times

"We consider ourselves as strategic partners to Artes and not a speculative investor. Our strategy for Artes is long term. The company has a sound growth plan. Moreover, market conditions in Tunisia are getting more and more attractive as the country is opening up to foreign investors. The ongoing mega projects in particular in real estate are believed to spur economic growth and will have a positive impact on the automotive sector. Renault has a long history in Tunisia and has been one of the most successful market brands there. We are pleased to have entered the Tunisian market and hope to announce further investments in the near future," commented Mohamed Hadi Mejai, Executive Director, Investment and Business Development.