First Islamic announces 10 per cent increase in net profit for 2002

The Board of Directors has recommended a dividend payment of $16.9 million, representing a return of 15 percent on the Bank's paid-in capital.

The Bank generated a return on average total equity of 23.4 percent, with total equity increasing to $162.9 million, after proposed dividend.

During 2002, First Islamic completed its first European real estate transaction and its first international aviation transaction while continuing to build on its well-established US direct investment and real estate businesses.

In June 2002, First Islamic arranged the acquisition of a 90 percent ownership stake in Smart Document Solutions, LLC, a leading provider of medical records release of information (ROI) services in the United States, for a total transaction value of approximately $100.0 million.

During 2002, First Islamic completed two real estate transactions in the US assisted living sector in the form of joint ventures with Sunrise Assisted Living, Inc., the oldest and largest provider of assisted living services in the United States. The first transaction was completed in March 2002 for a total transaction value of $203.4 million, and the second transaction was completed in November 2002 for a total transaction value of $222.4 million.

In November 2002, the Bank completed its first real estate transaction in Europe when it entered into a joint venture with Lend Lease Real Estate Investments GmbH, a part of the Lend Lease Group, one of the world's largest real estate companies.

The joint venture acquired lease interests in a portfolio of industrial distribution facilities located throughout Germany.

In October 2002, First Islamic entered into a joint venture with Montrose & Company International, LLC, an affiliate of Bank of America N.A. The joint venture is acquiring lease interests in 21 aircraft leased to British Airways, Air Canada and Brit Air (a wholly owned subsidiary of Air France), for a total transaction value of $149.6 million.

Mohammed Abdulaziz Al Jomaih, the Bank's Chairman, said: "We appreciate the confidence that the Government of Bahrain, the Bahrain Monetary Agency and our valued clients and business partners have shown in First Islamic since its inception. We are indebted to them for their continuing support and encouragement."

Abdulaziz Hamad Al Jomaih, Vice Chairman of First Islamic, said: "In the context of a challenging economic, geopolitical and market environment, First Islamic's 2002 performance is a testament to the strength, flexibility and sustainability of our business model."

Atif A. Abdulmalik, the Bank's Chief Executive Officer, said: "The upcoming year will be challenging, and an exciting opportunity for growth. Our aim is to introduce additional asset classes and extend our direct investment line of business into Europe."

First Islamic's mission is to provide innovative, Shari'ah compliant investment opportunities to institutional and individual investors internationally. First Islamic Investment Bank E.C. is a Bahrain-based investment bank with a paid-in share capital of US$112.5 million and over 80 shareholders.