International Investment Bank's net income for 9 months is $12.0m

Net Income for the period was $12.0m, a decrease of 14.0% compared to $14.0m earned in the first 9 months of 2007. The result reflects the cautious approach to investment endorsed by the Board in the wake of the current uncertainties in the global financial markets.

Total Income increased by 8.2% to $26.9m in the first 9 months of 2008, mainly from investment banking fees that increased by $2.4m or 12.3% to $21.5m, generated from the structuring, underwriting and placement of new investments. In the same period last year, the Bank registered a non-recurring capital gain of $1.4m on the sale of an investment property in Bahrain.

Total Expenses increased by $4.0m in 2008 to $14.9m, arising from staff and transaction costs from its growing business activities.

Profitability Ratios for the nine-month period of 2008 included annualized returns on Paid up Nominal Capital (ROC) of 14.6% and on Average Equity (ROE) of 7.4%.

Capital Adequacy at 30 September 2008 of 104% is eight times greater than the minimum requirement of 12% by the Central Bank of Bahrain. This demonstrates a strong and prudent approach by the Bank in respect of risk management.

Commenting on the Bank's results, His Excellency Mr. Saeed Abdul Jalil Mohammed Al Fahim, Chairman of IIB, said:

performance in 2008 has been satisfactory, bearing in mind the current global financial turmoil gripping the markets. The Board has adopted a conservative approach to risk, and continues to be very cautious and exacting in selecting investments for its clients. IIB has no exposure to sub-prime or any other 'oxic'assets. With no borrowings on its balance sheet, the Bank has no liquidity concerns and places its surplus funds with several highly rated banks in the GCC region."

Mr. Aabed Al-Zeera, CEO and a Board Member of the Bank, commented:

"During the first nine months of 2008, IIB completed the placement of a real estate development project in Abu Dhabi and a private equity investment in Amrahbank, a commercial bank located in Azerbaijan, that we intend to expand and convert its operations to comply with the Shari'ah. New offerings have included the structuring and placement of an equity stake in a leading vehicle distributor, ARTES, located in Tunisia, being IIB's first investment both in Tunisia and in the car distribution sector. The subsequent IPO of ARTES was the largest on the Tunis Stock Exchange in the last 10 years and was over-subscribed more than ten times. The Bank has also structured and mainly placed an investment in a green field sugar plant to be constructed in the Kingdom of Bahrain."

Mr. Al Zeera further added that: "The pipeline of deals for investment by IIB and its clients include a mortgage finance company and a low-middle income housing project in the Kingdom of Saudi Arabia, a real estate fund in North Africa and a real estate development project in Eastern Europe. These transactions will be offered to investors during the fourth quarter of 2008 and first quarter of 2009. However, we would like to assure our shareholders and investors that the Bank's priority for the coming quarters is capital protection rather than income generation, and therefore, IIB will exercise a higher level of caution and vigilance in sourcing, structuring and placing investment opportunities with investors. Only those that meet a longer term test of stability will be offered to our investors."