Rasameel General Assembly announcement

The attendance was 87% of shareholders. The AGM's agenda items were approved by the General Assembly.

The AGM has elected the new board of directors for the next three years as follows:

1.Aayan Leasing and Investment Company
2.Commercial Bank of Kuwait
3.Gulf Investment Corporation
4.Kuwait Awqaf Foundation
5.Al Madar Finance & Investment Company
6.Abdul Latif Al-Essa Group
7.Mr. Issam Zaid Al-Tawari
8.Abyaar Real Estate Development Company, 1st Stand by
9.Mr. Adel Saad Al Duaij, 2nd Stand by

The 2008 global financial crisis took its toll on all financial and non-financial sectors which negatively affected the worldwide economies and which impacted most companies' performance. The market's decline was due to depressed investment valuation, the inability to collect on past due commitments, and the rescheduling of debit receivable obligations.

Rasameel was not immune to this unprecedented economic crisis. The company's management adopted an extremely conservative approach in applying accounting standards and built conservative provisions to face this economic crisis.

For current year's result, Rasameel was able to generate profits from fee-based services (asset management, investment banking, and finance income) amounting to KD2.4m and an overall net loss of KD6.8m (Fils 22.7 per share) compared to a net income of KD2.2m in 2008 (Fils 7.2 per share). Of the reported net losses during the current year, more than 92%, amounting KD 6.3 million, were the result of the unrealized losses from depressed investments valuation and impairment provisions from principal investments, Islamic financing receivables, and other non-recurring costs. When the region's economies recover, this would have a positive impact on the company's future performance.

Despite the reported net loss in the year 2008-2009, Rasameel continues to have net assets/positive equity of KD26.7m and a book value of Fils 89 per share. The company enjoys healthy cash bank balances of KD5m, 19% of its equity. This ratio is quite high compared to other companies operating in the same sector. Rasameel is not significantly leveraged; its Islamic bank borrowings constitute only 14% of its total assets. The company has a solid financial position where its current assets covers 4 times its current liabilities and owns a consumer finance portfolio that generates positive cash flows of KD 3 million annually payable monthly.

Issam Z. Al Tawari, Rasameel's CEO, added:

'Rasameel's management has implemented a conservative approach executing its second-half of 2008,2009 strategy. In response to the regional turbulent markets, Rasameel limited its regional expansion and applied cost control policies. Due to the financial crisis, some of Rasameel's plans did not materialize resulting in the restriction of geographical expansion in Saudi Arabia. Rasameel continues to seek investment opportunities and to achieve attractive returns through the follow up of M&A opportunities as an entry point to regional expansion. Our key achievements over the past year were the launch of Rasameel Investment Bank in Dubai, UAE, being awarded the best Islamic Bank in Kuwait by The International Real Estate Finance Summit on December 2008 in the UK, and obtaining the approval to set up Rasameel in Bahrain which was kept on hold until the market conditions are stabilized.'

The following year, 2009,2010, will be a challenging year for Rasameel. We are on a constant quest for opportunities to benefit from our healthy cash balances and low leverage ratio in order to capture opportunities in M&A as well as investments in distressed assets where we can realize good values due to its solid financial positions.

Rasameel will continue its mission "to help build a Sharia'a compliant regional capital market" and be distinguished from other regional investment companies focusing on securitization as a core line of business with a wider mandate in investment banking. With the ongoing GCC capital markets regulation reform, securitization value proposition will increase in both the private and government sector.

Where others see complication, we see opportunity; we are committed to deliver value to our clients and stakeholders. We are convinced that Rasameel will emerge unscarred from this financial crisis.