Arab Banking Corporation announces the sale of its shares in International Bank of Asia

ABC and Fubon Financial Holding & Co., Limited ("Fubon"), a leading group in Taiwan, entered on the 8th of September 2003 into an irrevocable Share Sale & Purchase Undertaking. The effect of that irrevocable agreement is that Fubon (or a wholly-owned subsidiary incorporated specifically for the purposes of the sale & purchase transaction) must, subject to below, make an offer for the entire issued ordinary share capital of IBA and ABC must accept that offer.

However, the making of the offer and the proposed acquisition is subject to certain pre-conditions including, inter alia, the approval of the Hong Kong Monetary Authority, the Hong Kong Securities and Futures Commission and the Ministry of Economic Affairs in Taiwan.

The sale and purchase undertaking described above relates to 644,688,000 shares at a price of HK$3.68 per share in IBA (representing 55 per cent. of the entire issued ordinary share capital of IBA) held by ABC. Once the offer is made by Fubon and accepted by ABC, ABC will cease to be the parent or holding company of a Hong Kong bank whose shares are listed on The Stock Exchange of Hong Kong Limited and which is an authorised institution (and approved by the Hong Kong Monetary Authority) pursuant to section 15 of the Banking Ordinance (Chapter 155, Laws of Hong Kong).

Mr. Ghazi Abdul-Jawad, President and Chief Executive, said, "The decision to divest our interest in IBA is in line with ABC's strategic vision of focusing its core business franchise in the Arab World. While IBA had been a profitable investment, the opportunity for business synergies within the Group's long-term objectives was limited. The proceeds of this sale will be utilised to augment ABC's capital resources and will be available to support future growth in our core Arab World businesses. ABC shall continue to service its Asian customers from its Singapore Representative Office and from its Bahrain Head Office."