First Islamic changes name to Arcapita

Notes and media contacts

For further information, please contact:
Laila Danesh, Financial Dynamics
Tel: +(973) 17 537072
Mob: + (973) 39051111

ABOUT ARCAPITA (previously known as First Islamic Investment Bank and Crescent Capital Investments)

Headquartered in Bahrain with offices in Atlanta and London, Arcapita's three principal lines of business are corporate investment, real estate and asset-based investment. To date, the bank has completed 35 transactions with a total value of over $7.5 billion and has an equity capital base in excess of $300 million. Arcapita's mission is to provide innovative and distinctive Shari'ah compliant investment opportunities that generate superior risk-adjusted returns.

2004 Highlights

Corporate Investments

The bank has completed corporate investments in the healthcare, aerospace, consumer, retail, industrial and technology sectors.

Corporate investment transactions completed during the year include Loehmann's Holding Inc., a leading US-based off-price specialty retailer of upscale in-season brand name merchandise; Vogica, the largest direct retailer of kitchens and bathrooms in France; and Church's Chicken, the third largest operator and franchiser of chicken Quick Service Restaurants in the world. In addition, in April 2004, First Islamic was selected as the winning bidder in an auction to acquire TLC Health Care Services, Inc., the second largest provider of home nursing services in the United States.

Real Estate Investments

The bank's real estate portfolio consists of transactions in the industrial/warehousing, multifamily, assisted living, self-storage, developmental and lifestyle residential sectors.

In the real estate line of business, during 2004 First Islamic formed a second joint venture with Shurgard Self Storage SCA to develop up to 36 self-storage facilities in the UK, France, the Netherlands, Denmark, Sweden and Germany. The bank also established Crescent Euro Industrial Portfolio, in joint ventures with Heitman International and UBS, to invest in quality industrial and distribution assets on a pan-European basis. In September 2004, First Islamic formed Victory Heights Golf and Residential Development Company LLC, a joint venture with Dubai Sports City LLC, to develop approximately 800 upscale single family units, an 18-hole championship golf course, and other amenities and facilities, as part of the Dubailand project. Victory Heights represented the bank's first investment transaction in the Middle East. In October 2004, First Islamic formed a joint venture with Bahrain International Golf Course Company to develop a themed residential community around the expanded Riffa Golf Course in Bahrain. The project is expected to consist of some residential 500 units with access to wide-ranging leisure facilities and amenities.

Asset-Based Investments

The bank has completed asset-based transactions in the renewable energy, aerospace, and utilities sectors.

In February 2004, the bank acquired a stake in a portfolio of wind farms in the United Kingdom, in partnership with RWE npower, a leading integrated UK energy business, and another private equity investors. The total transaction value was £410 million, with each party holding a 33.3% interest in the portfolio. The completed portfolio is expected to comprise approximately 20 wind farms with over 430 MW capacity and is expected to become the largest wind farm portfolio in the United Kingdom.. In November 2004, First Islamic completed the acquisition of South Staffordshire Plc, a UK-based Water-only-Company, which was quoted on the London Stock Exchange, for a total value of approximately £245 million. This Pound Sterling denominated transaction was our first European public to private transaction and is the largest equity placement we have made in our history.