Investcorp announces second edition of its Share Liquidity Program

The Investcorp Share Liquidity Program was launched in March 2005. The second edition of this initiative started on September 18, 2005 and is expected to end on October 9, 2005.

Investcorp's Chief Financial Officer, Rishi Kapoor, explained that the Program had two parts: "First, there is an objective methodology for establishing an indicative fair value of Investcorp's ordinary shares. Twice each year this objective methodology is applied to calculate an indicative fair value for Investcorp shares. It is always based on Investcorp's previous 12-month actual audited performance data. These analyses are widely publicly communicated so that interested parties can use them as appropriate in their decisions to buy or sell Investcorp shares.

"Second, this fair value is used for facilitating, in a limited manner, trades between willing buyers and sellers of Investcorp shares through discretionary portfolio accounts. These are managed by an independent broker, Securities & Investment Company B.S.C.(c) (SICO), on behalf of Investcorp's Treasury and other strategic shareholders. Twice a year, following publication of the fair value calculation described above, SICO discloses the aggregate purchase and sale orders received on behalf of the two portfolio accounts. These are forwarded for execution to the Bahrain Stock Exchange through the special (whole or none) market."

Investcorp Chief Operating Officer, Gary Long, pointed out that all existing and new third party external shareholders, can benefit significantly from the Share Liquidity Program: "This initiative provides a basis for all shareholders to perform a more appropriate, market-based assessment of the intrinsic value of their holdings and benefit from a well-established liquidity mechanism for them to realize this fair value."

On October 9, 2005, both existing and prospective shareholders will be able to participate in the second trading process, either through Investcorp's nominated broker, SICO, or any other recognized broker on the Bahrain Stock Exchange. Based on the current independent valuation, the two managed portfolios will be willing to buy, as well as sell, Investcorp shares at a price of US$ 2,360 per share.

The managed portfolios have made a long-term commitment to this twice-yearly valuation and associated trading process. The third edition of the Share Liquidity Program will be conducted in March 2006.