BankMuscat GDRs to debut on the LSE today

Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman, BankMuscat is to mark the listing of the Bank's GDR's on the LSE by formally opening the day's trading on the Exchange. With this the Bank will become the first company from the Sultanate and the first Bank from across the Gulf region to be listed on the London Stock Exchange. The Bank's maiden Global Depositary Receipts ("GDR") issue, which closed last week, received an overwhelming response from the global financial community with the US$ 149 million GDR offering being multiple times oversubscribed.

Citigroup, global co-ordinator and sole bookrunner of the issue that comprised 6,253,423 newly issued ordinary shares in the form of GDRs, priced the GDRs at US$ 23.75 (RO 9.144) per share. BankMuscat, it may be recalled, has granted the managers an option to purchase up to 625,342 additional shares to cover over-allotments. Each GDR represents one ordinary share of BankMuscat, which trade on the Muscat Securities Market.

Speaking on the eve on the listing ceremony, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman, BankMuscat said: "This indeed is a historic moment both for the Bank and the Sultanate as a whole. We are indeed proud to be the first Omani organization to represent the Sultanate on the London Stock Exchange. Our decision to list on the LSE reflects our desire to attract a broad institutional investor base. BankMuscat will use this new capital to finance domestic growth and consolidation of our international expansion."

The GDR issue, which represents 10% of the Bank's existing paid up share capital, has resulted in the Bank's paid up share capital increasing from the existing RO 69 million to RO 76 million.

BankMuscat, with a market share of approximately 37% by total loans and 36% by total assets as of 30 June 2005, is the leading bank in the Sultanate of Oman with a leading presence in retail banking, corporate banking, treasury and investment banking, asset management and private banking in the Sultanate of Oman. In 2004, BankMuscat generated net profit of U.S.$88.6 million and as of 30 June 2005, had shareholders' equity of U.S.$527.5 million.

This announcement does not constitute an offer of securities for sale in the United States. The securities referenced in this announcement may not be offered or sold in the United States or to or for the benefit of US persons (as such term is defined in Regulation S pursuant to the U.S. Securities Act of 1933, as amended (Securities Act)) unless they are registered pursuant to the Securities Act or pursuant to an available exemption therefrom. The issuer of the securities has not registered, and does not intend to register, any of these securities and does not intend to conduct a public offering of securities in the United States.