KAMCO and Burgan Bank launch public offering of shares in new Kuwait National Airlines Company KSC

This was stated during the press conference held today for the launch of the public offering of shares in Kuwait National Airlines Company where KAMCO chairman Masaud Hayat announced the appointment of KAMCO as Issue Manager and Burgan Bank as the sole Selling Agent.

KAMCO's general manager, Mr. Saudoun Al-Ali said: "Kuwait's public and private commercial civil aviation sectors are considered to be amongst the leaders in the Middle East region. For over fifty years, the Kuwaiti Government has successfully kept up with the latest developments in the aviation industry, from the provision of modern infrastructure to the application of the latest international rules and regulations governing this important industry. The industry's development has coincided with the development of Kuwait over the past years under the leadership
of the late Amir of Kuwait, His Highness Sheikh Jaber Al Ahmed Al Jaber Al Sabah who recently passed away.

Al-Ali added that with the apparent positive developments in the economic conditions in Kuwait and the region, and as part of Kuwait's plans for enhanced future economic development and in order to increase the role of the private sector in Kuwait's development, the government of Kuwait, by decree from the Council of Ministers, approved the granting of three commercial licenses for new Kuwaiti airlines to private sector investors. These licenses were for limited service passenger transport, cargo transport and the license for passenger transport with full services, the license which was granted to Kuwait National Airlines Company.

Al-Ali added that the participation of the private sector in this important industry will help push the economic development in Kuwait, making Kuwait an important commercial and tourist hub on the World map in the future. It is expected for the establishment of new airlines in Kuwait to reflect positively on the Kuwaiti economy, creating new jobs for Kuwaiti citizens and providing increased competition that is expected to enhance the public's choices and welfare.

This offering is expected to attract a variety of investors from Kuwait's society, given the expectations for positive economic growth in Kuwait and the region which in turn is anticipated to increase the success and growth chances of the aviation industry in Kuwait and the region.

Al-Ali indicated that the company's capital has been set at KD 50 million, distributed over 500 million shares at a par value of 100 Kuwaiti Fils per share. He disclosed that the founders have already subscribed in 30% of the company's
capital and appointed Burgan Bank as Selling Agent and KAMCO as Issue Manager. It is worth mentioning that the company's founders have significant and varied participation in the development of the private sector in Kuwait.

Al-Ali expect that the company will apply to list its shares on the Kuwait Stock Exchange after the passing of one year from its establishment and the issuing of its first financial statements, as stipulated by the commercial company laws in Kuwait and after obtaining all necessary approvals.

Jonathan David Lyon, Chief Executive Officer of Burgan Bank, the Sole Selling Agent stated: "Burgan Bank and all its branches is pleased to accept applications from interested Kuwaiti investors in the shares of Kuwait National Airlines Company during the subscription period from 22 January 2006 and until closing on 16 February 2006".

Lyon also indicated that the minimum subscription is 1,000 shares. Investors will be able to apply for the minimum and multiples of it up to a maximum of 100,000 shares per subscriber.

Lyon also explained that payment for the subscription can be made by the applicant (or Head of Household) or any first degree relative (i.e. Parents of the applicant, sons, daughters, wife or husband). As for company applications, payment can only be made from accounts held by the applicant company.

The application form contains certain requirements from subscribers that includes a clear indication of the Burgan Bank branch in which they are applying in, the date of the application and the capacity of the applicant. In case of applications with
more than one subscriber, the name of the applicant in which the allocation slip will be provided to is the head of the household with the remaining first degree family members and details below. In addition, the method of payment should be stated, whether by transfer from an existing Burgan Bank account, transfer from other Kuwaiti banks or by checque. In case of merging the shares under one of the subscriber names, the appropriate box should be ticked and filled up with the required details. Merging the shares will be in accordance to the applicable Kuwait Stock Exchange rules and regulations.