Solidarity's authorized capital to increase to USD500 million

The Bahrain Based Takaful company has received a capital injection of US $200 million increasing their authorized capital from US $300 million to US $500 million. The capital increase was approved at the company's Annual General Meeting held in the Kingdom of Bahrain.

Solidarity's senior management team further approved a capital increase of US $175 million to its existing US $100 million paid up capital in which $75 million from Right Issues, and an additional $50 million from private placement and $50 million from IPO. Moreover, Solidarity Shares will be listed in Bahrain Stock Exchange and other GCC Stock Markets. Given the rising demand for Takaful products around the world, Solidarity's capital injection will fuel the company's growth and enable their range of Takaful products to be made available in previously untapped markets.

"Solidarity has had an extremely successful year in terms of our strategic growth and regional expansion. The management recognizes the strides we have made over the last year which is reflected in the paid up capital increase,"

said Khalid Al Sowaidi, Chairman, Solidarity.

"Given the current upward trend for Takaful products, the current capital injection will enable us to offer our range of diverse, quality Sharia'h compliant products to new markets in the region and beyond," he added.

Khalid Abdulla Janahi, Chairman of the Executive Committee, Solidarity commented on the capital increase, "Last year Solidarity entered into agreements allowing us to market our Sharia'h Compliant products in the Kingdom of Bahrain, the Kingdom of Saudi Arabia and Qatar. Through the formation of strategic partnerships, we have increased our regional presence significantly in 2005. We look forward to enjoying a similar success this year and achieving our objectives for growth and expansion which will include in addition to our existing markets Oman, Malaysia, UAE, Lebanon, Kuwait and Egypt."

"As the world warms to this sound Takaful (Islamic insurance) vessel, there is going to be a continuing need to accommodate the diverse individual needs of clients by providing a comprehensive range of products in accordance with Islamic Sharia'h principles and to generate a satisfactory rate of return for shareholders and policyholders alike," added Janahi.

Solidarity will offer its stocks through the General Public Offering and will be listed in the Bahrain Stock Exchange. The company, on the other hand, has plans to offer its shares on other regional stock exchange in the coming months. With its current capital boost and a successful year behind them, Solidarity is poised to augment its market base rapidly in the coming months.

The board of directors announced the appointment of Mr. Sameer Al Wazzan as chief executive officer, CEO for the company, and GM for the General takaful division; effective March 13/2006.