BMB Investment Bank semi annual operating income at USD8.5 million

After accounting for taxes and other items, net income for the first six months stood at
US $3.8 million.

Total shareholder equity increased by 23% from US $27.2 million at the end of 2005 to US $33.6 million at the end of June 2006. This continued growth in capital is due to sustained profitability as well as an increase in the fair value of the Bank's assets, resulting in an increase in capital adequacy ratio to 15.37%.

Meanwhile, foreign exchange asset revaluation played a major part in the first six months income, amounting to a healthy US $3.8 million as compared to a loss of US $3.9 million for the same period in 2005. Other income also increased from US $0.3 million in the first six months of 2005 to US $1.3 million for the first six months of 2006 partly due to an increase in performance fees.

In commenting on the results the Bank's Chairman, Mr. Wilson Benjamin, said:

"During the second quarter, BMB continued to exhibit sustained solid performance. We are extremely pleased with these results and determined to continue driving our franchise forward and rebuilding our banking relationships."

Albert I. Kittaneh, Chief Executive, said:
"We are maintaining our focus on our private equity fund investments and on reviving our client business even as we study less market sensitive revenues to help reduce volatility in earnings. The fundamental soundness of our assets, combined with the competence and dedication of our staff, continue to propel us towards our goal of enhancing shareholder value."

The Bank's first quarter report can be obtained through the Bank's web site at www.bmb.com.bh.

Bahrain Middle East Bank (BSC) was established as an Offshore Banking Unit in 1982. The Bank's shares are listed on the Bahrain Stock Exchange under (BMEB.BH) and are held by shareholders across the GCC.