FOR IMMEDIATE RELEASE
15 July 2000


TAIB BANK REPORTS US$ 7.5 MILLION NET PROFIT FOR THE FIRST HALF OF 2000


TAIB Bank E.C., the Bahrain-based Investment Bank, has announced a net profit of US$ 7.5 million for the first six months of 2000, its highest ever first-half year result since inception. The corresponding figure for the same period in 1999 was US$ 6.5 million.

In his statement, Mr Iqbal G. Mamdani, Vice Chairman and Chief Executive Officer, said, "Despite having seen major downward corrections in the capital markets in the second quarter of the current year, I am happy and pleased to announce that the Bank has achieved a record first-half net profit of US$ 7.5 million-which is a 15% increase over 1999 --, and a 11% increase in the total operating income, over the same period last year. Earnings per share, for the current year up to end-June 2000, stands at 8 cents on a higher paid-up capital base of approximately US$ 102 million, the higher capital base resulting from both the Bonus Issue and a fully subscribed and successful Rights Issue in May 2000. The corresponding figure in June 1999 was also 8 cents, but on the then paid-up capital base of US$ 84 million."

TAIB has consistently improved upon previous first-half results for the fifth year in a row. "These record results in 2000 are a result of an active and profitable half-year for our private equity and real estate investments and exits. Total Operating Income for the 6 months ended June 2000 was US$ 20.3 million, of which US$ 20 million, or 98%, was non-interest income, up from 77 % for the whole of 1999. Securities Trading Income stood at US$ 6.67 million, 34% higher than the corresponding level for last year, despite the turbulence in the markets. The Bank's decreasing dependence on interest income reflects its transition and concentration on pure investment banking transactions", Mr. Mamdani added, and emphasized that the leverage ratio of the Bank, as at June 2000, at 2.8, is at a comfortable and healthy level.

"On another front, TAIB's family of Funds now stands at 8, with 3 new Funds having been launched in the first 6 months of 2000 -the TAIB Crescent Global Fund (an Islamic Equity Fund), the TAIB Thames Fund (an FT-SE 100 - related Fund), and the TAIB Rocky Mountain Fund (a Fund of Funds). It is our expectation that these Funds will perform well during the remaining period of 2000. We anticipate launching 2 more Funds in July", Mr. Mamdani added, " namely, the TAIB Technology Growth Fund and the TAIB Biomed Fund, both of which show considerable promise".

The Bank has also strengthened its equity in its subsidiaries in India, Turkey and Kazakhstan in the current year. The performance of these subsidiaries in the first half of the current year was as per their budgets and it is our expectation that their contribution to the net profit of the bank will increase this year. Among the subsidiaries, our Indian subsidiary, TAIB Capital Corporation Limited (TCCL), in Bangalore, India, warrants special mention, for having established a name in seeking out investment opportunities in companies which have the potential to perform in the Information Technology, Communication and Entertainment sectors." he further added.

TAIB Bank E.C., an international Investment Bank based in Bahrain and listed on the Bahrain Stock Exchange, focuses on business activities in the regional markets of the Gulf, the Indian Subcontinent, Turkey and Central Asia.

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For more information, please contact the press coordinator:
Ali Khunji (Tel: 533334, Fax: 533174) E-mail: a_khunji@taib.com