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» Annual General Meeting of Capital Management House Announces highly profitable first full year with 11.64% return on shareholders' equity and distributes cash dividends

Manama, Bahrain, 28 March 2008: Capital Management House announced yesterday that it has posted excellent financial results in its first full year of operations and Shareholders have approved the Board of Director’s recommendation to pay a cash dividend of 5% of the share capital following the 2007 financial results. The Annual General Meeting also elected the Board of Directors for the next three years.

“We draw our strength from the support of our Shareholders and clients and we are confident of their continuous support for our strategy to introduce more innovative Islamic financial products” said Mr. Khalid Abdulla Al Bassam, Chairman of CMH in a press release following the Annual Ordinary and Extraordinary meetings held yesterday.

Capital Management House has announced a net profit of US$ 5.6 Million for the financial year ending 2007 and an average return on shareholder equity of 11.64 %. CMH has achieved a significant growth since it was formed 18 months ago as 2007 proved to be the year of growth and expansion.

“The net profit and earnings per share of 11.8 cents (US) reported by CMH is a direct result of CMH's ability to create value for Shareholders and customers. We expect expansion and diversity in our Shareholder base when we complete the proposed increase in our Share Capital to US$100 million through a rights issue to existing and additional strategic Shareholders” added the Chairman.

Mr. Khalid M. Najibi, the Vice Chairman and Managing Director of CMH further added that "it is worth mentioning that the Board of Directors has been very keen to recommend distributing a cash dividend in the first full financial year of the company which lays the firm foundations on which the company can only get stronger going forward."

Commenting on the Company’s plans and expected growth drivers in 2008, Mr Al Bassam stated: “The solid performance in the Company's first full year of operations is the result of senior management’s focus on delivering the strategic objectives of the Company. We expect the Company to continue delivery of its growth strategy. We have a good pipeline of projects that we anticipate to launch this year and the Company will engage in various business lines such as real estate, asset management, private equity and advisory services through an experienced team of industry professionals. These businesses will make a positive contribution to 2008’s profitability and diversified recurring income stream".

The Agenda for the Annual Ordinary and Extraordinary Meetings also included approval of the financial statements for the year ending 31 December 2007, External Auditors and Sharia’a Supervisory Board reports. The meetings also elected the Board of Directors which is chaired by Khalid A. Al Bassam with Mr. Khalid M. Najibi as Vice Chairman and Managing Director and membership of:

»	Saleh Hassan Al Afaleq
»	Shaikh Khalid Bin Mohammed Al Khalifa
»	Jamal Saeed Al Ojaili
»	Hisham Abdulla Al Saie
»	Ahmed El Shall

In closing, the Chairman extended his sincere appreciation to all those who have been instrumental to CMH’s success in 2007; the Central Bank of Bahrain for its support and guidance, the Board of Directors and the Sharia’a Supervisory Board for their invaluable counsel; the Shareholders; the clients of CMH; the dedicated Management and staff for their efforts that made 2007 memorable.

The meeting expressed its thanks and appreciation to the contribution of the Board of Directors and the Executive Management and praised their role in achieving the strong financial results for the year 2007.

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