PRESS RELEASE:

BANK NEGARA MALAYSIA GRANTS APPROVAL FOR AN ISLAMIC BANK LICENSE TO A CONSORTIUM OF GCC BANKS LEAD BY RUSD BANK.

[October 13, 2004 – Kuala Lumpur]

The Board of Directors of RUSD Investment Bank, Inc. (“RUSD Bank”) is very pleased to announce the approval received from Bank Negara Malaysia granting RUSD Bank-led consortium a license to establish a new Islamic bank in Malaysia. The investor-group led by RUSD Bank includes established, Middle East based financial and investment banking institutions, namely Qatar Islamic Bank, and Global Investment House.

Dr. Saleh Jameel Malaikah, the Chairman of RUSD Bank said, “The approval of the banking license is a significant milestone for RUSD Bank in its efforts to bring together the financial strength and Islamic banking experience of reputed Islamic financial institutions of the Gulf Cooperation Council (“GCC”) to the new Islamic Bank to be established in Malaysia”.

This initiative is driven primarily by the positive business environment in Malaysia where Bank Negara Malaysia has invested substantial efforts over the last 2 decades in promoting and establishing a conducive environment to allow Islamic banking and financial services to grow and flourish. Bank Negara Malaysia has targeted 20% assets for the Islamic banking and finance in the overall financing sector of Malaysia in its Financial Sector Master Plan. Malaysia has achieved significant progress in product development and transactions in the Islamic banking and financial services sector and has made important contribution to support crossborder Islamic finance as well. There is now a wider acceptance of Islamic financial products in Malaysia and the future prospects are very exciting, driven by the positive economic outlook for the country which shall spur greater demand for financial services.

The new Islamic Bank will play its role in contributing towards the achievement of the 20% target set by Bank Negara for Islamic banking assets. The new Islamic Bank will offer full fledged banking services catering to the consumer, corporate and institutional customers, covering both ringgit and non-ringgit transactions. The new Islamic Bank will utilize the latest technology for efficient and comprehensive services delivery to its customers.

Dr. Saleh J Malaikah said, “participation of a wider based investor group from the GCC countries, with the appropriate capital strength, strong credit and risk management expertise and a commitment to providing value-added Islamic financial services will provide a strong foundation for the new Islamic Bank in achieving its business objectives”. He also added that “the proposed Bank will be a befitting vehicle to achieve our goal of enhancing the business and financial collaboration between the economies of the Arabian Gulf and Malaysia in particular, as well as the ASEAN region”.

The consortium is keen to further promote Malaysia as an Islamic financial centre and will be able to add significantly to the Islamic banking sector in Malaysia with its existing portfolio of Islamic products and services. Some of the immediate opportunities that the consortium banks envisage include issuance of Islamic bonds to refinance existing conventional loans by capitalizing on consortium’s distribution and fund raising ability in the middle-eastern market, facilitating and accelerating cross-border transactions and investment banking opportunities between the Middle East and Malaysia, increasing and channeling investments by consortium’s middle eastern clients into the Islamic Banking sector and the Equity markets in Malaysia, and introducing new Islamic products similar to those launched in the GCC markets such as longer tenure savings and investment products.

The participants have been specifically active in developing the Islamic market in their respective countries within the GCC and have facilitated Bonds & Islamic Finance deals, build strategic alliances with Investment Grade institutions to deliver products with unique features.

Dr. Malaikah, while explaining the strategy for the new Bank, said “our bank will seek to establish broader Shariah compliant, business and financial linkages between the GCC and Malaysia in target sectors that include healthcare, higher education, water and wastewater treatment, oil and gas, agro-based and food manufacturing industry, biotechnology, and Tourism, among other opportunities.

The consortium for the new bank comprises of institutions representing different countries within the GCC, thus bringing together broader spectrum for enhancing trading and financing activities between the GCC and Malaysia.

The partners in the consortium include RUSD Investment Bank, Qatar Islamic Bank and Global Investment House, who are committed to help the Malaysian Government through the new Bank in its efforts to develop the Islamic banking and finance industry within Malaysia.

Managing Director of RUSD, Naseeruddin Khan specifically praised BNM’s efforts on this occasion in facilitating foreign participation in the economy of Malaysia and quoted RUSD Bank’s example and its contribution in Malaysia’s efforts. He said RUSD was registered in Labuan as an off-shore investment bank just two years back and within this short period has succeeded in bringing foreign direct investment to Malaysia through participation in the new Islamic Bank.

Qatar Islamic Bank (QIB), another partner in the consortium will be the major shareholder in the new Islamic Bank. QIB is the fourth largest Islamic bank with an extensive network of branches in the State of Qatar, and investments spread over throughout the MENA region. QIB’s background and expertise in Islamic commercial banking and financial products will provide the new Bank with base to establish itself in the Malaysian financial industry and contribute to the healthy competition of Islamic banking and finance in the region.

Global Investment House from Kuwait, which is the third partner in the new Bank consortium brings with it vast experience in investment banking and equity research. Global, which very recently got listed on the Bahrain Stock Exchange besides KSE, has been specifically active in developing the Islamic market in Kuwait and has acted as lead manager for Bonds & Islamic Finance deals. Global has managed to build strategic alliances with Investment Grade institutions to deliver products with unique features, which are available in the Islamic finance market mainly on the wholesale level. In that regard, Global Investment House has succeeded in lead managing & raising finances under the Islamic Shariah in excess of UD 450 million.

The grant of new Islamic Bank license to RUSD lead consortium will be a positive addition to the existing Islamic banks in Malaysia and will help bringing in foreign investment to complement economic growth of the country and in increasing bilateral trade between the GCC and Malaysia. The consortium is confident to be instrumental in playing a significant role in achieving BNM’s target for the Islamic banking sector.