NEWS ROOM

Addax announces record mid year profits Addax Investment Bank BSC (c) (Addax) - period ended 30th June 2006

Date : 10 July 2006

Addax reported consolidated net profit of US$3.4 million for the 1st half of fiscal 2006, an increase of 170% over the previous year.

The Bahrain -based investment bank, announced record profits for the six-month period ended 30th June 2006. Addax reported consolidated net profit of US$3.4 million for the 1st half of fiscal 2006, an increase of 170% over the previous year. In the 1st half of 2006, Addax successfully completed the 1st tranche of the MENA Serviced Residence Company (MENA) private placement.

MENA is a holding company that will acquire and develop properties managed by The Ascott Group of Singapore, the largest provider of serviced residence apartments in the world. The placement was over-subscribed by 150% and includes prominent institutional investors and high net worth individuals across the GCC region. The first property under Ascott is expected to be operational in early 2007. “The Bank is on course to register record profits for the current year, having already earned US$ 3.5million net income in the first six months of 2006 which was higher than the profit for all of 2005 (US$ 3.2million),” said Yousef Al-Essa, Addax CEO.

“The boom in economic development of the region coupled with strong liquidity and demand for innovative investment opportunities has provided Addax with an ideal setting for its own growth and development.” At 30th June 2006, Addax’s return on average equity was 43% as compared to the return of 21.6% for the same period in 2005. The return on average assets also increased to an 37% as compared to 21% as of 30th June 2005. The cost to income ratio during the six months of the current year improved to 40%. The Earnings per share for the first half of 2006 was USD 0.24 as compared to USD 0.13 for the comparative period of previous year.