NEWS ROOM

Addax Bank Announces Successful Completion of MENA Serviced Residence Capital Increase Private Placement Oversubscribed by 150%

Date : 12 June 2006

The private placement was extremely well received by investors and was oversubscribed by 150% within record time.

Addax investment bank has announced the successful completion of its first phase of capital fund raising for Middle East North Africa (MENA) Serviced Residence Company, a holding company set up to acquire and develop at least 15 properties to be managed by The Ascott Group (Ascott) across the MENA region.

The private placement was extremely well received by investors and was oversubscribed by 150% within record time. The first phase of capital fund raising raised US$ 100 million towards the US$ 1 billion MENA Serviced Residence Fund. Investors in the MENA Serviced Residence Fund consist of prominent, high net-worth individuals and institutions from across the GCC.

The MENA Serviced Residence Company will acquire properties with an initial focus on Bahrain, the United Arab Emirates, Qatar, Kuwait and Saudi Arabia The first property is expected to be operational in 2007

Yousef Al-Essa, Chief Executive Officer, Addax Investment Bank said, “We are extremely pleased with the positive response from investors to this offering. Our clients appreciated that this was a highly focused, unique offering with world class management and branding.”

“As the largest international serviced residence operator in Asia Pacific and Europe, the Ascott Group has a reputation for offering premium, world class residences around the world. Through our strategic partnership with Ascott we hope to raise the standard of serviced residences in the Middle East market. The first two properties have already been earmarked and the first property is expected to be operational in 2007.” Al-Essa concluded.