TNI Shareholders Approve Dividend

Abu Dhabi, 7 June 2006: Shareholders of The National Investor (TNI), the region’s leading investment banking firm gathered for the firm’s Annual General Meeting yesterday evening at Le Royal Meridien hotel in Abu Dhabi. Business conducted included the approval of a cash dividend distribution of five percent of the par value of outstanding shares (fifty fils per share) and a ten percent bonus share dividend, which will result in the issuance of five million additional shares.

Mr. Abdullah Mazrui, the Chairman of the Board of Directors, praised the firm’s unprecedented success in achieving profits of AED 113 million, representing a 42% increase over the prior year. “I am gratified to report that TNI’s results for the year ended March 31, 2006, exceeding even the high expectations of the Board, will validate our shareholders’ expectations and set the stage for a successful future.” Revenues for the year were up 74% over the prior year to set a new record of AED 195 million. Mr. Mazrui also expressed his appreciation for the ruling family and their continuous support for the UAE economy, and investment companies in particular.

Mr. Orhan Osmansoy, Chief Executive Officer, provided details about the superior results of each of the firm’s divisions and offered a glimpse of expected future successes.

Revenues from investment banking activities were AED 59.6 million, representing an increase of 214% over the prior year. The firm built upon its position as the leader in initial public offerings (IPOs) in the UAE and the GCC and participated in some of the year’s record-breaking IPOs, including those of Aabar (which was oversubscribed 808 times), Tamweel, the first operating LLC to go public in the UAE and Kingdom Hotel Investments, the second ever listing on the DIFX. Mr. Osmansoy highlighted the firm’s bright future in this area, “our investment banking team has a rich pipeline of regional and international IPO and M&A mandates.”

In June, 2005 TNI received the Euromoney award for “Best Equities House in the UAE.” The firm has been nominated for the same this year, and is hopeful to be the first to win it two years in a row.

The firm’s private equity division had revenues of AED 26.7 million. In addition to managing its own resources, TNI has launched a third-party private equity fund, the TNI Growth Capital Fund, L.P. The fund is designed to provide superior risk-adjusted returns by targeting late-stage growth capital investments in the GCC, North Africa and the Asian sub-continent.

TNI is the only investment banking firm in the UAE with a specialized, fully dedicated real estate team offering comprehensive solutions in investment banking, asset management, development and international investing. In its first full year of operations, this division has contributed significantly to the firm’s bottom line. Having managed two successful public placements and three advisory mandates during the year ended March 31, 2006, the division also manages three real estate funds and will launch another in the near future.

This past year was also the first full year of operations for the firm’s asset management division, which contributed over AED 24 million to its revenues. Three funds were launched, each of which are considered among the best performers of their respective classes. Mr. Osmansoy commented on the division’s success, “in a relatively short time, we have consolidated our reputation and have earned a place on the map of regional asset management activity, as witnessed by our award in May 2006 of “Best Asset Management House” by Banker Middle East. Over the coming months we will leverage the firm’s strong track record as an investment manager to broaden our fund offering around various asset classes, investment styles and risk profiles.” Revenues from TNI’s proprietary investment portfolio were AED 54 million for the period. The firm is achieving its goal of diversifying revenues and improving the quality of earnings. Mr. Osmansoy pointed out that as recently as two years ago, the firm relied on activity from its proprietary portfolio to contribute over 90% of total revenues. For the fiscal year ended March 31, 2006, 73% of the firm’s revenues are generated from its managed businesses.

Another first for the firm was the establishment of a dedicated research department. Expected to be fully operational within the next few months, the research department reflects the firm’s belief in and commitment to fundamental analysis and equity research as a key factor to success in capital markets.

Also on the agenda for the meeting was the Board’s proposal to appoint Mr. Abdulla Nasser Bin Hawaileel Al Mansouri as a Director. The motion passed overwhelmingly and Mr. Al Mansouri will begin his tenure effective immediately. An investor in TNI for over five years, Mr. Mansouri is currently one of TNI’s largest shareholders. His holdings in the firm represent his personal belief in TNI and its future success.

About The National Investor: The National Investor (TNI) is a leading regional investment and merchant banking firm with a distinguished track record in investment banking, private equity, real estate and asset management. The firm is a Private Joint Stock Company headquartered in Abu Dhabi and is the leading arranger of public share offerings in the UAE and the GCC.