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British Islamic Insurance Holdings formed to launch an Independent Takaful Business in the UK

The first Board Meeting of British Islamic Insurance Holdings (BIIH) took place in Riyadh, Saudi Arabia, to finalise the formation proceedings of the Company and to appoint its advisory team.

Mr. Abdulaziz Aljomaih of Aljomaih Holdings, Riyadh, Saudi Arabia, was appointed as Chairman of BIIH. The Company also appointed two leading professionals from the UK insurance industry on its board.

BIIH intends to raise its capital from £2 million to £20 million through a private placement and has selected Ernst & Young, Bahrain as its financial advisor to assist the Company in preparation of its Private Placement Memorandum (PPM). Standard Chartered Bank, Bahrain has been appointed as the Receiving Bank. Norton Rose has been appointed as legal advisor to assist BIIH in preparation of regulatory application for the UK Financial Services Authority (FSA).

Mr. Aljomaih, the Chairman of BIIH highlighted the large size of business opportunity for takaful products in the UK. He said: "The UK insurance industry is the largest in Europe and its premium to GDP ratio of 12.6% is the highest in the world. The insurance premium paid annually by the UK Muslim population is broadly equal to the insurance premium of the entire Gulf region".

After its private placement in March, BIIH intends to commence work on preparing the regulatory application for the FSA. The Company is optimistic about gaining the regulatory permission from the FSA in time to launch the business during 2007. An IPO is planned on AIM at London Stock Exchange sometime in 2007.

This press release is directed solely at persons outside the United Kingdom and it must not be acted upon by persons in the United Kingdom.

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