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KIPCO 2004 First Quarter Net Profit Rockets 173 Per Cent to KD 6.73 Million (US$ 22.83 Million)

Kuwait City, April 26, 2004 -- Kuwait Projects Company (KIPCO), one of the leading diversified holding companies in the Middle East and North Africa, has announced its 2004 first quarter net profit rocketed 173 per cent to KD 6.73 million
(US$ 22.83 million), or 6.65 fils (2.26 cents) per share, up by KD 4.27 million (US$ 14.49 million) to almost triple the KD 2.46 million (US$ 8.34 million), or 2.45 fils (0.83 cents) per share earned in the first quarter of 2003.

The result is in line with forecasts made by KIPCO managing director and chief executive officer Faisal Al Ayyar during the recent KIPCO Financial Outlook Forum at Kuwait Stock Exchange, when he predicted the Group’s 2004 net income would rise by around 39 per cent to KD 25 million (US$ 85 million).

2004 first quarter revenues were KD 19.5 million (US$ 66.17 million) compared to
KD 12.6 million (US$ 42.75 million) in the same period of 2003, a 54 per cent increase of KD 6.9 million (US$ 23.41 million).

"These impressive results demonstrate that our established strategies to build sustainable profit and grow the real value of the Group have placed us well on track to deliver on our forecasts for 2004 and beyond," said Al Ayyar.

KIPCO’s strong growth is underpinned by similar performances in the first quarter by its core listed companies. Burgan Bank’s net profit in the quarter surged by 119 per cent to KD 6.6 million (US$ 22.4 million); United Gulf Bank was up by 86 per cent to KD 3.4 million (US$ 11.5 million); Wataniya Telecom by 68 per cent to KD 11 million (US$ 37.3 million); and Gulf Insurance Company by 12 per cent to KD 1.7 million (US$ 5.8 million). In the full year 2003, KIPCO’s net profit soared 182 per cent to KD 18.2 million (US$61.8 million)

KIPCO, with assets of more than US$10 billion under management and control is a major regional force in financial services and media & telecommunications. Its shares are the most actively traded on the Kuwait Stock Exchange.

For Further Information:
Ahmad Al Ajeel Vice President
+965 244 0853
Marketing/ R&D/ PR
Robin Wilson
Senior Consultant
+965 635 6969