Ahmad Hamad Algosaibi & Brothers Company (AHAG) wishes to provide an update regarding its current financial strength and ongoing business activities.

As previously communicated by the group, the operations within AHAG's financial arm have been significantly scaled back pending a more in-depth review and assessment of each division by AHAG's management and external financial and legal advisers. While this review is in its early stages, the preliminary findings indicate strong evidence that there have been substantial financial irregularities within the financial services arm.

While AHAG cannot at this time provide further specific comment on this ongoing investigation, so as not to jeopardize it, the group continues to provide its full cooperation to the relevant government and regulatory authorities in this regard, and to act in the best interest of all group stakeholders, including creditors.

AHAG remains in dialogue with creditors to its financial divisions regarding current financial obligations, and intends to continue to facilitate this process. In that regard, AHAG is in the process of requesting its creditors, and the creditors of Algosaibi Trading Services Limited, to appoint respective formal steering committees, which the respective creditors consider as appropriate representation of the lender constituency in terms of both geographic spread and financial interest. Formal notices to lenders will be sent over the coming days. A steering group for The International Banking Corporation B.S.C. (c) was formed on 31 May 2009.

AHAG wishes to assure all its stakeholders that the group is committed to working in a collaborative manner to take swift and robust action to minimize potential losses. AHAG would also like to assure various stakeholders that the activities of AHAG's trading divisions remain unaffected by these potential financial irregularities.

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