UIB ANNOUNCES THE ACQUISITION OF BWA WATER ADDITIVES - A LEADING WATER TREATMENT SOLUTIONS PROVIDER

(Manama, September 30, 2008) – United International Bank B.S.C.(c), an investment bank headquartered in Bahrain, today announced its acquisition of the UK based BWA Water Additives (“BWA”), a leading water treatment solution provider from Close Brothers Private Equity Limited.

Headquartered in Manchester, UK, BWA Water Additives has been operating for over 35 years with laboratories in the UK and USA and has a turnover of US$125 million. The company is a world leader in the development and marketing of high performance speciality chemicals for water treatment.

The company has developed a strong high performance product line to meet customer requirements in over 85 countries. The company’s products are used to control and prevent corrosion of iron or steel, inorganic deposits on the surface of pumps and pipes and treat microbiological growth in the high growth sectors of water desalination, industrial water treatment processes, and secondary oil recovery from oilfields

Abdulla Janahi, UIB’s General Manager and Acting Chief Executive Officer, said: "From a regional perspective, BWA has a significant presence in the Middle East and has positioned itself as the leader in the high performance chemicals sector for water treatment. This offers UIB the opportunity to support BWA in its drive through the next phase of growth.”

"Going forward, as articulated in the Bank’s business strategy, UIB will continue to identify and invest in niche investment opportunities with the objective of achieving attractive returns for our investors." Mr. Janahi added.

Dr. David Cartmell, Executive Chairman & Chief Executive Officer of BWA said: “We are extremely pleased to have partnered with UIB. This is an important milestone in the development of BWA. Taking into consideration the growth potential in the Middle East region we believe that with their experience and knowledge of the region, UIB will be a valuable partner in growing BWA internationally.”

Financing for the transaction was provided by Royal Bank of Scotland, HSBC and the Royal Bank of Scotland Equity Fund.

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