KASB announces investment from three international funds in KASB Capital

Karachi, 5 September 2007

KASB Capital Limited, the local partner of Merrill Lynch and the asset management, brokerage and investment banking arm of the KASB Group, is pleased to announce that it has successfully raised PKR 2 billion (US$ 33 million) through a private placement of equity to GLG Emerging Markets Special Situations Fund, Tikehau Asia and Liberty Harbor. Under the terms of the placement the above mentioned investors will collectively take a 35% stake in KASB Capital Limited.

Under the new Group structure KASB Capital, which has been granted a license by the SECP to perform Investment Finance Services (IFS), becomes the holding company for KASB Securities Limited and KASB Funds Limited. KASB Capital, which also includes investment banking services, has also launched a new Principal Investments division which will allow it to use its own capital to invest in businesses. "Through this transaction, three highly reputed global investment funds have given KASB Capital a value of US$ 100m", said Farid Masood, Managing Director, KASB Investment Banking, "We plan to use the additional capital to further strengthen our businesses and invest in new growth opportunities. With the backing of our new investors and the access to funds, we will firmly establish ourselves as the financial services firm of choice".

GLG Emerging Markets Special Situations Fund is investment managed by GLG Partners LP ("GLG"), an independent asset manager, established in England and authorised and regulated by the Financial Services Authority ("FSA"). Originally founded in 1995 as a division of Lehman Brothers, GLG was restructured as a separate legal entity in 2000. Today, GLG manages approximately 40 Funds. These Funds represent a range of different alternative and traditional long-only investment strategies.

GLG employs approximately 300 professionals and manages assets of more than US$ 20 billion.

Liberty Harbor is an investment vehicle focusing on fundamentally-driven corporate investment opportunities across capital structures. Liberty Harbor is part of Goldman Sachs Asset Management (GSAM).

Tikehau Group (France) is investing in KASB Capital through Tikehau Asia. Tikehau Group was founded in 2004. The group's main activity is the structuring of financial operations and investments in various industries.

KASB Capital was advised by Merrill Lynch and KASB Investment Banking.