Conversion of 50% Mandatory Convertible Bonds

Conversion of 50% of Mandatory Convertible Bonds

We refer to our earlier market disclosure, dated March 7, 2012, regarding the BankMuscat Convertible Bonds (BMCB - MSM code) which were issued in March 2009. We would like to inform the market that 50% of the issue, which represents 16.157 million bonds, will be converted into common equity shares today, March 20, 2012.

The price for the conversion will be OMR 0.515 and has been calculated at a twenty percent discount to the average closing market price, over the preceding 90 calendar day period prior to the conversion date. This has been adjusted for the impact of bonus shares issued on March 18, 2012.

The remaining 50% of convertible bonds will be converted into equity on March 20, 2014.

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