EFG Hermes Plans to Cancel Treasury Shares

EFG Hermes Holding S.A.E.

Thursday 29/01/2015

PRESS RELEASE

EFG Hermes Plans to Cancel c. 37 m Shares

Investor demand for the ABB process didn't match internally set clearing price, resulting in decision to cancel shares

Cairo - January 29th 2015: EFG Hermes Holding S.A.E. ("EFG-Hermes" or the "Company"), the Arab World's leading investment bank announced today that it has decided to cancel the previously announced sale (the "Sale") of the 37 million Company shares (the "Shares") that it holds on its books through its fully owned subsidiary EFG Hermes IB. The decision comes following an Accelerated Book Build ("ABB") process that was lead managed by Goldman Sachs International and was well received by the market. However, the demand generated was at prices that didn't meet the Company's expectations, given the upside that it sees in the value of EFG Hermes shares.

The Sale decision had mainly been driven by Egyptian Financial Supervisory Authority ("EFSA") regulations governing shares held by listed companies or their subsidiaries, which would have forced the Company to either cancel the Shares or sell them before February 4th 2015. While the Sale would have provided the Company with proceeds to accelerate its expansion strategy while returning cash to shareholders, the Company was only willing to pursue the Sale at a price that was more accretive to its shareholders than the cancellation of the Shares.

Accordingly, the Company will proceed with all the necessary steps to cancel the Shares, with this decision being ratified by the Board and the General Meeting. Ultimately, through the purchase of the Shares, the Company made a very sound investment on behalf of its shareholders, having purchased the Shares at EGP 11.5 per share almost a year ago and seeing them appreciate in value to EGP18 per share at the elapse of the EFSA mandated one-year period.

Management remains highly committed to pursuing its expansion plans and will seek alternative methods (including currently available internal resources) to finance them, with a view to continuing to fuel the future growth of the Company, while focusing on ongoing improvement in capital utilization and boosting return on equity metrics.

For further information:

Investor Relations Department

Email: [email protected]

Tel: +20 (0)2 35356710

Fax: +20 (0)2 3535 7017

Head of Investor Relations - Hanzada Nessim

Email: [email protected]

Tel: +20 (0)2 35356502

Fax: +20(0)2 3535 7017

www.efg-hermes.com