Employee Equity Incentive Plan

European Islamic Investment Bank plc

("EIIB" or the "Company")

Employee Equity Incentive Plan

5 July 2010

EIIB announces that, pursuant to an employee equity incentive plan approved by the Company's Board of Directors (the "Board") on 5 March 2010 (the "Plan"), Subhi Benkhadra, the Company's Chief Executive Officer; Keith McLeod, the Company's Finance Director; and employees of the Company at the date of this announcement (together the "Beneficiaries") have agreed to participate in the Plan. The Plan involves the Beneficiaries subscribing to interests in a partnership between the Beneficiaries and the Company's employee benefit trust (the "EBT"). The shares to be contributed to the Plan have already been purchased by the EBT and are currently held by it.

The Plan provides that, subject to an appreciation of the Company's ordinary share price beyond 4.5 pence per share (or equivalent price in the event of a restructure of the Company's capital) (the "Threshold Condition"), the Beneficiaries will be entitled to the growth in value of ordinary shares attributable to them (the "Growth Value Entitlement"). Subject to the meeting of the Threshold Condition on each of the 3 vesting dates of 30 November 2010; 30 November 2011; and 30 November 2012, the Growth Value Entitlement will vest in 3 equal portions on each of those dates.

Pursuant to the terms of the Plan, the number of ordinary shares attributable to Mr. Benkhadra is 4,147,727 and to Mr. McLeod 2,386,364.

The Board believes the Plan provides a direct incentive to employees of the Company that is linked to the Company's share price performance and aligns employee interests with the interests of the Company's shareholders. The Board therefore believes the Plan promotes the success of the Company and its shareholders.