Final Results

European Islamic Investment Bank plc

8th April 2011

Results for the year ended 31 December 2010

The Board of European Islamic Investment Bank plc ("EIIB", the "Bank" or the "Company") announces its audited results for the year ended 31 December 2010.

For further information, please contact:

EIIB plc Tel: +44 (0)20 7847 9900

Subhi Benkhadra, CEO

Keith McLeod, Finance Director & Deputy CEO

Arbuthnot Securities Tel: +44 (0)20 7012 2000

Nick Tulloch/ Ben Wells

Fishburn Hedges Tel: +44 (0)20 7544 3056

Michelle James/ Andrew Marshall

HIGHLIGHTS

·; Total Comprehensive Income of £7.5m (2009: loss of £18.9m)

·; Total Equity increase to £147.1m (2009: £141.3m)

·; Assets increase by 9% to £181.5m (2009: £167.0m)

·; Revaluation gain on oil and gas assets of £20.8m before tax

·; New CEO, Mr. Subhi Benkhadra appointed in March 2010

·; Revised strategy focussing on three core business lines in Islamic Markets: - Banking, Investment Management and Financial Services

·; Advisory agreements signed with key investment advisers covering Arab and ASEAN markets

·; Quoted Equity Fund launched under new "Turath" brand

·; Strategic stake acquired in a Holding Company specialising in investments in technology, media and telecommunications in the Middle East and North Africa

·; Strong capital base and liquidity, regulatory ratios of 100% and 70% compared to FSA minima of 8% and -5% respectively

CHAIRMAN'S STATEMENT

In the name of Allah, the Most Gracious, the Most Merciful

To the shareholders of the European Islamic Investment Bank plc

I am pleased to present to our Shareholders, the European Islamic Investment Bank plc's ('EIIB or 'Bank') results for 2010. This is my first Statement following my appointment as Chairman of EIIB on 10th February 2011. The Board of EIIB has a wealth of talent and experience and I am proud to have the opportunity to serve as the Chairman of the Board.

On behalf of the Directors, Employees and Shareholders of EIIB, I would like to extend my very sincere thanks and best wishes to Mr. Adnan Yousif, who resigned from the Board of Directors and stood down as Chairman in February 2011. Mr. Yousif was instrumental in establishing EIIB as the first Islamic Investment Bank in the UK, and steered it through its formative years and the global economic crisis of 2008/9. He leaves behind an organisation which has returned to generating value for Shareholders.

During the past year, confidence began to return to the financial markets, with equity markets recovering strongly from the lows posted during the depths of the credit crunch and liquidity starting to become more widely available. 2010 was therefore an appropriate time for the relaunch of EIIB.

As Shareholders will be painfully aware, EIIB's founding strategy has shown itself to be over-optimistic and incompatible with the dramatically changed business environment resulting from the global recession. As noted in the interim report, following a detailed strategic review, the Directors determined that EIIB would in future focus on three core business lines within Islamic markets, namely Investment Management, Banking and Financial Services. The relaunch was cemented by the introduction of Mr. Subhi Benkhadra as the Bank's new Chief Executive Officer in March 2010. Subhi brings with him a wealth of experience and has the full confidence of the Board and the Management.

In this prevailing context I am particularly delighted to report that in 2010 EIIB has once again started to produce positive value for Shareholders, generating a total comprehensive income of £7.5m. This outcome reflects the successful development of investments undertaken by the Bank, as well as the early signs of success from the Bank's new strategy which is being currently implemented by the new CEO and his team.

Significant progress has been made with the development of the Investment Management business; Advisory agreements have been signed with Esterad Investment Company and Navis Fund Managers Limited to provide expert Investment advice covering Arab and South East Asian markets respectively. In December EIIB launched the Turath Quoted Equity Fund (TQEF), the first fund launched under EIIB's Turath brand. The Fund will look to generate capital appreciation through investing primarily in quoted equities in Islamic Markets. Other developments during the year included the Bank taking a strategic stake in Accelerator Technology Holdings, an Investment Holding Company based in Jordan specialising in regional Technology, Media and Telecoms. In addition the Bank was able to opportunistically acquire a secondary investment from a defaulted investor in the Navis Islamic Investment Fund (Asia) LP, generating a revaluation gain by the year end of £1.1m.

The Bank's Private Equity investments in Tri-Tech and DiamondCorp have begun to demonstrate positive results. Tri-Tech, the oil and gas venture has, with its partners, undertaken substantial exploration and production activity during the latter part of 2010. The results to date have been very positive and proven reserves of oil and gas discovered within the land controlled by Tri-Tech are significant. Following the results of an independent valuation undertaken at the year-end, the Directors have determined that EIIB's oil and gas assets should be revalued to £26.4m, generating a gain of £20.8m before the deferred tax liability of £7.3m, which is recognised in Other Comprehensive Income. DiamondCorp, the emerging diamond mining company has made good progress during 2010, focusing primarily on development work at the company's principal asset, the Lace mine in South Africa. It is anticipated that DiamondCorp will extract a bulk sample from the Lace mine by May 2011 and, assuming that the test results from the bulk sample are favourable, this will be a significant step forward in bringing the Lace mine to commercial production. EIIB participated in further capital raises by DiamondCorp in 2010 to fund the ongoing development work. EIIB's share of the capital raised was £2.8m. EIIB's investment was revalued to the equity issue price of 8.5 pence per share, generating a revaluation gain of £0.6m.

On the Banking front, yields persisted at low levels during 2010, and the volume of Sharia'a compliant transactions was significantly down on previous years. In this muted environment EIIB continued to build relationships in Europe, the Middle East and Asia, whilst managing the Bank's currency exposure and excess liquidity prudently.

The Financial Services business line is in the early stages of its development. The opportunity for corporate finance, custody, trust and fund administration, and business advisory activities within the Islamic Market is significant and largely un-serviced. A number of products and potential acquisitions are being actively considered and I would anticipate further developments during 2011.

As noted in the interim report, the Directors determined that EIIB should exit its holding in the Saad Golden Belt Sukuk; this generated a onetime gain of £1.0m.

EIIB has always maintained a strong capital base (100% versus FSA regulatory minimum of 8%), and a highly liquid balance sheet (+70% versus regulatory minimum of -5%). With the deployment of capital under the new strategy, regulatory capital and liquidity ratios will be managed down in a tightly controlled manner to more efficient levels.

I am truly optimistic about EIIB's future prospects, our management continue to proactively implement the Bank's new strategy and move decisively to take advantage of opportunities which arise as the fallout from the economic crisis continues to play out. The year ahead will be one full of challenge and opportunity, however, EIIB is now far better positioned to deliver the returns and growth that our Shareholders expect.

I would like to sincerely convey my gratitude to all our Shareholders for their continued support and to our Management and the Board for their perseverance in restoring the Bank to health. With the grace of the Almighty, I look forward to a successful year ahead.

Shabir Randeree

Chairman

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2010

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2010

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2010

1 Segmental information

Following a strategic review of the Bank's business a new business model was implemented during 2010. The future development of the Bank will focus on Islamic markets and centre on the following three core businesses.

(a) Banking - encompassing deposit taking, provision of financing, treasury services, structured products and trading in Islamic and Sharia'a compliant securities

(b) Investment Management - covering quoted equities, private equity and real estate

(c) Financial Services - including corporate finance, custody, trust and fund administration activities and business advisory (active business of this segment is yet to commence)

These core business lines are the Group's strategic business units ("SBU"). Each SBU offers different products and services, and is managed separately based on the Group's management and internal reporting structure. SBU activities are monitored by the Bank's management committees and the Board which is provided with internal management reports on a monthly basis.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before tax and is reviewed by Group executive management and the board of directors. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

2 Private equity financial assets designated at fair value

Private equity investment represents the following:

(a) Group's ownership of 26.5% of an AIM (London) listed company in the UK. EIIB initially acquired 26.1% of this company during 2008 but diluted its holding to 22.7% in 2009 when it did not participate in a new shares issue. However, the Group's participation in new share issues during April and December 2010 increased its holding to the current 26.5%. A fair value gain in respect of this investment was recorded at £0.6m.

(b) Group's investment in partnership shares, that represents 6.5% of a closed investment fund, specialising in Asian private and public equities, at a cost of £2.578m. A fair value gain in respect of the fund was recorded at £1.1m as at 31 December 2010.

(c) Group's secondary market purchase of 19.6% of a private equity company that invests in ventures specialising in the information and communications technology value chain in the Arab world. Fair value of this investment was not different to its original cost, as at 31 December 2010.

 3 Oil & gas subsidiary

EIIB Group acquired a controlling interest in an oil & gas exploration venture on 20 March 2009. A financing facility was extended to facilitate the acquisition. EIIB Group obtained control over TriTechCapital Ltd (BVI) ('TriTech Capital') and its subsidiaries ('TriTech Group') via the acquisition of a shareholding in TriTech Capital and entering into a shareholders' agreement that enables the Bank to appoint the majority of the directors to the board of the TriTech Group companies. The terms of the financing facility were such that EIIB Group effectively bore the significant risks of the investment, it incorporated the right to convert the facility into equity shares at any time as determined by EIIB. EIIB's interest in TriTech for consolidation purposes was determined based on its effective interest in the net assets of the investee.

On 21 December 2010, EIIB exercised its rights and converted the facility into equity and as at 31 December 2010 held 91% of the entity.

The effective interest of EIIB and that of the Non-controlling interest:

Further to the above non-controlling interest (NCI) of 9%, a further NCI is created as a result of an arrangement between the TriTech Group and a team of consultants who are entitled to 20% of distributions after the settlement of total capital contributed by the owners. This arrangement had no value in 2009. The 2010 value is a result of the fair value gain on oil & gas development assets.

3.1 Oil and gas properties

Oil & gas exploration costs are capitalised as intangible assets on acquisition. These are tested for impairment on a regular basis, based on the results of exploratory activity and management's evaluation thereof. No impairment allowances have been made against the oil & gas properties during the year.

Following a successful exploration and evaluation process and upon demonstration of technical feasibility and commercial viability, oil & gas assets have been treated as development assets. These were assessed for impairment, before reclassification. In compliance with IFRS 6, the Group classify all oil & gas 'intangible' assets (e.g. exploratory licence) as 'tangibles' at the point of transfer to the 'development asset' phase.

Once at the development stage the oil & gas assets are measured at fair values for subsequent recognition, with gains and losses recognised in 'other comprehensive income' in compliance with Group's accounting policy.

The Group engaged an independent expert to assess its future net reserves ('income approach') of its oil & gas assets as at 31 December 2010, and to evaluate the technical feasibility and commercial viability of these properties. Based on this assessment, it was decided that the assets should be accounted for as development assets as per EIIB's accounting policy.

The future net reserve assessment utilises the Society of Petroleum Engineers - Petroleum Resources Management System ('SPE-PRMS') reserve definitions and New York Mercantile Exchange ('NYMEX') oil and gas price curves as on the valuation date (31 December 2010). These reserves are adjusted for risks based on specific technical information on the specific asset categories.

Further to the above, an assessment of recent arms-length transactions that represents similar oil and gas properties in the same area was carried out to evaluate the fair values.

Total cost of the currently held oil & gas development assets stood at £5.5m. The fair value gain of £20.8m and the deferred tax provision of £7.3m thereon are recognised in the other comprehensive income of the financial year 2010.

The following table illustrates the net quantities of oil and gas reserves, the expected future cashflows discounted at 10% and the risk weightings applied to recognise the various risks associated with each category of reserve.

4 The financial information included within this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2010 were approved by the directors on 6 April 2011. These accounts were published on 7 April 2011 and will be delivered to the Registrar of Companies. The report of the auditors on these accounts was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not include a statement under section 498 of the Companies Act 2006.