PRESS RELEASE

CONSOLIDATED ACTIVITY IN 2004 RELATIVE TO 2003

- US$ 10.5 billion in total assets, rising by 47.7%. - US$ 8.8 billion in total deposits, rising by 46.7%. - US$ 71.3 million of consolidated profits, rising by 31.5%. - US$ 686 million of shareholders’ equity, rising by 48.7%.

LL billion Dec-03 Dec-04 Change Growth Assets 10,691.75 15,794.16 5,102.41 47.72% Customers' deposits 9,039.82 13,259.04 4,219.22 46.67% Fiduciary deposits+custody accounts+AUMs 3,974.99 5,058.69 1,083.70 27.26% Assets+Fiduciary deposits+custody accounts+AUMs 14,666.74 20,852.85 6,186.10 42.18% Shareholders' equity 695.14 1,033.75 338.61 48.71% Net profits 81.74 107.46 25.72 31.47%

The unaudited profits of Bank Audi Sal – Audi Saradar Group rose to LL 107.5 billion (US$ 71.3 million) in 2004, growing by 31.5% relative to 2003. The Group’s policy of activity diversification and the significant growth in assets were at the roots of such performances.

Driven by its strategies of organic growth and consolidation, the Bank registered a growth in assets of 47.7% relative to December 2003. Assets reached US$ 10.5 billion in 2004 and US$ 13.8 billion when accounting for all assets under management (fiduciary deposits, security accounts and assets under management). The organic growth in assets, before consolidation with Saradar Group, amounted to 25.7%, one of the highest levels in the sector.

The growth in assets was mainly driven by customer deposits, which grew by 46.7% in 2004, the equivalent of LL 4,219 billion (US$ 2,799 million). In fact, customer deposits rose from LL 9,040 billion in 2003 to LL 13,259 billion in 2004, raising our market share from 12.3% to around 16.0%. The organic growth in deposits amounted to 20.6%, the equivalent of LL 1,862 billion (US$ 1,235 million), which corresponds to 20.1% of the overall deposit growth in the sector. This performance is realized at an average cost below that of direct peers as shown by their published annual results.

The growth in assets and earnings was not realized at the detriment of the financial standing of the Group. In fact, the significant growth in deposits was mainly placed in liquid assets. The overall liquidity ratio reached 88.2% of customers’ deposits. Primary liquidity in FX reached US$ 3.17 billion (including cash and deposits in banks and excluding eurobonds), the equivalent of 51.5% of FX deposits. At the level of asset quality, the ratio of net doubtful loans to total gross loans reached 2.9%. The overall loan loss provision charge amounted to LL 23.2 billion in 2004. In addition, the Bank has proceeded during the year to total write-offs for US$ 70 million. These developments translate the permanent efforts for improving asset quality.

The network expansion along with the activity diversification undertaken over the last few years ensure henceforth a more equilibrated breakdown of net financial income over net interest income and non-interest income. Non-interest income reached 44.8% of net financial income in 2004, reinforcing the immunity against adverse interest rate developments.

At end-December 2004, the Bank’s shareholders’ equity reached LL 1,034 billion (US$ 686 million), one of the highest capitalization levels in the sector.

The results of the Group mirror the economic conditions of the country, characterized by a slight improvement in investment demand, mainly foreign, within the context of an easing of monetary and financial markets, despite the pressures observed starting September to beginning-December. The IMF forecast real GDP growth at 5% in 2004. In this context, banking activity has progressed significantly, as reflected by the 12.6% growth in aggregate deposits. The latter grew by US$ 6.2 billion, raising the growth of the past couple of years to US$ 12.2 billion. Lebanese banks which recorded high asset growth rates, were able, through a size effect, to partly offset the negative impact of the spread contraction on their net earnings.

Supported by these performances, the Group has consolidated its universal banking profile covering a large spectrum of banking activities: commercial and through Bank Audi sal and Bank Audi Saradar sa, through Audi Saradar Private Bank sal and Bank Audi Suisse sa, corporate and through Audi Saradar Investment Bank sal and activities through Libano-Arabe sal. The strategy of the Group in the local market rests on pursuing the efforts of extending means and developing products at the service of its customer base in particular and ’s economic development in general.

On the other hand, the assets of the Group representing 54% of Lebanon’s GDP ensure henceforth a regional dimension supporting its expansion strategy outside Lebanon. Activity was officially launched in Jordan, with six out of the ten targeted branches already operational. The process of finalizing the demand for a license in Syria has well advanced, with the launch of activities targeted in the first half of 2005. Prospecting for new high- potential regional markets is underway, with finalization outlook plausible in the current year.

Beirut, January 31st, 2005