Kuwait, September 19, 2006: Moody's Investors Service has placed Gulf Bank on review for a possible upgrade of its A2 long-term foreign currency deposit rating. The A2 ratings for six other Kuwaiti banks are also on review.

This rating action follows Moody's placing Kuwait's long term foreign currency deposit ceiling of A2 on review for possible upgrade to reflect the improvements in the country's economic and financial situation. The financial strength ratings of the banks are not affected by this rating action.

Gulf Bank's Chairman & Managing Director, Mr. Bassam Y. Alghanim, commented, "We are very pleased to learn of the rating review and we look forward to the outcome of Moody's deliberations. A rating upgrade would be excellent news for Gulf Bank and for the other banks which have also been included in the review process."

Moody's notes that the foreign currency deposit ratings of the seven banks had been set at Kuwait's foreign currency deposit country ceiling of A2 based on the banks' fundamental strengths, as well as the strong likelihood of support from the Kuwaiti authorities, should the need arise. According to Moody's, the ratings of these seven banks will be evaluated to determine their capacity to move up following an upgrade of Kuwait's country ceiling.

The review affects the long term foreign currency deposit ratings for Gulf Bank, National Bank of Kuwait, Kuwait Finance House, Commercial Bank of Kuwait, Al Ahli Bank, Burgan Bank and Bank of Kuwait and the Middle East.

Earlier this week, Moody's raised short-term foreign currency deposit rating for Gulf Bank and five other Kuwaiti banks from Prime-2 to Prime-1.