Kuwait, September 11, 2006: Moody's Investors Service has raised Gulf Bank's short-term foreign currency deposit rating from Prime-2 to Prime-1. The short-term foreign currency deposit ratings of another five Kuwaiti banks have also been raised from P-2 to P-1.

The short-term foreign currency deposit ratings of Gulf Bank, Al Ahli Bank, Bank of Kuwait and the Middle East, Burgan Bank, Commercial Bank of Kuwait and Kuwait Finance House are affected by the action, while the short-term foreign currency deposit ratings of National Bank of Kuwait, already placed at P-1, are unaffected.

Moody's outlook on the A2 long-term foreign currency deposit ratings of all banks mentioned remains positive, in line with the positive outlook on the country ceiling for Kuwait

Gulf Bank's Chairman & Managing Director, Mr. Bassam Y. Alghanim, commented, "The Moody's announcement is positive news for Gulf Bank and for Kuwait's banking industry. We're delighted that Moody's has recognized the strength of Kuwait's economic position which has contributed to our own excellent results."

Moody's stated, "The action follows the continued strengthening of the country's fiscal and external positions, as well as increased internal political stability evidenced by the successful conclusion regarding the succession of the new Amir, together with the country's significantly improved systemic liquidity position.Moody's stated, "The action follows the continued strengthening of the country's fiscal and external positions, as well as increased internal political stability evidenced by the successful conclusion regarding the succession of the new Amir, together with the country's significantly improved systemic liquidity position.

"Combined with continued structural reforms and very large net asset positions, Kuwait's very healthy liquidity position alleviates any potential concerns regarding timeliness of support that may have existed in the past, resulting in P-1 short-term ratings for all of the country's rated commercial and Islamic banks."