Aug. 28--The Private Equity Group of Global Investment House (Global), announced today the completion of the acquisition of a controlling stake in Al Sawani Food and Industrial Supply Company ("Al Sawani" or "the Company"). The announcement came as the Buyout Fund and its associates concluded the legal and regulatory requirements of the acquisition of Al Sawani, a Saudi based retailing giant with over 550 outlets spread across 12 regional countries.

Mr. Omar El Quqa, Executive Vice President at Global commented "We are very proud to announce the completion of this transaction. Our investment today clearly demonstrates our faith in the Company's management and our strong conviction in the Company's future."

Established in 1976, Al Sawani is a forerunner in regional retail, and is among the first GCC businesses which adopted the franchising model. The Company was established by members of the Hafiz Family, who will continue to hold almost 40% of the Company's share capital. Al Sawani currently has 76,000 square meters of retail space through which it retails its portfolio of 36 international apparel and accessories brands including Guess, Benetton, Sfera and Esprit.

"We are very bullish on retailing" Mr. Shailesh Dash, Senior Vice President at Global Investment House said. "Fueled by regional liquidity, and a burgeoning young population, retail in the GCC and the wider MENA region is poised for sizeable growth." On the Private Equity Group's strategy in retailing, Mr. Dash commented "we realize that success in retailing entails more than opening shops and acquiring brands. Mall developers need unique concepts and an integrated multi brand and multi product model, and this is what we aspire to build. Our acquisition of Al Sawani is a step towards realizing this strategy."

Saudi Arabia intends to be among the top 10 competitive nations in the world by 2010 and is expecting multi billion investments into the Kingdom. The population of Saudi Arabia grew at a CAGR of 2.48% during the period 2002 -- 2006 which is one of the highest growth rates in the world. Saudi Arabia has been encouraging both the private and the foreign players to invest and become party to the country's growth with the most recent initiative been the signing of the WTO agreement.

Retail spending in Saudi Arabia is forecasted to increase by an estimated 15% by 2008 with Jeddah poised to offer over 750,000 square meters and Riyadh over 600,000 square meters of shopping space by 2009.