PRESS RELEASE

State Bank approves PICIC merger with NIB Bank Limited

The State Bank of Pakistan has approved the Scheme of Amalgamation and consequently
the merger of PICIC and PICIC Commercial Bank with and into NIB Bank following the
acquisition of PICIC by NIB on June 28, 2007. The three institutions were merged on
December 31, 2007.

This merger has resulted in NIB Bank becoming the seventh largest bank in the country
in terms of distribution network with 240 branches and total assets exceeding Rs. 185
billion. NIB is now the second most highly capitalized bank in the country with paid up
capital exceeding Rs. 27.5 billion. Apart from commercial banking, NIB through its
subsidiaries and affiliates, is now also a significant player in the asset management and
insurance businesses, thereby providing a wide range of services to its customers.
Temasek Holding remains the single largest investor in NIB Bank. Temasek is the
investment arm of Government of Singapore and manages an investment portfolio in
excess of US$100 billion.

To realize its aggressive growth objectives NIB Bank has developed a segmentation
strategy through which it will offer a unique banking experience to customers in each of
its Corporate, Commercial and Consumer business segments. For this purpose NIB Bank
has organized itself around two specific principles.

First, NIB Bank will be a customer-centric organization, which means that in whatever it
does, the customer will always come first.

Second, there will be a strong focus on efficiency, which means that whatever NIB Bank
does, it will do in the shortest possible time and at the lowest possible cost.

The merger is one step forward in consolidating the banking sector as envisioned by State
Bank of Pakistan and enhancing FDI as per the Government of Pakistan’s objectives. The
strong franchises of the three entities have now been brought together to form a large and
powerful bank. The combined bank will be a top performer delivering a wide range of
financial services through an extensive branch network and is expected to quickly
achieve its vision of ranking amongst the five top banks in the country.

Media Personnel are requested to direct their enquiries to:

Hazooz B Jatoi - 2413995 and 0300-2006622

Ibne Hassan - 0300-8202184
Corporate Communications Group