JEDDAH, 26 March 2006 — Al-Sawani Group, a leader in lifestyle and fashion retail, has announced plans to go public.

Al-Sawani, with 500 stores in 13 countries, has selected BMG Financial Advisors to act as an exclusive financial adviser and lead arranger for the initial public offering (IPO). The agreement was signed by Al-Sawani Group Chairman Abdul Kader Hafiz and BMG Chief Executive Officer Basil Al-Ghalayini recently.

Al-Sawani Group has witnessed remarkable growth and success since opening its first department store in Alkhobar in 1976. “In the last 30 years, Al-Sawani has built a strong position and brand name for itself not only in the Saudi retail market, but also regionally,” Abdul Kader Hafiz said. “Our business model in the next few years will depend on further organic growth in Saudi Arabia and extending our reach to all Arab countries through a combination of direct investments and joint ventures,” he added. Currently, the group operates a chain of department stores and retail fashion outlets, offering the very latest in fashion and accessories for men, women and children. Brands featured include Benetton, Guess, MaxMara, Moschino, La Perla, Marina Rinaldi, U2, Betty Barclay and Esprit. Al-Sawani has also developed its own brand names including White & Trendy and Domvs.

Al-Ghalayini highlighted the importance of taking organizational, legal and financial issues and requirements, into early consideration and assessment to assure a successful IPO process.

BMG was one of the first financial advisers to be granted a license by the Saudi Capital Market Authority (CMA).

“Our objective is to restructure Al-Sawani Group, from a family-run business to an institution, and to align the interests of all shareholders in reaching this goal and benefiting them along the way,” Al-Sawani Group Managing Director Mohammed A. Hafiz told Arab News. “To do this we have partnered with BMG as our financial advisers, and are in the process of choosing the legal advisers, reporting auditors and management consultants, all of whom will complement our efforts and become part of our team.” He added that details such as size, price and timing of the IPO would be made public later.

Al-Ghalayini said “BMG selects the most reputable, well- managed companies with high potential for growth to help them in the process of going public under the rules and regulations set up by the CMA, the stock market regulator.”