KHC’s interest in Al-Azizia resulted from a private investment in 1998. Al-Azizia is a diversified commercial holding company and its holdings include MEDGULF, which has grown into one of the largest insurance groups in the Middle East and is now a public company. KHC indirectly participates in the new transactions that Al-Azizia continues to identify and execute. Moreover, KHC’s investment in Al-Azizia provided an indirect investment in a diversified regional and international portfolio with an indirect, pre-initial public offering investment in MEDGULF. KHC pursued this investment because it believed that MEDGULF, in particular, had significant growth potential through its main business lines: medical and motor insurance. The KHC Company owns 1,000,000 shares of Al-Azizia, representing an approximately 20 percent interest.

Al-Azizia is a diversified holding company. The table below lists the principal holdings of Al-Azizia as of 31 December 2006.

In 2006, Al-Azizia had EBITDA and net income of SR 91.0 million and SR 75.6 million, respectively. As at 31 December 2006, its total net assets were SR 638.1 million.