Kuala Lumpur, 7 April 2008 - The Alliance Financial Group today announced the incorporation of Alliance Islamic Bank, a move that will spur the Group to tap the huge potential in the Islamic banking industry.

“With Alliance Islamic Bank, the Alliance Financial Group will be in a better position to develop its own branding under the Islamic Banking banner. It will also enable us to explore opportunities for strategic tie ups to introduce new Islamic banking and financing products for sustainable long-term growth. This is very much in line with the Group's overall Business Strategic Plan,” said Datuk Lai.

Datuk Lai revealed that Alliance Islamic Bank, will have two major business lines: commercial banking and new businesses. It will be leveraging on existing conventional banking sales and distribution channels to market and promote its products and services. In addition, AIS will also explore new opportunities as provided by the Islamic Banking Act.

“The Group is committed towards developing innovative Islamic savings, wealth management and financing products, offerings and services that demonstrates our understanding of, and commitment to our customers in terms of offering them the best match financial solution according their individual and corporate needs.

Alliance Islamic Bank has, among its portfolio, Malaysia's first Islamic deposit-linked home financing facility - the Alliance i-WISH Home Flexi, which allows Malaysians to own their homes faster; Alliance CashVantage Personal Financing-I, a new two-tiered personal financing that offers 35% lower repayment for the first year.

On the wealth management front, the Alliance Dana Adib Fund and Alliance Islamic Money Market Fund, were ranked top 10 in the world in the Islamic funds category for year 2006 by Eurekahedge, the world's largest independent hedge fund research company.

Alliance Islamic Bank is helmed by its Chief Executive Officer, Tuan Haji Yahya Ibrahim. Prior to his present appointment, Tuan Haji Yahya was the Group Head for Islamic Banking at Alliance Bank Malaysia Berhad (ABMB) and led the project team that was instrumental in the formation of Alliance Islamic Bank. During his 14-year tenure with ABMB, he has held various positions including heading the then Multi-Purpose Unit Trust Berhad and Multi-Purpose Finance Berhad.

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