Quarterly Update Dec 2007

Epicure Qatar Equity Opportunities 21 January 2008 Epicure Qatar Equity Opportunities plc Investment Advisers Report - Quarterly Update to Quarter End December 2007 Investment Objective Epicure Qatar Equity Opportunities plc. ('the Company') was established to capitalise on attractive investment opportunities in Qatar and the Gulf Cooperation Council ('GCC') region, due to the economic boom being experienced in the area. The Company seeks to invest in quoted Qatari equities listed on the Doha Stock Market ('DSM') in addition to companies soon to be listed, with a possible allocation of up to 15 percent in regional GCC listed companies. The Investment Adviser intends to invest using a top-down screening process, as well as a fundamental industry and company analysis, and does not intend to benchmark itself to any regional index. Activities During the Quarter The Investment Adviser is pleased to report that on popular demand a Qatar Equity Conference was successfully organised in November 2007 in Doha, which focused on providing the international investor with a first hand flavour of the Qatari economic story. The conference received a tremendous response from investors. The Investment Adviser would like to take this opportunity to thank the QIA and the leading Qatari companies which presented at the conference, and also to thank investors for their ongoing commitment to the Company. In the fourth quarter 2007, the Company successfully completed a secondary issue of 76.17m shares at a price of US$1.1170 per share, raising additional capital of US$85.08m. This brings the total funds raised since inception to US$256.44m. Based on the closing price of December 27 2007, the NAV had reached US$1.1387 per share, up 18.11 percent since inception. The Doha stock market experienced strong performance in 2007, displaying an annual return of 35.48 percent. Strong fundamentals, in addition to renewed domestic and international interest, have helped the DSM and other GCC markets post excellent returns for 2007. Several notable trends during the fourth quarter 2007 have included: (i) Revaluation of regional currencies During the fourth quarter the Investment Adviser witnessed increasing speculation that regional currencies would be revalued upward against their Dollar peg, by anywhere in the region of 5 to 30 percent. This came to a head during the GCC summit in early December 2007, as it was expected that the countries concerned would reach consensus on revaluation. Ultimately there was no outcome, but the Investment Adviser believes that such a discussion may arise again, especially if the US undergoes further pressure against global currencies. The Company would benefit from any such revaluation. ii) Leverage Leverage is being used by companies to finance their growth, both for the purpose of acquisitions, and as a quasi-hedge against any revaluation of the currency. Despite the credit crunch, the Investment Adviser has witnessed the ability of companies to raise money at reasonable cost. (iii) Increasing geographical reach Either through the establishment of direct operational capabilities or through acquisitions, the Investment Adviser is increasingly witnessing companies strengthen their sustainability and growth prospects by increasing their geographical reach. (iv) Reporting season During the first quarter of 2008, all the companies on the DSM will report their full year earnings for 2007. The anticipation of stock and cash dividends are expected to be the drivers of performance over the coming months. (v) Impact of the credit crisis The Investment Adviser does not believe that the sub-prime effects experienced by GCC financial institutions will match those being felt across the rest of the world. Most of the financial institutions in the GCC are relatively regionally focused in their credit exposure horizons. It is the belief of the Investment Adviser that any exposure would be immaterial in the larger scheme of the economic growth in the region. Industry Breakdown The Company's investments are focused on those industries which the Investment Adviser believes will directly benefit from the local expansion underway in the country. The additional capital which the Company raised in December 2007 has been substantially deployed in a manner similar to the initial investment allocations. The remaining capital of sixteen percent is expected to be invested during the month of January. The Company is heavily weighted towards the financial services industry, with 35 percent of its overall investment in the banking sector. The services industry is broadly defined and includes companies in telecommunications, utilities and other sectors. The Company's exposure to the closely followed real estate sector is subdued due to current valuations and execution concerns (in the opinion of the Investment Adviser). Market Values as of 31st December 2007 Source: Qatar Insurance Company S.A.Q. The top five investments of the Company constitute 39.88 percent of the gross funds raised and 43.0 percent of NAV. Geographical Breakdown Since the last quarterly report to end September 2007, the Company has received permission to trade in the UAE and Kuwait markets, and has actively invested in eight companies listed on these markets. At at 31 December 2007, investments outside Qatar constitute 10.13 percent of invested funds, distributed across eight companies. The UAE market has had a good run with a year to date return of 43.8 percent, with Kuwait being a laggard at 24.7 percent year to date. Important News Flow Additions to the Doha Securities Market During the month of December 2007, two new companies were listed on the Doha Securities Market, taking the total number of companies listed to forty. The recent additions were the Qatar Oman Company for Investment and Aamal Holding Company. Portfolio Companies - update Qatar Islamic Bank The company announced that Al Jazeea Islamic, 80 percent owned by the QIB, has started the initial steps required to transform into a finance company. The company is in talks with potential investors who have expressed strong interest in buying equity. Industries Qatar Qatar Fertilisers, a subsidiary company of Industries Qatar, has announced that the company signed a letter with Snamprogetti and Hyundai for the construction of the QAFCO-5 expansion project. The total estimated cost of the project will be circa US$3.2bn and the scheduled project completion date is 2010. QAFCO-5 facilities will include an ammonia plant and a urea plant both with a daily production capacity of 3500 MT, and a number of support utilities. QAFCO-5 is set to bolster Qatar Fertilisers' position as a world-class producer of fertiliser and the world's largest single site urea producer. Masaf Al Rayan The company has received all the regulatory permissions required for raising the ownership limit for non-Qataris in the bank's capital from 31 percent to 49 percent. The company has bought a 20 percent stake in Kirnaf Installment Company, a 1.2bn Saudi riyals consumer finance company that will offer services such as home, car and goods financing to consumers. Qatar Telecom The company successfully closed a US$3 billion syndicated term loan facility. The facility will be used to refinance the company's existing US$2.5bn bridge loan signed in March 2007 to finance the acquisition of Wataniya. The five year term loan carries an initial margin of 0.65% per annum over LIBOR for the first twelve months and thereafter pricing is tied to a leverage grid, which is expected to reduce financing costs. Al Khaliji Bank The company signed the Sale and Purchase Agreement (SPA) with BLC Bank (France) to acquire the banking business conducted by BLC in Abu Dhabi, Dubai Sharjah and Ras Al Khaimah. The transaction is subject to the regulatory approval of the Central Bank in Qatar and the UAE. Barwa Real Estate The company recently signed a US$700m, one year revolving Islamic loan. Proceeds of the loan will be used to finance the expansion of Barwa and its ongoing projects. The company recently proposed to increase its capital by QAR 500m to QAR 2.5bn. The increase would be through a rights offering. The proposal awaits ministry and shareholder approval. The company announced that Barwa Capital (UK) limited, which is 60 percent owned by Barwa Real Estate, was recently granted a license by the FSA in London. The company will now be in a position to conduct investment business into and from the UK. Epicure Qatar Equity Opportunities plc NAV Update NAV at launch US$ 0.96 NAV as at 27 December 2007 US$ 1.14 Inception Date 31 July 2007 The NAV is estimated net of fees and expenses every week and announced through the regulatory news service of the London Stock Exchange. As at 27 December 2007 Market Price -Shares US$1.15 Market Price -Warrants US$0.60 -------------------------------------------------------------------------------- Key Features Domicile Isle of Man Shares Issued 247,527,523 Warrants Issued 34,271,000 Maturity Continuation vote at 2012 Annual General Meeting Year End 30 June Management Fee 1.25% of NAV Performance Fee The performance fee is 20% of the of the increase in Adjusted Net Asset Value per Ordinary Share above the Target Net Asset Value per Ordinary Share, subject to the achievement of two tests (i) the year end Adjusted Net Asset Value per Ordinary Share is greater than the High Watermark and (ii) the year end Adjusted Net Asset Value per Ordinary Share exceeds the Target Net Asset Value per Ordinary Share during the relevant Performance Period. The Target Net Asset Value per Ordinary Share for the first performance period is the US$1 placing price increased by the hurdle rate of 8% per annum. For further details, please refer to the Company's admission document. -------------------------------------------------------------------------------- Investment Manager Epicure Managers Qatar Limited Investment Adviser Qatar Insurance Company S.A.Q Administrator Galileo Fund Services Limited I.O.M. Custodian Anglo Irish Bank Corporation, I.O.M. PLC Nominated Adviser and Broker Panmure Gordon (UK) Limited Auditor & Tax Adviser KPMG I.O.M. Legal Adviser Stephenson Harwood -------------------------------------------------------------------------------- Ordinary Shares ISIN IM00B1240704 SEDOL B124070 Bloomberg ticker EQEO Valoren 3268997 Warrants ISIN IM00B1240G96 SEDOL B1240G9 Bloomberg ticker EQEW Valoren 3271492 Exchange Rate US$1.00=QR3.64 Webpage: www.epicure-qatarequity.com Contacts Epicure Qatar Equity Opportunities plc Leonard O'Brien T: +41 (22) 908 1190 Nominated Adviser & Broker Panmure Gordon (Broking) Limited Moorgate Hall London, EC2M 6XB T: +44(0) 207 459 3600 Administrator & Registrar Galileo Fund Services Limited Jubilee Buildings Victoria Street Douglas Isle of Man, IM1 2SH T: +44(0)1624 692600 F: +44 (0)1624 692 601 E: enquiries@galileofs.co.im Custodian Anglo Irish Bank Corporation (I.o.M.) PLC Jubilee Buildings Victoria Street Douglas Isle of Man, IM1 2SH PR/ Media Contact Tim Draper M Communications Tel: +44 20 7153 1267 Marylene Guernier M Communications Tel +44 20 7153 1267 1 Ropemaker Street Ninth Floor London EC2Y 9HT www.mcomgroup.com Disclaimer The contents of this document have been prepared by Qatar Insurance Company S.A.Q as Investment Adviser to the Epicure Qatar Opportunities Fund PLC ('the Fund'). This document has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of the investment Adviser or the Fund to any person to buy or sell any security or investment product. Any reference to past performance is not necessarily a guide to the future. The information and analyses contained in this publication have been compiled, or arrived at from sources believed to be reliable, but the Investment Adviser does not make any representation as to their accuracy or completeness, and does not accept liability for any loss arising from their use. The investments discussed in this report may not be suitable for all investors. and are provided for information purposes only. The ordinary shares and warrants in the Fund have not been, and will not be, registered under the United States Securities Act of 1933 as amended (the 'Securities Act') or qualified for sale under the laws of any state of the United States or under the applicable laws of any of Canada, Australia, Republic of South Africa or Japan and, subject to certain exceptions, may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) or to any national, resident or citizen of Canada, Australia, Republic of South Africa or Japan. None of the Fund, the Manager or any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss, however arising, from any use of such information or opinions. Static Information for Second Page- B Master Contacts Epicure Qatar Equity Opportunities plc Leonard O'Brien +41 (22) 908 1190 Nominated Adviser and Broker Panmure Gordon (Broking) Limited Moorgate Hall 155 Moorgate London EC2M 6XB Administrator and Registrar Galileo Fund Services Limited Jubilee Buildings Victoria Street Douglas Isle of Man IM1 2SH T: +44(0)1624 692600 F: +44 (0)1624 692601 enquiries@galileofs.co.im Custodian Anglo Irish Bank Corporation (I.O.M.) P.L.C. Jubilee Buildings Victoria Street Douglas Isle of Man IM1 2SH -------------------------------------------------------------------------------- Address for Last Page Epicure Qatar Equity Opportunities plc Registered Office Jubilee Buildings Victoria Street Douglas Isle of Man IM1 2SH This information is provided by RNS The company news service from the London Stock Exchange

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