Arab Bank Condemns Terrorism, Denies Allegations in Civil Lawsuits Arab Bank is recognized in the international banking community

as being a reliable, transparent, conservative institution, applying the highest standards to its conduct and operations. Throughout its history, the Bank has employed the most rigorous compliance systems available to it, and over the years has been widely respected for its leading position in the industry in the region. Plaintiffs have filed a number of civil lawsuits in the U.S. District Court for the Eastern District of New York under the Anti-Terrorism Act, alleging the Bank provided banking services that caused or contributed to acts of terrorism allegations that are false. Similar cases have been brought against a number of other international banks, including UBS, Credit Lyonnais, Bank of China, American Express Bank LTD, National Westminster Bank, PLC and Commerzbank AG. Arab Banks position is that the accounts and transactions at issue in the cases were routine and lawful, reviewed by the Banks regulators in the jurisdictions in which they were processed, and that the Bank did not cause or contribute to the violent acts described in the complaints. In fact, in the one case against the Bank that has proceeded to final judgment, Mati Gill v. Arab Bank, Senior Judge Weinstein dismissed the suit on summary judgment concluding, on the same evidentiary record as the ongoing cases, that the evidence does not prove that the Bank acted with an improper state of mind or proximately caused plaintiffs injury. Judge Weinsteins holding, which was not appealed, is consistent with the findings of the Israel Defense Forces which, in 2009, stated in connection with its counterterrorism operations in the West Bank and Gaza that it had no information that the Bank or its employees were involved in terrorism. In the course of these proceedings, the District Court inappropriately imposed severe discovery sanctions on the Bank for refusing to breach the laws of the foreign jurisdictions where it operates. The Bank sought waivers of applicable foreign privacy laws from courts, regulators and customers and produced approximately 200,000 foreign banking records which Magistrate Judge Pohorelsky, who oversaw the discovery process, characterized as, a substantial quantity of documents sought by the plaintiffs.The only records that the Bank did not produce were those that it was prohibited to disclose by foreign privacy laws, foreign court decisions and the direct orders of foreign governments. The Bank condemns terrorism and has great sympathy for all victims of terrorist acts. Arab Bank, as part of the global banking community, is committed to fighting terrorist financing.