ALL to issue new shares above book value

Alliance Reinsurance Pcl (ALL) will call on EGM on 8 August 2006 to examine the Board’s proposal for an increase in the Company’s issued share capital, through the issue of 6.8 mln shares of nominal value

of 10 cent each.

The issue price for the issue will equal to 90% of the weighted average of the stock over the last 30 trading days preceding the issue date. However, the price should be 60% higher of ALL’s book value per share, which at the last count amounted to CYP 0.398.

The proceeds from the above issue will be used to finance further expansion of the Company’s activities through strategic alliances and acquisitions of entities in the insurance/reinsurance sector.