29/10/07 - Arcapita Announces Sale of South Staffordshire PLC to Alinda

London - 29 October 2007 - Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, announced today that it and its affiliates have sold South Staffordshire Plc, the UK based water company, to the Alinda Infrastructure Fund, a USD 3 billion institutional fund managed by Alinda Capital Partners LLC, an independent private investment firm, for an undisclosed amount.

Arcapita acquired South Staffordshire in November 2004. Since then, Arcapita has worked closely with the management team in building the business and this is particularly reflected in the growth of the three non-regulated businesses, which include the establishment of the Echo outsourced customer contact management operation in Belfast and of the specialist Water & Wastewater businesses serving the UK water utility industry.

South Staffordshire Water has been consistently ranked in the top three in Ofwat's performance assessment for the past seven years and has 99.97 per cent compliance with EU water quality standards.

Qaisar Zaman, Arcapita's European Head of Asset-Based Investment, commented:

"We have been very pleased to have owned South Staffordshire and to have contributed to its growth. We are particularly proud of the high levels of service and quality it has achieved. It is one of the best performing water companies in the UK with one of the lowest household bills for customers."

Chris Beale, Managing Partner of Alinda, said:

"This is an excellent strategic fit for us. South Staffordshire is a well established business with an outstanding operating history, a reputation for customer excellence, a strong management team and dedicated employees. This transaction will be seamless for South Staffordshire's customers, who will continue to receive the same high quality and service."

Dresdner Kleinwort acted as financial adviser to Arcapita and RBC Capital Markets acted as financial advisor to Alinda.

For further information, please contact:

Arcapita Tim Doyne Tel: +973 17 218333 Mob: +973 39 929009

Alinda Chris Beale Tel: +1 (212) 838-6403

Tulchan Communications David Trenchard Tel: +44 (0)20 7353 4200 Paul Harris


About Arcapita Bank

Headquartered in Bahrain with offices in Atlanta, London and Singapore, Arcapita's four principal lines of business are corporate investment, real estate investment, asset-based investment and venture capital. To date, Arcapita has completed 61 transactions with a total value of almost USD 20 billion and has an equity capital base in excess of USD 950 million. Arcapita's mission is to provide innovative and distinctive investment opportunities that generate superior risk-adjusted returns whilst adhering to Islamic principles.

Full details of Arcapita can be found at www.arcapita.com

About South Staffordshire Plc

South Staffordshire Plc ("South Staffordshire"), a United Kingdom based water utility group, owns regulated operations in the water sector ("South Staffordshire Water"), together with complementary non-regulated businesses.

South Staffordshire Water, the principal subsidiary of South Staffordshire, supplies water to a population of 1.25 million in the British Midlands, covering an area of 1,500 square kilometers, as well as supplying water to 36,000 commercial customers. South Staffordshire also owns three water related non-regulated businesses. Echo provides outsourced customer contact management and billing activities for a number of water utility customers and develops and implements customer contact and billing software for the UK water industry. Water and Wastewater Services provides a range of specialist water and sewerage infrastructure maintenance services to the UK water sector and other owners of water related infrastructure Aqua Direct is a natural spring and mineral water business.

Full details of South Staffordshire can be found www.south-staffordshire.com

About Alinda

Alinda Infrastructure Fund is a leading independent infrastructure fund that invests infrastructure assets which provide essential services to communities, governments and businesses. To date, Alinda has made investments in a wide range of infrastructure assets in Europe and North America, including gas utilities, roads, airports, rail, and water tanks, with an aggregate transaction value of USD 5.7 billion.

Full details of Alinda can be found at www.alinda.com

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