Kuwait Finance House / Alliance Holdings $500 million Multifamily Fund  

CHICAGO - June 23, 2003 - Kuwait Finance House announced today the formation of a $500+ million Multifamily Fund with an affiliate of Alliance Holdings, LLC of Chicago. Nearly 100% of the Fund's $500+ million of total capitalization was invested at the Fund's inception.

The Fund is designed to acquire and reposition Class B multifamily assets in geographically diverse markets with strong, long-term fundamentals. Alliance Residential Management will provide property management for each of the Fund's properties and, through an affiliate, will effect the cosmetic enhancement and physical upgrades planned for each of the properties.

"We are excited about the formation of the Multifamily Fund and our growing relationship with Alliance ," said Mr. Mohammed Al-Omar, Assistant General Manager of Kuwait Finance House. "This Fund will allow our investors to participate in the long-term recovery of the U.S. multifamily market, while earning a healthy current cash return throughout the life of the investment."

"We are pleased to have formed this relationship with Kuwait Finance House," said Mr. Andrew Schor, Chairman of Alliance Holdings, LLC. The formation of this Fund is a strong statement of our mutual belief in the long-term attractiveness of the multifamily sector."

Arch Street Capital Advisors, LLC, a Greenwich , CT - based real estate advisory firm served as exclusive financial adviser to Kuwait Finance House. Deutsche Banc Securities, Inc. provided acquisition financing to the Fund.

About KFH

Kuwait Finance House is a publicly traded Kuwait-based financial institution with over $8 billion in assets and a global investor with real estate holdings in the U.S. , Europe and the Middle East .

About Alliance Holdings

Alliance Holdings, LLC, through its affiliate, Alliance Residential Management is one of the largest operators of multifamily communities in the United States , with more than 60,000 apartment homes nationwide.