Key Highlights

Tarek Sultan, Chairman and Managing Director, commented:

"2009 was a mixed year for Agility. On one hand, the company was able to report solid operational profits, continue to grow its emerging market footprint, and attract a number of important new customers around the world. This is particularly significant given a global financial crisis that hit the logistics industry hard overall. On the other hand, Agility is facing a number of challenges, including the slower-than-expected recovery from the global economic recession, the troop drawdown in Iraq, and the ongoing legal issues.

I see these challenges as a catalyst for change and an opportunity to build a new discipline and emerge as a more flexible, efficient and competitive Agility.

Agility is differentiated by a strong emerging market platform, specialized logistics capabilities, and complementary businesses that provide a competitive advantage as well as operating efficiencies. Our path forward will be focused on improving our return on capital and managing the balance sheet for the best interest of our stakeholders. This will be achieved by: growing revenue organically, reducing our costs prudently, and maximizing yields on core operating assets. We believe these actions will leave us well placed for 2010 and beyond.”

Board of Directors recommendation:

Agility’s Board of Directors met and has recommended distributing cash dividends of 40% of par value (40 fils per share).

Financial Highlights:

4th quarter of 2009

• - The fourth quarter witnessed an increase in revenues by 1.5% to KD 470.685 million compared with the fourth quarter of 2008, and despite the economic crisis Agility was able to conclude a year marked with solid performance
• - Net revenue decreased by 4.5% to KD 159.7 million compared with the same period in 2008.
• - Net income for Q4 was KD 40.9 million, an increase of 21.8%, compared to the same period of 2008. Earnings per Share stand at 40.6Fils, a 20.8% increase over the same period in 2008.

Full Year 2009

• - Revenues declined by 7% as compared to 2008 mainly on account of the economic downturn which saw declines in freight volumes within our Global Integrated Logistics business.
• - Operating profits increased by 5% compared to 2008 reaching KD 168.8 million on account of a healthy net revenue margin and various cost control measures. On the cost side staff costs reduced by KD 6.5 million as compared to 2008.
• - Agility reported an increase in net profit reaching KD 156.4 million, an increase of 11% as compared to 2008 which reflects and EPS of 155.9 fils for the year, an increase of 13% as compared to 2008.
• - Net Debt as of December 31st 2009 was KD 39 million, a reduction of KD 122 million or 76% as compared to 2008.
• - Due to the inherent uncertainty surrounding the US Department of Justice lawsuit against The Group, no provision is considered in the accompanying consolidated numbers

Business Group Highlights

Agility’s commercial logistics business group, Global Integrated Logistics (GIL), faced the brunt of the economic downturn, yet performed reasonably well under challenging marketing conditions. As the economic recovery in 2010 will be uneven, GIL will continue to manage the business with a combination of cost control and growth initiatives. Some GIL highlights from 2009:

• - Revenue decrease of 13% or KD 1,036 million due to the ongoing economic crisis, however net revenues increased by 1.85%
• - Major customer wins, including Nokia, Mattel, Formula One Management UK and Yas Marina Circuit
• - Expanded network in emerging markets through new facilities in Malaysia, Singapore and Saudi, and new offices in Poland and Ukraine.
• - New acquisitions in Brazil and Mexico, and a signed MOU with GWC, the Qatari based logistics company, to merge operations cost and cash management initiatives to align local business levels with customer requirements

Agility’s government contracting business, Defense & Government Services, won several significant contracts and built a healthy backlog in 2009. Some DGS highlights from 2009:

• - Revenues increased by 4% reaching KD 715.5 million, driven by new wins in early 2009 and operational impacts of business won in 2008

Agility’s Infrastructure companies had a solid year and were less impacted by external events.

• - Infrastructure division reported revenues of KD 72.6 million, a decrease of 4% compared to full year 2008
• - Real estate, the largest business within Infrastructure, witnessed an increase of in revenues of 6.7%reaching KD 27.7 million compared to the full year 2008

Legal Update

PWC continues its discussions with the US government with the view to resolving the current legal cases with the US Department of Justice. However, there is no guarantee that the parties can reach a mutually agreeable settlement.

Good Corporate Citizen

Agility gives back to communities around the world, through volunteer efforts, a disaster response program and sustainability efforts. Agility continued to support local communities in 2009, executing over 160 local community projects in over 30 countries. The company also mounted two simultaneous disaster response operations in Asia helping its partners set up a humanitarian supply chain that reached millions of affected people with food and medicine.

2010 and Beyond

Tarek Sultan commented, “It has been a tough year, for the global economy, for the logistics industry, and for Agility. Yet we have performed well in these challenging times by focusing on reducing costs, including a reduction in our headcount, whilst driving organic growth through a number of important new contracts.

We would like to thank our shareholders, our customers, and our employees for their support and commitment throughout this difficult year.

Going into 2010, we will continue to leverage our global network and strong presence in dynamic emerging markets, our niche specialties, and our culture of personal service and going above and beyond. We will also build on the work of 2009 to deepen and accelerate our cost, cash, and capital management strategy to show stronger returns on the capital already invested in the business.

Our focus is to realize the return on that investment. We see the challenges facing the company as a call to action, to build an even stronger, more flexible, efficient, and competitive Agility.”