Message from CEO

It makes me very proud to announce to our dear shareholders that Bank Melli Iran Investment Company (BMIIC), as one of the largest listed companies in the Tehran Stock Exchange (TSE) experienced an acceptable performance, for the fiscal year ending March 20, 2006. Despite the overwhelming political and economic atmosphere throughout the country as well as the lack of sufficient return within the TSE, our net profit nevertheless reached as high as Rls1,382,601 million. The volume of shares of the BMIIC exchanged in the stock exchange amounted to Rls733 billion. With a 3,220 billion capital base, the company also succeeded in yielding Rls429 as EPS during this fiscal year, yet a considerable portion of the company's portfolio includes long-term investments that would fructify in the near future. Hence it is not hard to realize just by briefly examining the portfolio, that the financial status of that company over the past five years, including 1384 (2005/06) demonstrates a steady and favorable growth rate. BMIIC holds strategic investments mainly in the following sectors:

Petrochemical Industries
Due to the considerable added value on oil related products that petrochemical industries bring about, this sector is considered as exceeding profitable in an oil rich country such as Iran. As a consequence, BMIIC has dedicated much of its resources towards this lucrative sector. More specifically, as the second largest petrochemical complex in the Country and due to its strategic location in the center of Iran and its diversity of products, the k Petrochemical Company has attracted the attention of BMIIC.

Industrial Contractors
BMIIC has invested in the largest state owned contractor company, known as Sadra, which has successfully become a serious rival for foreign companies.

Non-ferrous Minerals
Due to its comparative advantage and the growing domestic and international dependence cement has been included in BMIIC's investment portfolio. More specifically, the Cement Industrial Development Company (CIDCO), a holding company within this industry which has a track record of efficiency and synergy among cement companies.

Financial Intermediaries
Based on its mission as a conglomerate, and in order to show a strong presence in the TSE, BMIIC has established the National Development Investment Company, which is professionally managing a noticeable portion of the portfolio of BMIIC.

We have decided to broaden our activities from the advantages of the short-term investments in the market, by continuing to invest in profitable industries, establishing specialized holdings based on Iran's specific economic features, as well as adopting development policies. In order to pursue this trend and diversify the company's profit making capabilities, along with securing the interests of the shareholders, this company has made a strategic move to complete specialized holdings and concentrating on industries such as oil, petrochemicals, non-ferrous minerals, power plants as well as construction.

We believe that considering it's relatively short life, BMIIC has come a long way and has made significant achievements, all of which were without doubt, consequences of profound knowledge of the market and due to adopting sound strategies which were implemented by the management team, as well as the capability of the company to benefit from the opportune circumstances by drawing from a wealth of experience and expertise spanning over 14 years. Yet despite these accomplishments, are aware the much of the domestic and international market potentials remain to be explored and with the support of our shareholders, this is precisely what we intend to achieve.

Mohammad Mehrzad
Board Member and Chief Executive Officer