Disclosure Regarding execution of MOU with OMINVEST Exploring Potential Merger.

Further to the disclosure made by ONIC Holding SAOG (the "Company") on the 4^th of August 2014 concerning a strategic cooperation proposed by Oman International Development and Investment Company SAOG (OMINVEST), the Company would like to disclose that it  has entered with OMINVEST into a memorandum of understanding ("MOU") on 30^th December 2014 to explore the possibility of a merger by incorporation. The initial understanding as per the MOU is that ONIC’s shareholders will be allotted such number of new voting shares in the capital of OMINVEST as equates to a post-merger 33% shareholding in OMINVEST. This percentage is a preliminary indication of value and may be subject to change following due diligence. A binding merger agreement will be negotiated and finalized, subject to completion of mutually satisfactory due diligence.

At the current time, the Company is only able to make a limited disclosure as the parties are bound by mutual confidentiality obligations and continue to be engaged in negotiations. The Company will make a more detailed disclosure as soon as it is in a position to do so.

The Company would like to emphasise that any transaction that may develop from the MOU will be subject to board and shareholder approvals of both parties and receipt of necessary legal, regulatory, and other approvals including approvals required from the Central Bank of Oman, Capital Market Authority, the Ministry of Commerce and Industry and other relevant authorities.