BNP Paribas Islamic Fund -Equity Optimiser (a sub-fund of BNP Paribas Islamic fund)

1. BNP Paribas Islamic Fund -Equity Optimiser(a sub-fund of BNP Paribas Islamic fund) March 2007

2. Table of contents • Product Highlights 3 • Investment Process 7 • Performance 13 • Appendices 17 • Sharia Supervisory Committee • BNP PAM Structured & Indexed Investments

3. 1 PRODUCT HIGHLIGHTS

4. BNP Paribas Islamic Fund • BNP Paribas Asset Management launches a thematic umbrella fund which is Sharia compliant • One of the first Sharia compliant Luxembourg Fund UCITS III, part I • A fund open to all investors • The activities of the fund shall at all times be compliant with Islamic principles controlled by aSharia Supervisory Committee. This committee is composed of well-known and highly commended scholars (refer to Appendices slide 18) and provides validation of the set-up «Fatwa», continuous supervision and adjudication of the fund. • BNP Paribas Asset Management presents its first sub-fund “BNP Paribas Islamic -Equity Optimiser”, anopen-ended equity fund optimising a major Islamic index (Dow Jones Islamic Market Titans 100 Index) retaining only high-dividend-paying stocks among the world’s largest global companies.

5. Access to the most liquid Islamic stocks…. • A positive environment for global equity markets: • Low inflation, relatively low valuations and robust M&A activity are all positive factors. Furthermore, the economic activity is slowly becoming more balanced across the major regions. • A reliable investment universe: The Dow Jones Islamic Market Titans 100 Index • This DJ Islamic Market Titans 100 index consists in the 100 largest international companies (50 from USA, 25 from Europe and 25 from Asia Pacific) in terms of float-adjusted US market capitalisation, which are all Sharia compliant. As such, the index is designed to benefit from the potential growth of the global economy. No. of companies by sector within DJ Islamic Market Titans 100 Index No. of companies by sector within the optimised basket (30 stocks) Due to the criteria based upon the Islamic principles and the market capitalisation, the sectors that represent the index are currently limited. Source: Dow Jones. Composition as of the end of September 2006

6. …delivering the highest dividend yield • A new investment concept: “high dividend stocks” chosen among 100 blue-chip stocks of the Index • Companies with high dividend distribution policy have experienced an interesting increase of their stock price over the last few years • Thanks to high dividends, those stocks tend to be better supported even in a bearish market environment • Generating strong cash flows is a factor for quality companies •  A suitable investment for investors looking for capital gains over medium to long term • Index composition as of the end of December 2006 • A highly disciplined and transparent investment process • Stocks are objectively and systematically selected from the base index components then carefully supervised by experienced fund managers. DJ Islamic Market Selection of DJ Global • The Dividend Yields from the selection of 30 stocks are relatively high, compared to: • the DJIM Titans 100 index (1.84%) • the non-Islamic Index such as DJ Global Titans 50 (2.15%) Titans 100 30 stocks* Titans 50 Average Dividen Yield 2.99% 1.74% 2.16% Max Dividen Yield 5.09% 5.09% 5.09% Min Dividen Yield 1.59% 0% 0% Source: Bloomberg *Selection of 30 stocks within the DJM Titans 100 index Access to the global equity market, optimising performance, all within the Islamic principles * Please refer to page 9 for the dividend yield calculation method

7. 2 INVESTMENT PROCESS

8. What are sharia guidelines in a mutual fund? • Particular investment guidelines compliant with UCITS III • The fund cannot pay or receive any interest • The fund will neither invest in fixed income assets nor money markets instruments • The fund will not invest in equity securities which relate to any of the following sectors: • Conventional banking / life insurance • Alcohol / tobacco • Gaming / leisure • Gambling • Biotechnology companies involved in human / animal genetic engineering • Arms manufacturing • Pork production

9. A transparent annual selection process From the universe of the Dow Jones Islamic Market Titans 100 Index, we select at the end of September every year, 30 stocks that have distributed the dividend having the highest yield over the previous year. DJ Islamic Market Titans 100 Index 100 large cap companies whose activities comply with Sharia guidelines Basket: 30 companies with the highest dividend yield The dividend of each stock will be reinvested. • Each stock is equally weighted within the stock basket on the annual adjustment day (the last business day in September of each year) • The selected 30 stocks compose the basket for the year to come, until the next annual adjustment day. If one stock is no longer included in the DJ Islamic Market Titans 100 Index, the basket is rebalanced (please see on page 11)

10. Composition of the basket as of the end of December 2006 Source: Dow Jones

11. Exceptional rebalancing rules In order to comply with the investment restrictions of Luxembourg fund, we will adjust the equity basket, whenever these investment rules are broken: Whenever one stock represents more than 9% of the fund’s net assets. Whenever the total value of stocks exceeding 5% of the fund’s net assets globally represents more than 39% of the fund net assets In such a case, a part of the most valuable stock will be sold and its proceeds will be invested in the least valuable stock within the basket. • Whenever one stock is no longer included in the DJ Islamic Market Titans 100 Index • The relevant stock will be sold and its proceeds will be invested in the 31st stock that was defined at the time of the annual adjustment process.

12. Codes : Dividend policy:Capitalisation Subscription : Daily NAV calculation date : Daily Initial, minimum subscription unit and management fee: Subscription fee:maximum 5%, not acquired by the fund Redemption fee:no charge Key Features * In the current prospectus, the minimun holdings for Privilege and Institutions categories are EUR 1 million and EUR 3 millions respectively; they will be corrected in the next version of the prospectus.

13. 3 PERFORMANCE

14. BNP Paribas Islamic Fund: An excellent start BNP Paribas Islamic Fund vs. DJ Islamic Market Titans 100 5th April 2006 – 31st January 2007 Performances stated are net of fees. Past performance is not a guide to future performance and the value of investments in the fund may go down as well as up. Investors may not get back the amount they originally invested.

15. The result of the back test Historically outperforming the DJ Islamic Market Titans 100 Index (from 30/09/1996 to 05/04/2006) (Net of 2% p.a. fee, gross of withholding taxes) Better performance with less volatility over the entire back testing period • Except the bullish period between 1998-2000, the selection of 30 stocks has clearly outperformed the DJIM Titans 100 index. • The Sharpe Ratio: The higher the Sharpe Ratio, the better the fund's historical risk-adjusted performance. Source: Bloomberg Past performance is not a guide to future performance and the value of investments in the fund may go down as well as up. Investors may not get back the amount they originally invested. Hypothetical results have certain inherent limitations (e.g. they are designed with the benefit of hindsight). Hypothetical returns are not indicative of actual results that would have been achieved over the same period for the investment strategy or that will be achieved in the future.

16. The back-test was conducted: From September 1996 to the fund launch date to compare with DJ Islamic Market Titans 100 Index. The comparison between the optimised basket and the DJIM Titans 100 index over the same period is based on the following parameters: The basket performance with Net Dividend Reinvested For the DJIM Titans 100 Index, we incorporated a hypothetical dividend yield of 2% reinvested The stock basket is based on the Index composition as of 31 January 2006, applied for the whole period of back-tests, i.e. the basket was rebalanced annually to select 30 biggest dividend payers for each corresponding year. The back-test did not take into account minor exceptional rebalancing that might have taken place, nor the withholding tax on the dividends of the holding stocks imposed by Luxembourg regulation. The results are net of the 2.0% fee per annual (the maximum Total Expense Ratio). The method of the back-test

17. 4 Appendices - Double expertise Sharia Supervisory Committee BNP PAM Structured & Indexed Investments

18. Dr. Nizam Yaquby - Bahrain – Independent Sharia Consultant, Manama, Bahrain Dr. Yaquby is a prominent Islamic scholar educated at McGill University in Canada and the University of Wales. He has studied under the guidance of some of the world's pre-eminent Islamic scholars. He has over two decades of experience in teaching Islamic business subjects and has authored several research papers on Islamic banking. He serves as a Sharia advisor to a number of international financial institutions and insurance including, The Dow Jones Islamic Index. Dr. Abdul Sattar Abu Ghuddah – Syria (based in Saudi Arabia) Dr. Abu Ghuddah is an Islamic scholar educated in Damascus and Al Azhar University, Cairo. He sits on the Sharia Board of several financial institutions around the world, including that of the Dow Jones Islamic Index. Dr. Abu Ghuddah has researched and published numerous papers on Islamic banking. He is a member of the International Islamic Fiqh Academy as well as the Islamic Accounting & Auditing Standards Board. Dr. Mohamed Daud Bakar – Malaysia Dr. Daud Bakar is an Islamic scholar educated at the University of Kuwait and at the University of St. Andrews in Scotland. Dr. Daud Bakar is the Deputy Rector and an Associate Professor in Islamic Law, at the International Islamic University in Malaysia. He has published a considerable number of research papers and has participated in numerous seminars and conferences on Islamic banking and finance. Dr. Daud Bakar is also, a Sharia consultant and advisor for several financial institutions around the world including, Bank Negara Malaysia and the International Islamic Financial Market in Bahrain. The Fund’s Sharia supervisory committee3 recognised scholars and their biographies

19. Quantitative Analysis 33 Professionals Structuring Management Business Solutions Business solutions Marketing and Client Support Legal Department London Paris Luxembourg Risk Department Paris BNP Paribas Islamic Equity Optimiser Managed by the Structured & Indexed Investment Team of BNP PAM in Paris BNP PAM Structured & Indexed Investments: a significant track record • A dedicated organisation: • 16 years experience in structured & indexed investments. • A team of 33 specialists dedicated to structured & Indexed investments (4 located in Hong-Kong), which is supported by the legal and risk control department. • An open architecture which allows access to our long experience and services for our clients. • Validated BNP PAM Asset Manager rating of AM2+ by Fitch Ratings. • A high and steady increase of the AUM since 2000: • 186 Structured & Indexed funds managed • € 19.5 bn of AUM (as of June 2006) • In 2005, 2/3 of structured funds launched fornon-resident investors (mainly in Asia)

20. Disclaimer Marketing: This document has been produced for informational purposes only and does not constitute, is not part of and must not be considered as an offer to sell or subscribe, or as a solicitation of any kind to buy or subscribe for unit of BNP Paribas Islamic Fund (the « Fund »); nor shall it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever, nor be taken as investment advice. The Fund has been authorised as an undertaking for collective investment in transferable securities (UCITS) in Luxembourg. Its marketing is authorised, at present, in Luxembourg and its units may be offered and sold in all of that country. Steps have been or will be taken to allow the public offering of the units in Bahrain, Kuwait, Qatar, Saudi Arabia, Libyan, Singapore, Malaysia, Switzerland, Netherlands, France, Germany, Cyprus, Turkey, Spain and Portugal. No action has been taken which would permit the public offering of the shares in any other jurisdiction where such action would be required, in particular, in the United States, to US persons and in the United Kingdom. Prior to any subscription in a country in which BNP Paribas Islamic Fund is registered, investors should verify which compartments and which classes of shares are authorised for public sale there, as well as any legal constraints or restrictions there may be in connection with their subscription, purchase, possession or sale of the units of the Fund. Investors considering subscribing for units should read carefully the most recent prospectus. Applications may only be made on the terms and conditions contained in the prospectus. The prospectus is available from BNP PARIBAS, local correspondents if any, or from the entities marketing the Fund. Investors should consult their own legal and tax advisors prior to investing in the Fund. Given the economic and market risks, there can be no assurance that the Fund will achieve its investment objectives. The value of the units may go down as well as up. Performance figures are shown gross of subscription, redemption and conversion fees as well as taxes. Past performance is not a guarantee of future results. For further information or to subscribe, contact an authorised distributor of the Fund. The list of authorised distributors is available from its registered office: BNP Paribas Islamic Fund, rue de Gasperich, 5826 Howald - Hesperange, Luxembourg. Tax: The Fund is not subject to any tax other than an annual registration tax in Luxembourg (0.01% to 0.05% of its average quarterly net assets, depending upon the compartment) and any taxes on income received on investments, which may be withheld by the depositary according to their tax situation in their country of origin. Subscribers must make and submit their own declarations in their country of tax residence. The attention of unitholders fiscally domiciled in France is drawn to their obligation to make a declaration of income in France which, resulting from switching between compartments of the Fund or converting into another class of shares in the same compartment, is subject to French capital gains tax on transferable securities.