Delta Leasing II

completed

ZAO DeltaLeasing (DeltaLeasing or the company), previously known as Delta Lease - Far East, is a leasing company based in Vladivostok with offices in Yuzhno-Sakhalinsk (Sakhalin Island), Khabarovsk, and Novosibirsk (Novosibirsk office serves as a hub-office for Siberia region with smaller regional offices opened in Omsk, Tomsk, Krasnoyarsk, Irkutsk, and Barnaul). The company has been in operation since 2000 and is entirely owned by the U.S. Russia Investment Fund (TUSRIF).DeltaLeasing primarily provides financial leases to its clients with a specific focus on servicing the needs of Small and Medium size Enterprises (“SMEs”). As of September 30, 2005, DeltaLeasing had total assets of USD26.2 million.This proposed project of an aggregate amount of up to $16 million consists of a 5-year senior A loan of up to $6 million and a 3-year syndicated B loan of up to $10 million. Both loans may have an option of Ruble-linked feature. The purpose of this project is to provide long term funding to DeltaLeasing to enable the company to meet the strong demand for longer term leasing products in the SME sector of the Russian Far East and Siberia regions.