Kazkommertsbank Capital Increase

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EBRD will invest up to KZT 3.6 billion (USD 27.5 million equivalent) to maintain its pro-rata voting rights by subscribing new shares in two tranches in the context of capital increases. The proceeds from these capital increases will be used to support asset growth and upgrade of operational structures. The capital increase reinforces the objectives of the original EBRD investment. The proposed investment is the first step towards the implementation of a capital restructuring exercise. EBRD is the only large international investor in KKB, therefore its participation in this capital increase and maintenance of its voting rights shows continued support to the bank’s management and their business plan. Kazkommertsbank (“KKB”), the longest standing EBRD client in Kazakhstan. KKB is the largest bank in Kazakhstan with total assets of USD 5.4 billion and total BIS Tier 1+2 capital of USD 670.7 million (IFRS) at year-end 2004. KKB has long-term ratings of BB- from Standard & Poor’s, Baa2 from Moody’s and BB from Fitch. Acquisition of ordinary voting registered shares for up to KZT 3.6 billion (USD 27.5 million equivalent). KZT 23.8 billion (USD 183.3 million equivalent). KKB is already implementing the Bank’s Environmental Procedures for Local Banks including the Exclusion and Referral List across all its operations. KKB will continue to apply EBRD’s Environmental Procedures for local banks for all of its activities. KKB's clients will be required to comply with, at a minimum, Kazakh environment, health and safety regulations and standards. None. Olzhas Sartayev, Investor Relations Phone: +7 3272 585 111 Fax: +7 3272 585 242 e-mail: Osartayev@kkb.kz www.kkb.kz