New Debt and Equity Issues

26 February 2007

Bank Vozrozhdenie is working on two new issues of securities.

First, bank is presently in the process of issuing its first long term tradable debt instrument; a 3 billion ruble, 3 year, fixed rate domestic bond.

This is being arranged by Gazprombank and will be listed and traded on MICEX. The offering will be priced in early March. Details of the issue are included in our Statement of Material Facts in the Investor relations section of our web-site.

With the successful increase in our mortgage business we feel that it is appropriate to raise some longer term fixed funds to continue to ensure a good matching of asset and liability maturities. Ensuring a stable and diversified base of funds for the bank’s growing business is a primary concern of our treasury management.

Second, the Board of Directors of the bank approved a new issue of 3 million ordinary shares and the information was submitted to the Central Bank of Russia for their permission to register the issue. The usual process of approval takes about one month. Existing shareholders will have preemptive right to participate in proportion to their existing shareholding as at the date of the decision, February 20.

The increase in the capital will allow the bank to continue to expand its business. While mortgages and consumer loans are expanding rapidly, commercial loans to support the expansion of our commercial clients businesses are equally important. With this increase in capital we can continue to meet all appropriate borrowing needs of both individual and business customers.

More formal information is included in the Investor relations section of our web-site in the Statements of Material Facts. We will continue to post all available information about these securities issues on our website.

Bank Vozrozhdenie has mandated UniCredit Group and Landesbank Berlin AG as Mandated Lead Arrangers of syndicated term loan facility
Bank Vozrozhdenie successfully placed its debut bond issue of RUB 3 billion