The Board of Directors of Bank Vozrozhdenie held its regular meeting

21 November 2008

The Board of Directors of Bank Vozrozhdenie held its regular meeting in the form of joint presence.

The day before, on November 20, 2008, the Audit and the HR & Compensation Committees held their meetings, where the issues which had been planned for discussions by the Board of Directors were preliminarily reviewed.

At the meeting the Board of Directors reviewed the Bank’s 9M 2008 IFRS results. The Board highlighted the growth of the Bank’s key performance indicators in comparison to the same period of the last year.

The Board of Directors discussed a number of issues concerning banking risk management. The Board approved the Audit Committee recommendations concerning the banking risk management strategy and carried out the assessment of the Bank’s risk management procedures effectiveness. The Board of Directors recognized the Bank’s risk management system as adequate to the existing risks. Given to the growing number of banking transactions and widening of the bank products and services range, the Management Board was recommended to pay special attention to the Bank’s risk management system improvement.

The Board of Directors analyzed the implementation of the earlier approved schedule of Bank’s corporate governance improvement. According to the plan the Board of Directors developed and approved a number of internal regulations including the Code of Corporate Ethics. The Audit and the HR & Compensation Committees developed recommendations on certain issues of Corporate Governance. The results of the Bank corporate governance improvement plan implementation were recognized as satisfactory.

The Board of Directors discussed the results of the Bank reviews held by the Central Bank during the third quarter after preliminary analysis made by the Audit Committee. During its reviews the Central Bank did not reveal any material violations.

The Board of Directors reviewed the Q3 2008 report on compliance with the rules of internal control and with internal control programs to combat legalization (laundering) of criminally obtained revenues and terrorist financing and recognized the Bank’s efforts on compliance with the internal control rules as satisfactory.

As the Bank is a professional member of the securities market it should organize the internal control over its operations compliance with the requirements the current legislation. Therefore the Board of Directors reviewed the Q3 2008 Report of the Controller over Bank Vozrozhdenie activity at the securities market and recognized the Controller’s work in the third quarter 2008 as satisfactory. The Board authorized him to hold some official reviews of the certain areas of the Bank’s operations in the forth quarter 2008.

The Board of Directors approved the schedule of reviews to be held by the Internal Control and Audit Service in the internal divisions and branches of Bank Vozrozhdenie in 2009.

The Board of Directors also reviewed other issues within its competence and in accordance with the earlier approved schedule of its work.

Bank Vozrozhdenie 9M08 net profit under RAS reached RUB 2.7 bln
Vozrozhdenie Bank 9M 2008 IFRS Profit of 2,525 million rubles, more than double 2007