Vozrozhdenie Bank’s public issue of 2 million shares completed

Press-release August 1, 2006

Vozrozhdenie Bank announced that the bank’s public issue of 2,000,000 common shares at a price of 729 rubles ($27.00) has been completed. Purchase orders for the total volume of shares have been accepted and paid.

This issue represents a 10% increase in the number of shares of Vozrozhdenie Bank.

At the moment of issue market capitalization of Vozrozhdenie Bank calculated on the basis of the subscription price is four times higher than  the bank’s book value.

1.46 billion rubles ($54 million) of the new capital will allow the bank to continue to grow its business and expand services to its customers. Both international and domestic investors took part in the subscription. A small number of shares were purchased by existing shareholders who exercised their pre-emptive rights to buy at the same price.

“This amount of new capital will support our organic growth, — Dmitry Orlov, Chairman of Vozrozhdenie Bank, commented the purpose of the issue — Assistance to the development of SME segment are our first priority at the moment as well as extension of consumer lending, credit cards operations and especially mortgages”.

This was the first time a Russian bank has raised new equity by a public issue of shares listed on Russian exchanges with the help of an investment dealer. Investment company Troika Dialog was issue advisor to the bank.

“We are pleased with the results of the first in the history of banking sector public issue of shares by one of the leading commercial Russian banks. Despite of complex market conditions share issue was successfully completed, — Dmitry Kushaev, Managing director of Troika Dialog, notes, — In conditions of consumer lending rapid growth a question of additional banking capital fast attraction becomes more and more actual. I suppose, that following Vozrozhdenie Bank many Russian banks will consider a possibility of new capital attraction by public issue of shares”.

The new shares are expected to be registered in a period of time determined by the law and will be added to the existing shares of the bank traded on the MICEX and RTS. The bank’s shares also trade as ADRs on German exchanges.

Vozrozhdenie Bank was founded in 1991. The bank is widely owned, with approximately 8,000 shareholders, both companies and individuals.

Vozrozhdenie Bank provides personal banking and business services to clients throughout the Russian Federation. Its nationwide network includes over 140 branches and over 400 ATMs in 19 regions of Russia, providing about 1,000,000 corporate and retail clients with a range of services, from savings accounts, payment handling, payroll management, to mortgages, bank cards and business and consumer loans.

For more information see: www.vbank.ru