Bank Vozrozhdenie Annual General Shareholders’ Meeting

29 June 2007

The Annual General Shareholders’ Meeting (AGM) held today reviewed the results of 2006 activities and the strategic directions for the current year. The financial results of Bank Vozrozhdenie were described as positive and the meeting approved the annual statement and annual financial accounts, including the account of profit and losses of the Bank and the distribution of profits.

Management of Bank Vozrozhdenie has a clear view concerning the development strategy, which is to grow the business efficiently and organically in high-potential areas. “Our positive business results demonstrate the effectiveness of the strategy”, said Dmitry Orlov, Chairman of the Management Board. “In 2006 Bank Vozrozhdenie grew faster than Russian banking sector as whole”.

In particular, the loan portfolio increased by 70% and reached 52.4 billion rubles and retail deposits grew by 52% to 37.8 billion rubles. Net profit increased by 47% to 801 billion rubles according to International Financial Accounting Standards.

In future Bank Vozrozhdenie will focus its attention on business development in main client segments, improving sales technology and developing new products for clients’ needs. All this is to provide a higher quality of personal service, giving customers an effective way to solve financial problems at all stages of their life and business activity.

Yury Marinichev, Chairman of the Board of Directors of Bank Vozrozhdenie, emphasized the high level of professionalism by the Bank’s management and particularly the improvement of capitalization by attracting new equity through a share issue. During 2006, the market capitalization of Bank Vozrozhdenie increased by nearly 2,7 times and reached 33.3 billion rubles, excluding the effect of the 3 million share issue recently completed in 2007. “Shareholders of the Bank can be satisfied with business results which were reflected the doubling of the stock price”, said Mr. Marinichev. “Results of the latest issue in May 2007 confirm the effectiveness of the business model developed by the Bank”. Every shareholder can appreciate the growth in value of shares they own".

The AGM approved amendments to the Articles of Association and internal documents regulating activity of the governing bodies of the Bank. Most of the amendments were proposed in order to bring the provisions in line with those of the Russian Federal Law on Joint Stock Companies. These particularly clarify the competence of the governing bodies of the Bank, the procedures for convening the Annual General Meeting of shareholders and for altering the Articles of Association. Amendments to provisions regulating share repurchases were also approved by the AGM.

The Annual General Shareholders’ Meeting approved the payment of dividends for ordinary shares at a rate of 5%, and preferred shares at 20%, of their face value. The total sum of dividends declared was 12.96 million rubles.

The Annual General Shareholders’ Meeting elected 12 members of the Board of Directors, namely Yury M. Marinichev, Chairman of the Moscow Regional Union of the Consumers Cooperation; Dmitry L. Orlov, Chairman of the Bank‘s Management Board; Lyudmila A. Goncharova, Deputy Chairman of the Bank‘s Management Board; Aleksandr V. Dolgopolov, Deputy Chairman of the Bank‘s Management Board; Nikolai Y. Demin, General Director of AVK Exima, NPJSC; Alexander N. Zhizhaev, General Director of GUP MO Mostransauto; Valery P. Zhigulich, General Director of S.A. Zverev Krasnogorsky Zavod, JSC; Nikolai S. Zatsepin, CEO of Mozhaisk Wholesale and Retail Trade Company, NPJSC; Valentina V. Kabanova; Otar L. Margania, Senior Vice-President of Vneshtorgbank, OJSC; Nikita S. Mikhalkov, General manager of TRITE Studio, LLC; and Rustem M. Usmanov, General Director of Almazyuvelirexport, state owned foreign trade company.

The AGM elected members of the Audit Commission, increased the number of unissued authorized ordinary shares to 8 million and granted authorization for related-party transactions between the Bank and interested persons which may be executed on standard terms until the next AGM.

The Annual General Shareholders’ Meeting reappointed PricewaterhouseCoopers as Auditor of Bank Vozrozhdenie for the next year.

Formal Minutes of AGM will be placed on the web-site of the Bank shortly.

Vozrozhdenie Bank, a community bank for companies and individuals, was founded in 1991. (General License from the Central Bank of the Russian Federation # 1439, March 24, 2003.) Among the Top 30 Russian Banks in the Central Banks rating, its network includes 158 branches in 19 regions of Russia. The Bank provides more than 1,000,000 individual and 45,000 corporate clients with a range of services, from savings accounts, payment handling, payroll management, to mortgages, bank cards and business and consumer loans. According to “Expert” magazine, in 2006, the Bank ranked 6th in terms of both the number of mortgages granted and in payment card business. According to Moody’s Interfax the Bank ranked 23rd in terms of net assets. Bank Vozrozhdenie was recognized as the most transparent bank for shareholders in Russia by Standard&Poor’s in 2006.

Annual general shareholders meeting
Bank Vozrozhdenie assets increased by 13.7% during the Q2, 2007