« Coming together is a beginning; Keeping together is progress; Working together is success! »

JSCB «Izhcombank» (JSC) was established on October 30, 1990 on the base of Udmurt Republic Zhilsocbank authority of USSR.  In the head of the bank is a team of professional managers some of them have got education in finance at Securities Institute (London, UK), University of Brighton (Brighton, UK) and Securities Institute (New-York, USA) and are experienced in financial market from 1994. The major number of staff is more than 5 years experienced in bank sphere. Staff average age is 37,5. Accurate and competent management ensures working concurrence at all levels of bank service. It builds up a reputation of leading credit institution in Udmurt Republic.

«Coming together is a beginning; Keeping together is progress; Working together is success!»

Henry Ford

BANK MISSION

To provide full complex of high quality service for customers with any form of ownership and field of action. To remain the leading credit institution in Udmurt Republic and to enter the Russia wide bank market.

Our bank has got the modern technologies which allow our customers use Bank as high precision financial instrument efficiently and with maximum profit.

NET WORK OF BRANCH BANKS AND OUTLETS

There are 1 main office and 5 outlets in various districts of Izhevsk, Udmurt Republic

6 outlets in towns of Udmurt Republic

1 outlet in Perm region 1 branch bank in Moscow

Outlet «Glazovskoye» Glazov, Udmurt Republic

DYNAMICS OF ACTIVE GROWTH

The Bank constantly increases owner capital and aspires to get maximum profit.

02/1

6/19

10

07/1

4/19

07

03/1

3/19

40

11/1

8/19

60

04/0

9/20

65

10/2

5/21

74

08/09/1990

11/07/2028

10/04/2063

12/20/2208

06/24/2559

07/17/2764

0

50000

100000

150000

200000

250000

300000

350000

2002 2003 2004 2005 2006 01.10.20072002 2003 2004 2005 2006 01.10.2007

thou

sand

rubl

es

The Bank holds conservative policy of management. The revenue structure for the 9 months distributes as follows:

*

2%

55%

3%

16%

23%

Monetary transactionsCreditsSecurities tradingSettlement and cash servicesOther incomes *

* others (restitution of funds from reserve account, commission, received under issued guarantee, factoring transaction incomes, trust management incomes).

In 2003 the owner and managing team of the Bank was changed as the result bank activities grew, capitalization and total balance increased:

Systematic routing complex checks by Central Bank of Russian Federation shows that Federal law No.115- ФЗ «About combating money laundering and financing of terrorism» is fulfilled without any claims.

TOTAL BALANCE

Строка 10

500000

1000000

1500000

2000000

2500000

3000000

thou

sand

rubl

es.

Constant growth of credit portfolio and wide range of loan products show banks activity and its dynamic development.

The main source of loan funds is household deposits. 11

/14/

2068

08/2

3/23

54

01/0

3/27

10

04/1

3/33

52

05/2

5/45

34

09/2

4/54

65

12/29/2182

12/05/2508

10/22/3073

06/02/3924

05/20/6571

02/22/8491

0

500000

1000000

1500000

2000000

2500000

3000000

2002 2003 2004 2005 2006 01.10.20072002 2003 2004 2005 2006 01.10.2007

thou

sand

rubl

es

In 2004 the first among banks of Udmurt Republic the Bank was included in register obligatory insurance scheme of deposits. Positive growth of natural person’s deposits reflects the level of peoples trust.

BANK SERVICES

Bank is a universal credit institute; it provides wide range of services both to natural and legal persons:

Settlement and cash service both in rubles and foreign currency; Full complex of credit activities both for natural and legal persons; Work with letters of credit; Factoring transactions; Issuing of proper region (Izhcard) and international credit cards (Master Card); Operations on securities market; Trust managing of monetary funds; Cash remittance via Western Union and Unistrim systems; Household deposits; Internet – Banking; Bank guarantees providing;

RATES

35 position among the biggest banks of Russia in the volume of outstanding credits for small and medium business in the 1st half of 2007 year.

196 position in the TOP 500 of profitable banks (Russia) in the 1st half of 2007 year.

64 position among the banks of Russia in the volume of credit cards in circulation and 51st position in the volume of issued cards in the 1st half of 2007 year.

33 position in the list of «The most Mortgage banks of Russia in 2006» with the number of given credits 1 530 in 2006 and percentage changing 514,92 %. in comparison with 2005.

3 position in the competition «The best Mortgage program 2006» («Informipoteka» Agency, December 2006).

Rating agency AK&M conferred JSC «Izhcombank»   the credit rate according to the national scale: «В++» with the stable outlook. (May 2007)

According to the date of information portal «RBK Raiting»

REWARDS Annual bonuses «Banking Industry» in the sphere of banking business in the «Best Regional Bank» category: according to the results of 2004 – diploma according to the results of 2005 – silver award according to the results of 2006 – golden award II position in the VI Interbank banking legislation Internet – Championship (2006) Winning of the competition of salary project (the transference process of out- of- pocket cost for salary and bonuses (and others social payments and pension benefits) by credit cards) on the involving of credit organizations for making the operations with the Izhevsk city budgeting funds. (The competition was organized by Financial Management of Izhevsk city organization in 2006).

MEMBERSHIP Non-profit organization «Region Banks of Russia Association (Association «Russia») Non-profit organization «Socioeconomic Association «Business Udmurtia» (Association «Business Udmurtia») CJSC «St. Petersburg Currency Bourse» (CJSC SPCB) Regional payment system «Izhcard» Regional payment system «Citycard»

International payment system «MasterCard International»

Partnership OJSC «Mortgage housing lending Agentcy» OJSC «ATTA Mortgage» Kit-Finance Investment Bank (OJSC) Managing company «Region-Development»

Bank is the only credit organization on the territory of Udmurt Republic, which has got the status of service agent of the Mortgage lending federal program.

Using the wide-spread outlet net, Izhcombank accepts the payments by credit liabilities in favour of correspondent banks. CJSC «Bank Russkiy Standart» Limited liability company «HKF Bank» Limited liability company «Rusfinans-Bank»

PLANS AND OUTLOOKSThe most important Bank’s goals are:Bank’s owner capital increasing at least up to 450 000 000 rublesGetting the profit in 2008 more then 100 000 000 rublesSystematic risk managementCorporate management perfection

Plans for the 2008 year

Selling System Development and Perfection One of the Bank’s priorities is the development andperfection of the selling system, which includes

functiondepartments organization, consultant institute

introduction,points of sale expansion.

Bank department opening in the 10 mostly important

administrative centers of Udmurt Republic. This new departments will be responsible for pension

andsocial relief payments, effective of payment, creditactivities.

PLANS AND OUTLOOKS

Entry in «VISA» JSCB «Izhcombank» (OJSC) is going to enter the International Payment System VISA.

Thisfact will open new facilities to our clients - physical persons, production units and

tradeorganizations. And the Bank itself will have the opportunity to develop multisystemacquiring of the international cards as the individual project.

Investment Direction of the Bank Activity Asset Management, brokerage services, corporate finance

Bank’s Asset Securitization The Bank is considering the possibility of business refinancing by the placement ofsecured debentures

Effective Cooperation with the Consumer Effective cooperation with the customer is one of the key factors of the Bank

activitysuccess. That is why we are paying a lot of attention to the staff training, clientsubdivisions and sales subdivisions development.

AUDITOR‘S CONCLUSION

Audit Company CJSC «Ekaterinbyrgskiy Audit – Centr» has been performing the audit of Izhcombank since 2003 year.

This Audit Company has been one of the 10th first - rate companies in Russia for the last 5 years (According to the magazine «Expert» data).

CJSC «Ekaterinbyrgskiy Audit – Centr» specialists have completed the training courses in the international training centers of the following companies: Price Waterhouse Coopers Deloitte & Touche   Ernst & Young

Several specialists have the international diplomas of ACCA (The Association of Chartered Certified Accountants) and IFRS (International Financial Reporting Standards).  According to the audit company the Bank’s finance accounting is reliable represents, in all aspects, the financial position and the results of financial and economic activity in compliance with the Russia statutory requirement in the sphere of making the finance accounting.

BANK’S VISITING CARD

Firm-name:JOINT STOCK BANK «IZHCOMBANK»  (open joint stock company)                           

Abbreviation: JSCB_«IZHCOMBANK» (OJSC)                                                                                                                                                              

Essential Elements:cor. account 30101810900000000871 in State Financial Settlements Center of Udmurt Republic National BankTIN 1835047032, KPP 183501001BRBIC 049401871RNNBO 09269011, SIC 96120PSRN 1021800000090 31.07.2002

Headquarters address (correspondence address):Lenina str. 30, Udmurt Republic, 426076, Russia

Tel: (3412) 919-100Fax: (3412) 51-09-66Telex: 612923 - IJKOM.RU

Central Bank of Russia License N 646 dd 05.10.2005 Website: www.izhcombank.ru