IS INVESTMENT 2007 QI Results & Performance. 2 Is Investment is the investment arm of Is Bank and the leading investment banking institution in Turkey.

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IS INVESTMENT 2007 QI Results & Performance

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Is Investment is the investment arm of Is Bank and the leading investment banking institution

in Turkey. The company covers a wide range of services including, brokerage and investment

advisory, asset management, corporate finance, private equity and research

IS Investment is the outright leader in Turkish capital markets with 6.4% share in equities,

25% in derivatives, 13% the bond and bills, 21% in portfolio management

Market Share Market Share (Ranking) (Ranking) in Turkish Capital Marketin Turkish Capital Marketss % % ((**))

* Source: ISE, Derivatives Market, Rank of Is Investment among brokerage firms in terms of volume

YearYear EquityEquity Bonds & BillsBonds & Bills Derivatives Derivatives Mutual FundsMutual Funds

2006 6.4 (1) 13.1 (2) 25.3 (1) 21 (1)

2005 6.3 (1) 15.5 (1) 25.1 (1) 20 (1)

2004 6.4 (1) 11.1 (2) - 21 (1)

2003 5.2 (1) 12.3 (2) - 20 (1)

2002 4.9 (2) 9.4 (3) - -

2007 QI Results and Performance

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Equity Market

Solidify our leadership position in the ISE Equity Market We cemented our leadership position in the equity market by increasing our market share from 6.3% to 6.4%

However, our trading volume declined to TRY 10,7 bn, down from TRY 11 bn due to contraction in the overall

market

Recall that, 2006/QI was one of the strongest quarter in the ISE history in terms of trading volume

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Bills & Bonds Market

Is Investment recaptured leadership in the ISE bills &bonds market, and increased its market share to 14.8% from

13.1% a year ago (among the brokerage houses)

However, our trading volume declined to TRY 4.8 billion, down from TRY 7.5 billion due to contraction in the

overall market volume

Recaptured leadership in the ISE Bills & Bonds Market

Bills&bonds trading volume and market share (Is Investment)

7,5

4,8

0 1 2 3 4 5 6 7 8

2006/QI

2007/QI

Market Share : 13.1%

Market Share : 14.8%

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Our daily trading volume quadrupled to TRY 40 mn in the derivative market, although our market share declined

to 17%

Upbeat momentum in the derivative market is expected to continue in the coming quarters

Our daily trading volume in the Derivatives Market more than quadrupled on YoY basis

Derivatives

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Parallel to the sector, we have experienced major redemptions from our mutual fund

business

Our revenue from portfolio management declined in Q1 due to a

contraction in assets under management parallel to the sector

We expect sharp recovery in portfolio management revenues starting

from the second quarter

(i) Assets under management recovered to $105 million, up from

$83 million in the first quarter

(ii) Is Portfolio Management will be consolidated to Is Investment’s

results starting from QII/2007

Mutual funds

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A major upswing in corporate finance income

Corporate Finance

Corporate finance revenues recorded 103%

YoY growth in QI/07.

Retainer and success fees from increasing

number of M&A deals boosted the fees on

corporate finance operations

QI corporate finance revenues do not include

revenues from Halkbank and Is Investment

IPOs

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Breakdown of Revenues

Is Investment 2006/QI 2007/QI YoY ▲ %TRY 000

Operating Income: Interest and trading income 17.691 20.369 15,1% Commission Reveneus 9.960 8.333 -16,3% Income from corporate finance 316 640 102,5% Other income 3.948 1.439 -63,6%

Total Operating Revenues 31.916 30.782 -3,6%

Operating Expense 8.978 10.982 22,3%

Net Operating Profit 22.937 19.799 -13,7%

Other Expenses 1.997 1.362 -31,8%

Financial Expenses 2.179 2.863 31,4%

Minority Expense 6.962 9.917 42,4%

EBT 11.799 5.657 -52,1%

Tax 1.174 511 -56,5%

Net Profit 10.626 5.146 -51,6%

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Is Investment’s total revenues amounted to TRY 30.7 mn in QI/2007, down by 3.6% on YoY basis

Commission revenues remained below the target due to dismal fund commissions

Interest and trading revenues grew sharply from TRY 7.5 mn to TRY 10.8 mn due to rise in margin

accounts

Other revenues contracted from TRY 17.7 mn in QI/06 to TRY 16.5 mn due to decline in arbitrage

revenues

QII sets to be a much better period in terms of operating revenues

Breakdown of Revenues

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Equity trading commissions displayed a weak performance on annual basis as 2006 Q1 was a very strong

quarter. Growth performance will improve in the forthcoming quarters as we move from high base period to

low base period.

Commissions on derivatives skyrocketed in 2007, reaching TRY 1.2 mn vs TRY 170K in QI/06

Mutual funds and other commission revenues have been the laggards. Mutual fund commissions were lower

compared to last year, due to strong redemptions experienced in the second half of 2006.

Commissions on corporate finance has been quite strong in Q1. In our view, this is only the tip of the iceberg

as Halkbank IPO, the largest privatization offering in Turkish capital market, is finalised in the second

quarter.

Breakdown of Commissions

Commission Revenue Breakdown TRY 000 2006/QI 2007/QI YoY ? %Borkerage Commissions (securities, net) 7.420 7.505 1,1%Corporate Finance 316 640 102,5%Asset Management 1.319 570 -56,8%Other Commissions 1.221 258 -78,9%Total 10.276 8.974 -12,7%

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Breakdown of Commissions

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Loans to clients almost tripled in a year period and reached TRY 57 mn as of the end of QI/07

Interest income on margin accounts recorded TRY 129% YoY growth, reaching TRY 2.9 mn in the first quarter of

the year.

Outstanding Loans (TRY Million)

Loans to Clients

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Securities borrowing and other costs declined

substantially on YoY basis

Other expenses

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Operating costs recorded 22% rise on YoY basis

The first quarter cost structure includes several one-off expenses like communication

and membership costs

Pre-paid one-off expenses, such as IPO costs, also elevated the operating costs in

QI/07

We will see a pick up in employee expenses in QII due to salary rises, yet it will be

more than offset by the savings on other fronts.

Operating Expenses

TRY (000) 2006/QI 2007/QI YoY ▲ %Employee Costs 5.136 5.552 8,1%Severance 38 68 76,8%Depreciation 315 251 -20,4%Goodwill -80 -89 10,9%Consultancy 222 470 111,8%Operating Costs 1.745 2.302 31,9%Sundry taxes 1.171 1.361 16,2%Advertisement 197 94 -52,6%

Marketing and distr. Exp. 234 974 316,9%Total 8.978 10.982 22,3%

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Short term interest expense was recorded TRY 2.86 mn in QI/07 vs. TRY 2.179 mn in QI/06

We have excluded the ISE money market expense and FC losses from the short term interest expenses.

Interest Expense

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IS INVESTMENT SECURITIESIS INVESTMENT SECURITIES

www.isyatirim.com.trwww.isinvestment.com

HEAD OFFICE

Is Kuleleri Kule-2 Kat 12

4. Levent 34330 Istanbul

Ph: (0212) 350 20 00

Fax: (0212) 325 12 26 – 325 12 48

IZMIR BRANCH

Talatpasa Bulvari No:27

Alsancak 35220 Izmir

Ph: (0232) 488 90 00

Fax: (0232) 464 69 43 – 464 68 98

KALAMIS

BRANCH

Fenerbahce, Fener Kalamis Cad.

Tibas-Belvu Sitesi A2 Blok Daire 3

Kadikoy 81030 Istanbul

Ph: (0216) 542 72 00

Fax: (0216) 542 72 01

ALMA ATA

LIAISON OFFICE

181 Zheltoksan St. The Regent Almaty

Oda 108 Almaata 480013 Kazakhstan

Ph: (+73272) 505000

Fax: (+73272) 582805

ANKARA

BRANCH

Tahran Cad. No:3/8

06700 Kavaklidere - Ankara

Ph: (0312) 455 26 50

Fax: (0312) 466 26 62

YENIKOY

BRANCH

Koybasi Caddesi Iskele Cikmazi No 277

34464 Yenikoy ISTANBUL

Ph: (0212) 363 01 00

Fax: (0212) 363 01 01

LEVENT

LIAISON OFFICE

Yapi Kredi Plaza C Blok Kat 9 Bolum

25/B 34330 Besiktas, Istanbul

Ph: (0212) 282 00 18

Fax: (0212) 282 00 19

SUBSIDIARY MAXIS SECURITIES LTD

8 Princes Street

London EC2R 8HL UK

Ph: (+44207) 397 1431

Fax: (+44207) 726 2566

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The information in this report is prepared by “IS YATIRIM MENKUL DEGERLER A.S.” (İş Investment) and it is not to be construed as an offer or solicitation for the purchase or sale of any financial instrument or the provision of an offer to provide investment services. Information, opinions and comments contained in this material are not under the scope of investment advisory services. Investment advisory services are given according to the investment advisory contract, signed between the intermediary institutions, portfolio management companies, investment banks and the clients. Opinions and comments contained in this report reflect the personal views of the analysts who supplied them. The investments discussed or recommended in this report may involve significant risk, may be illiquid and may not be suitable for all investors. Therefore, making decisions with respect to the information in this report cause inappropriate results.

All prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this report is strictly prohibited. The information presented in this report has been obtained from sources believed to be reliable. Is Investment cannot be held responsible for any errors or omissions or for results obtained from the use of such information.

Abbreviations and formulas used in the report: CB: Central Bank; MCap = Market Capitalization; P/E: Price/Earnings Ratio = Price/Earnings per share; P/BV: Price / Book Value = Price/Shareholders’ Equity per share