PIVDENNYI in Odessa

• Odessa region is one of the most important regions in the country :
  – Odessa region is the largest in Ukraine (5.5% of the territory) – 33.31 thousand km2
  – Odessa region contributes to 5.0% of the Ukrainian GDP and 5.1% of the total population (over 2.39 mn residents) and has the lowest level of unemployment in Ukraine
  – Odessa is one of the largest sea ports on Black Sea and the largest in Ukraine

• Services sector, mainly represented by SMEs, is the main factor of growth (30.0% increase in 2005 and 2006)
• Odessa region is Pivdennyi Bank's "home market"
• The Bank's market share in the region is 30.0%, up from 12.0%, five years ago
• The Bank has a very loyal customer base comprised mainly of SMEs and large corporates many of which being with the Bank since its creation

Current Network:

• 17 branches
• 97 outlets
• 200 currency exchange offices
• 141 ATMs, 906 point-of-sale ("POS") terminals.

Business Overview

• As of 30.09.2007, the Bank was the 19th largest bank of Ukraine in terms of total assets as per NBU classification
• Pivdennyi Bank offers a range of banking services to corporate (Large Corporate & SME) and retail customers
• Corporate banking has traditionally been the main orientation
• Acquired the Regional Investment Bank ("RIB") in Latvia in 2007
• Experienced and stable management team
• Strong market position in the Southern Ukraine
• Large regional distribution network with growing presence outside of Odessa region

Ukrainian Banking Sector

• Sector growth has outpaced GDP growth, but penetration is still below other European emerging markets, indicating significant opportunities for business growth
• Future underpinned by economic growth, consumer demand and increasing confidence in the sector
• Increase in the demand for money, which resulted in money supply and loan growth due to gradual improvement of macroeconomic situation
• Shareholders' capital of Ukrainian banks increased in January-May 2007 by 15.0% and reached USD 9.7bn as of 01.06.2007
• 155 active banks in Ukraine – equity and asset concentrations remain high
• Since 3Q05, there have been a number of acquisitions in the banking sector – three of the top five local banks have been acquired (US$2.6bn) by European banks, targeting the retail and SME space
• Total banking assets grew by 19.4% in January-May 2007 and reached USD 80.5bn as of 01.06.2007