1. Listing in London November 2005

2. 2 Agenda wThe London markets and Russia wWhy consider accessing the international capital markets? wWhy London’s Main Market? –Range of markets –Flexible regulation –Access to capital –Access to liquidity wAIM – the benefits of accessing the world’s most successful growth companies market wCase studies wQuestions?

3. November 20053 Source: London Stock Exchange – September 2005 London Stock Exchange - key statistics Admitted companies (inc AIM) 2,494 domestic companies 519 international companies 1,311 AIM Market capitalisation UK listed: US$3,020bn International listed: US$3,786bn AIM: US$88bn Equity turnover (Jan-Dec 2004) Main Market: US$4,447bn domestic US$4,614bn international GDRs: US$109bn AIM: US$34.8bn

4. November 20054 Companies on the London Stock Exchange: Russian focus  18 Companies traded on the LSE Main Market  In 2004, the total trade volume in Russian DR’s was over US$63.96bn  Privatisation expertise in London  Balanced approach to corporate governance  Gateway to European consumers and investors Source: London Stock Exchange trade statistics

5. November 20055 Source: London Stock Exchange trade statistics AO TATNEFT GAZPROM LUKOIL OMZ EFES Breweries International SISTEMA PYATEROCHKAEVRAZ Group NOVATEK Companies listed in London, Main Market Companies traded in London, Main Market AO MOSENERGO ROSTELEKOM SIBNEFT MOBILE TELESYSTEMS OJSC MMC NORILSK NICKEL SURGUTNEFTEGAZ WIMM BILL DANN FOODS UNIFIED ENERGY SYSTEMS OF RUSSIA YUKOS

6. November 20056 Companies on AIM with CIS focus -22 companies Source: London Stock Exchange trade statistics ARICOM ORIEL RESOURCES AVOCET MINING PALLADEX CARDINAL RESOURCES PETER HAMBRO CELTIC RESOURCES RAMBLER MEDIA EUREKA MINING RAVEN RUSSIA FRONTIER MINING REGAL PETROLEUM HAMBLEDON MINING SIBIR ENERGY HIGHLAND GOLD TRANS SIBERIAN KRYSO RESOURCES UKRPRODUCT NELSON RESOURCES URALS ENERGY OXUS GOLD VICTORIA OIL

7. November 20057 Case Study: London – a leader in international trading Source: London Stock Exchange trade statistics The Exchange’s member firms traded around US$64bn of Russian securities in 2004, representing around 59% of the total trading volume on the IOB for 2004.

8. November 20058 Company growth Growth Independent Market Expertise Recommendations on how to maximise the value of joining a London market The LSE supports customers in maximising shareholder value through supporting capital raising and generating liquidity whilst maximising opportunities from their increased profile Capital Raising it efficiently & effectively when required Profile Maximising marketing/PR opportunities Liquidity Increasing and maintaining liquidity

9. November 20059 CAPITAL: Case study - Main Market GDRs Core business activities Sistema is the largest private sector consumer services company in Russia and the CIS, with over 35 million customers. Founded in 1993, the company reported revenues of US$ 4.1 billion for the first nine months of 2004 and total assets of US$ 7.7 billion. Transaction Synopsis Date of Admission : 14 February 2005 Market: Main Market Transaction: Placing Money raised: $1.56 billion Turnover (first 11 days): $2.54 billion FTSE Classification: Diversified Industrials “London is a major capital markets center and the choice of the London Stock Exchange reflects our desire to attract a broad institutional shareholder base, as well our strategic partnerships with leading global companies based in Europe”. Vladimir Evtushenkov, President of Sistema Sistema is the largest Russian IPO ever and the biggest international IPO on the London Stock Exchange since Orange in 2001. Sistema

10. November 200510 LIQUIDITY: Case study – Main Market ADR’s Lukoil OAO Transaction Synopsis Date of Admission : 7 August 2002 Market: Main Market Transaction: Placing Market Capitalisation: US$34 billion FTSE Classification: Oil integrated “We listed ADR’s on the London Stock Exchange in August 2002 and are delighted with the recent ADR listing and the volume of trading.” Mr Alekperov, President The increased level of information transparency and corporate governance has fuelled the liquidity of Lukoil securities. Lukoil DR’s are one of the most liquid securities on the London’s IOB.

11. November 200511 PROFILE: Case study – Main Market ADR’s Transaction Synopsis Date of Admission : 30 September 2003 Market: Main Market FTSE Sector: Engineering - General OMZ “The listing of our DRs on the Official List of the UK Listing Authority is a significant step in our efforts to increase the transparency of our company for our investors, customers, employees and partners.” Kakha Bendookidze, Chief Executive Officer Core business activities OMZ (Uralmash - Izhora Group) is one of the largest Russian heavy industry enterprises. The Company has manufacturing and engineering operations in Russia and the Czech Republic and representative offices in India and China.

12. November 200512 London attracts companies raising capital London dominated the European IPO market in the year 2004 with 79% of all IPOs Source: London Stock Exchange trade statistics and individual exchange websites

13. November 200513 London Stock Exchange: the choice for international companies London Stock Exchange - 423 new companies joined in 2004, 293 of which were IPOs, 49 of which were international NYSE – 131 IPOs in 2004, 11 companies of which were international Nasdaq – 166 IPOs in 2004, 18 of which were international Source: London Stock Exchange and individual exchange websites

14. November 200514 London Stock Exchange – 16 Intl Companies on the MM in 2005 Source: London Stock Exchange - 2005 Company Name Country of OriginAdmission Date Money Raised US$m FRUTAROM INDUSTRIESIsrael08/02/200555 KUMHO TIRE CO INCSouth Korea16/02/2005367 SISTEMA JSFCRussia14/02/20051,560 UTI BANKIndia22/03/2005240 NEWS CORPUSA18/04/20050 SREI INFRASTRUCTURE FINANCEIndia21/04/200534 PYATEROCHKA HLDG N.V.Netherlands11/05/2005562 AGCERT INTERNATIONALEire08/06/2005109 EVRAZ GROUP SALuxembourg08/06/2005417 PARTYGAMINGGibraltar30/06/20051,632 BANCO SANTANDER CENTRAL HISPANOSpain01/07/20050 OAO NOVATEKRussia27/07/2005966 888.comGibraltar04/10/2005270 BANKMUSCATOman05/10/2005163 INVESTCOMUAE11/10/05700 KHAZAKHMYSKazakhstan12/10/051,124

15. November 200515 London has the widest choice of proven markets globally A choice of globally respected markets supported by a wide range of institutional & retail investors Main Market Supports the capital raising activities of more established companies seeking further growth. 1,702 issuers Supports the capital raising activities of earlier stage companies in their initial growth period. 1,311 issuers No other Exchange globally can offer the same choice of markets with the same breadth and depth of investors Source: London Stock Exchange – September 2005

16. November 200516 Key differences between our markets  Pre-vetting of admission documents by the UKLA  Compliance required with the rules of the UKLA  Normally a three-year trading record required  Minimum of 25% shares in public hands  Prior shareholders approval for certain transactions  Sponsors needed for certain transactions  Regulation by the LSE  No trading record required  No minimum amount of shares to be in public hands  In most cases, no prior shareholder approval required for transactions  Normally, admission documents not pre-vetted by Exchange or UKLA but by nominated adviser  Nominated adviser required at all times AIM and Main Market are structured differently to assist different types of companies Main Market

17. November 200517 AIM: the international market for smaller and growing companies AIM companies: 1,311 Overseas AIM companies: 185 New companies on AIM in 2004: 355 - 294 UK - 61 overseas Capital raised since 1995: US$35bn Capital raised in 2004: US$8.8bn - US$ 7.8bn UK companies - US$ 1.02bn overseas companies AIM Key statistics Source: London Stock Exchange trade statistics – September 2005

18. November 200518 AIM – since launch YTD 2005, there were 389 admissions to AIM, the largest number since launch. Source: London Stock Exchange trade statistics – September 2005

19. November 200519 All companies must appoint a Nomad at all times Advisers such as accountants and lawyers are brought on board to assist with the floatation AIM companies normally work alongside an Investor Relations Company. The Nomad will advise on this. The Nomad will draft and prepare the AIM admission documentation and carryout the due diligence required. A 10 day announcement is required by all AIM applicants giving notification of your intention to join the market AIM – Admission Process

20. November 200520 AIM - Continuing Obligations AIM companies are subject to the AIM Rules which outline the continuing obligations of being on a public market. Some of the key continuing obligations are: AIM companies must have a Nomad at all times, otherwise they will be suspended from the market AIM companies must disclose all price sensitive information in a timely manner including substantial transactions, related party transaction, reverse takeovers and other miscellaneous transactions All directors accept full responsibility, collectively and individually for the AIM Rules Half Yearly and Annual Report and accounts required in adherence with deadlines Restrictions on deals for directors and applicable employees on AIM securities during close periods

21. November 200521 AIM companies by market capitalisation 79% of companies on AIM have a market capitalisation under $50million. 27 companies on AIM are capitalised above $440million. Source: London Stock Exchange trade statistics – September 2005

22. November 200522 AIM: a diverse market Source: London Stock Exchange trade statistics – September 2005 AIM – a diverse market, with 33 sectors represented.

23. November 200523 Secondary markets wAverage daily turnover = £72million w6,600 average bargains per day during 2004 wMarket is price driven – prices quoted and liquidity provided by 33 market makers wOne AIM Index at present – FTSE AIM Index - which comprises all AIM companies wLiquidity varies across the market Source: Teather & Greenwood, Institutional Investors in AIM

24. November 200524 Investment in AIM wAll but one of the main UK institutions invests in AIM wValue of Institutional holdings = £10billion wTop 3 by value: CDS & Co, Fidelity, Artemis, Chase, Foreign & Colonial wTop 5 by number of investments: Foreign & Colonial, Artemis, Fidelity, Framlington, Gartmore w80% of secondary market bargains are retail Source: Teather & Greenwood, Institutional Investors in AIM

25. November 200525 Case study – Russian AIM Company, Celtic Resources Hldgs Celtic Resources Core business activities The ownership and operation of gold mines in Russia and Kazakhstan, two of which are already in production. The Group is also exploring and developing other base metal and hydrocarbon prospects in the Former Soviet Union, and holds minor oil and gas interests in the UK. Transaction Synopsis Date of Admission : 14 October 2002 Market: AIM Transaction: Placing Market Cap. at admission: US$68m Capital raised: US$9.4m Mkt. Cap. as of 06 Sept 2005:US$244m FTSE Classification: Gold Mining

26. November 200526 Case study – Russian AIM Company, Peter Hambro Mining Plc PETER HAMBRO MINING Core business activities Peter Hambro Mining Plc has 10 gold sites, two of which, Pokrovskiy and Pioneer are in production. Pokrovskiy is where Peter Hambro Mining Plc started mining and produced its first gold in 1999. It is approximately 320 km north-northwest of the regional capital, Blagoveschensk, and 50 km north of the border with China. Pioneer entered production this year and is located approximately 40 km from Pokrovskiy. Peter Hambro Mining Plc is involved in the mining of gold ore and the production of dor bars which are sent for refining into London Good Delivery bars of gold and silver at a refinery in Krasnoyarsk. Most of the gold is currently sold to Sberbank in Moscow and the silver is sold to other banks in Russia. Under Russian law, the group has the right to export its product, once refined, to be sold for hard currencies. Transaction Synopsis Date of Admission : 29 April 2002 Market: AIM Transaction: Placing Market Cap. at admission: US$67m Capital raised initially: US$20.3m Mkt. Cap. as of 6 Sept.2005: US$1.09bn FTSE Classification: Gold Mining

27. November 200527 Case study –Ukrproduct (UPG)- First Ukrainian group on AIM Ukrproduct Group Ltd Core business activities Ukrproduct Group (UPG) is one of Ukraine's leading producers of branded foods, the company's main business focuses on the production and distribution of branded food products, namely packaged butter and processed cheese, to wholesale and retail outlets in Ukraine through its own distribution network. UPG also produces dried-milk powder for export to countries across Europe as well as the Far East. Transaction Synopsis Date of Admission : 11 February 2005 Market: AIM Transaction: Placing Market Cap. at admission: US$41m Capital raised initially: US$11m Mkt. Cap. as of 06 Sept.2005: US$45 FTSE Classification: Food Processors The funds raised will be utilised to invest in: New plant & equipment in core sectors Expansion of distribution network Provide additional working capital for the group

28. November 200528 Case study – Nelson Resources – Among the largest placings on AIM NELSON RESOURCES Core business activities Nelson Resources is a fast-expanding Bermuda-registered, Toronto-listed independent, which over the past two years has picked up several oil production projects in Kazakhstan and which recently made its debut on the London Stock Exchange's AIM market Transaction Synopsis Date of Admission : 19 July 2004 Market: AIM Transaction: Placing Market Cap. at admission: US$886m Capital raised: US$120m FTSE Classification: Oil & Gas Nominated Advisor: Canaccord Capital Limited Broker: Hoare Govett Limited

29. November 200529 Case study – Russian AIM Company, Urals Energy Public Company Limited URALS ENERGY Core business activities Urals Energy is an independent exploration and production company with its principal assets and operations in Sakhalin Island, Timan Pechora and the Republic of Udmurtia, Russia. Transaction Synopsis Date of Admission : 09 August 2005 Market:AIM Transaction:Placing Market Cap. at admission: US$389m Capital raised initially: US$138m FTSE Classification:Oil & Gas – Exploration & Production “We are delighted that our IPO has been so positively received by investors. The offering will allow us to continue with our exploration and development program in Russia and provide flexibility to our capital structure. Becoming a public company has been an important milestone for us.” William Thomas, Chief Executive Officer of Urals Energy

30. November 200530 Case study – Russian AIM Company, Rambler Media Ltd RAMBLER MEDIA Core business activities Rambler Media is an integrated and diversified Russian language media, entertainment, services and content delivery company with three main segments: internet services, mobile value added services and television broadcasting. Rambler.ru, Rambler media’s portal, is one of the most popular portals and search engines with the global Russian speaking community. Transaction Synopsis Date of Admission : 15 June 2005 Market: AIM Transaction: Placing Market Cap. at admission: US$m158 Capital raised initially: US$m46 FTSE Classification: Publishing & Printing “We are very pleased to be admitted to trading on AIM and would like to thank investors for their strong support and interest in our business.” Irina Gofman, CEO of Rambler Media

31. November 200531 AIM: Top 10 IPOs by money raised in 2005 Source: London Stock Exchange trade statistics – 2005 CompanyAdmission date Country of OriginMoney raised at admission £m Sub sector MELROSE26/05/2005UK201.99Other Financial RAVEN RUSSIA29/07/2005UK (CIS focused)153.00Real Estate Holding & Development DAWNAY DAY CARPATHIAN26/07/2005UK (CEE focused)140.00Real Estate Holding & Development TRADING EMISSIONS21/04/2005UK135.00Other Financial EMPIRE ONLINE15/06/2005British Virgin Island123.47Media Agencies BILLING SERVICES GROUP15/06/2005Bermuda84.13Transaction and Payroll Services URALS ENERGY09/08/2005Cyprus (CIS focused)74.00Oil & Gas- Exploration & Production IBS OPENSYSTEMS23/03/2005UK56.00Software UTILICO EMERGING MARKETS UTILITIES 20/07/2005Bermuda52.50Investment Companies BLACK SEA PROPERTY FUND (THE) 14/03/2005UK (CEE focused)50.14Real Estate Holding & Development

32. November 200532 Russian/CIS website www.londonstockexchange.com/ru www.londonstockexchange.com/ru/AIM