İŞ INVESTMENT İş Investment is the investment arm of İş Bank and the leading investment banking institution in Turkey. İş Investment stands out as the only listed brokerage house in the country offering variety of services, such as; Brokerage (Trading securities including domestic and international equities, fixed income and derivatives) Investment Advisory Asset Management Corporate Finance (Public offerings, M&As and strategic consultancy) Research

Best Equity House in Turkey. İş Investmentrewarded as the Best Equity House in Turkey within the frame of Euromoney 2007 Awards for Excellence İş Investment rewarded as the Best Equity House in Turkey within the frame of Euromoney 2007 Awards for Excellence

Overview of Turkish Capital Markets /1H 2007/1H 2006/1H 2007/1H 380,5 bn 344,5 bn EQUITY MARKET (TRY) TURKISH DERIVATIVE EXCHANGE (TRY) 70,2 bn 12,2 bn Falling short of expectations, equity market remained relatively weaker in 2007/1H compared to its performance attained in the first half of The evolving derivative market also cannibalized some part of trading volume from the equity market. In the process, the derivative market displayed an outstanding performance, beating almost all estimates with 475% annual surge in 2007/IH. The actual trading volumes reached in this market in the first half of 2007 has surpassed our year-end target.

Overview of Turkish Capital Markets - 2 Pension funds will become the main driving force of the fund management business. The portfolio size of pension funds reached USD mn as of IH/07 from USD mn at the end of 2006 in the market, growing 41% with respect to Note that the AUM from the pension fund business was merely US$38 mn back in /10/2007 FUNDS) PENSION FUNDS – PORTFOLIO SIZE (USD) 913 mn mn mn BILLS & BONDS MARKET (TRY) 2006/1H2007/1H 420 bn 401 bn High volatility and uncertainties in the markets lead to a visible drop in the trading volume in the Bills and Bonds Market

Market Share in Equity Market We strengthened our leadership position in the first half of 2007, increasing our market share to 6,37% from 6,27% compared to the same period of 2006 while our trading volume decreased to TRY 21.9 bn from TRY 23.8 bn parallel to the contraction in overall market. The results we achieved in the first half is in line with our targets. 2006/1H 2007/1H 23,8 bn 21,9 bn 6,37% 6,27% EQUITY MARKET – İŞ INVESTMENT (TRY) Improving and solidifying our leadership position

Market Share in Bills & Bonds Market Our market share declined to 12,8% from 13,8% while our trading volume decreased to TRY 8,1 bn from TRY 13,1 bn thanks to the sheer contraction in overall market. Meanwhile, we have been maintaining our leading positions among the brokerage houses in the market for more than 4 years. 2006/1H 2007/1H 13,1 bn 8,1 bn 13,8% 12,8 % BILLS & BONDS MARKET – İŞ INVESTMENT (TRY) Holding one of the first two seats for more than 16 consecutive quarters.

Market Share in Derivative Market Our derivative trading volume surged to TRY 12 bn with over 252% rise over the same period of Our market share retreated to 17% as many players joined to the market. Still, our leadership is uncontested. Our first half trading volume in the derivatives market is quite close to the target figure (TRY 14 bn.) we had set for the full year. Our trading volume will continue to elevate as more new instruments will start trading in the market iş Investment, as pioneer of the new products, will bolster its leadership via those products. Our client base in derivative products is getting wider in each quarter (foreign & domestic). 2006/1H 2007/1H TRY 3,6 bn TRY 12 bn 29% 17% DERIVATIVE MARKET – İŞ INVESTMENT New derivative instruments are in the pipeline

Trading Volume in International Capital Markets TRADING VOLUME IN INTERNATIONAL CAPITAL MARKETS 2006/1H 2007/1H Our trading volume in international capital markets reached USD 3 bn, surging by 246% with respect to the same period of The share of international derivatives is getting larger portion of the overall volume. The new instruments will likely give breadth and depth to our increasing volumes in this market. (USD Million)

Asset Management We experienced a notable recovery in mutual fund business in IH/2007 following the major shake out in 2006, which had resulted in major redemptions from the mutual funds. Pension funds surged by 32% on YTD basis in IH/07. 50% of İş Asset Management shares were purchased from İş Bank at the pre-determined price (TRY 30,5 mn). Now, İş Investment has 70% direct stake in İş Asset Management. İş Asset Management -as 70% affiliate- will be consolidated to İş Investments results starting from Q3/2007. İş Investments IH/07 results includes merely 20% consolidation of İş Asset Management /1H /1H ASSET UNDER MANAGEMENT - PORTFOLIO SIZE (TRY Million) PENSION FUND – PORTFOLIO SIZE (TRY Million) /1H /1H

ISDJE – Exchange Traded Fund (ETF) İş Yatırım Dow Jones Turkey Equal Weighted 15 A Type Exchange Traded Fund - founded İş Yatırım Dow Jones Turkey Equal Weighted 15 A Type Exchange Traded Fund - founded by İş Investment- was listed at Istanbul Stock Exchange on 25th May, 2007 with code of by İş Investment- was listed at Istanbul Stock Exchange on 25th May, 2007 with code of ISDJE. ISDJE.

Corporate Finance (Public Offerings – M&As) The largest privatization offering in the ISE: HALKBANK We performed the largest privatization offering in the Turkish capital markets with Halkbank. We became the only listed brokerage house at the ISE. We executed USD 90,4 mn amounted 2 M&As while it was USD 34,9 mn in the same period of Our corporate finance revenues quadruppled to TRY mn in QII, jumping 473,6% compared to 1Q/2007 figure. 640 PUBLIC OFFERING SIZE (USD Million) 2006/1H 2007/1H M&As (USD Million) 2006/1H 2007/1H 34,9 90,4

Title of Corporation Share in Capital (%) Q1/2007 Share in Capital (%) Q2/2007 Maxis Securities100 % Camis Securities99,79 % İş Investment Trust 23,60 % İş Private Equity 20,08 % İş Asset Management 20 % 70 % Turkish Derivatives Exchange6 % Growing Enterprise Market Automatic Quotation (GEMAQ) 5 % İş REIT1,37 % Yatırım Finansman Securities0,55 % Subsidiaries

Income Statement İş Investment 2006/1H 2007/1H YoY % TRY (000) Operating Income: Interest and trading income ,862% Commission revenues % Income from corporate finance % Other income % Total Operating Revenues Total Operating Revenues % Operating Expense % Net Operating Profit Net Operating Profit % Other Expenses % Financial Expenses % Minority Expense n.m. EBT ,3% Tax % Net Profit %

Operating Revenues TRY (000) İş Investments total revenues amounted to TRY mn in 2007/1H, up by 86% on YoY basis. Interest and trading revenues displayed a sharp growth, increasing to TRY mn from TRY mn. The dismal 2006/IH results could be attributed to the low credit volumes and the negative impact of the turmoil. Commission revenues reached TRY mn, surging by 173% over QI/07 figure, the commissions had totaled TRY in the first half of Other revenues amounted to TRY mn down from TRY mn due to the mainly decline in marked to market value of İş Private Equity. 2007/1H 2006/1H Interest and Trading Commissions Corporate Finance Other

Brokerage & Trading Commissions (YoY) /1H 2006/1H Brokerage Asset Management Other 15,1 3,2 4,8 2,9 1 (TRY Million) 0,7 17,2 Brokerage commissions jumped to TRY 17.2 mn, recording roughly 1.5 x rise in QII over its QI performance. YoY increase is 14%. Commissions on derivatives rocketed by five-folds on YoY basis in 2007/1H, reaching TRY mn vs TRY 619K in 2006/1H. Fees on asset management rose to TRY 4.8 mn due to the effect of İş Asset Management consolidation.This account will likely post better results as 70% of İş Asset Management will be consolidated

Brokerage & Trading Commissions (QoQ) 2007/1Q 2007/2Q 2007/1Q 2007/2Q 2007/1Q 2007/2Q BROKERAGE ASSET MANAGEMENT OTHER (TRY Million) ,57 4, (TRY (TRY Million) (TRY Million)

Margin Trading 2006/1H 2007/1H INTEREST ON LOANS EXTENDED TO CLIENTS (TRY 000) YoY Growth 149 % Interest income on margin accounts recorded 149% YoY growth, reaching TRY 6.5 mn in the first half of the year, surging by TRY 3.9 mn with respect to the same period of Loans to clients reached TRY 69,8 mn as of 2007/1H, surging by 231% with respect to the same period of OUTSTANDING LOANS (TRY Million) 1Q/06 2Q/06 3Q/ Q/07 2Q/

Operating Expenses Employee Costs % Severance % Depreciation ,3% Goodwill % Consultancy % Operating Costs % Sundry Taxes % Advertisement % Marketing and Dist % Other % Total % TRY (000) 2006/1H 2007/1H YoY TRY (000) 2006/1H 2007/1H YoY Operating costs recorded 41% rise on YoY basis. The cost structure includes several one-off expenses such as IPO expenditures. Foreign marketable security transaction shares and other marketing, selling and distribution expenses also emerged as important cost components of operating expenses in the first half. A rise in employee expenses was observed in 2007/1H as indicated in 1Q/2007.

20 Private Equity Developing Private Equity Business Private equity activities have increased considerably over the last two years in Turkey. Completed exits of İş Private Equity are Cinemars, 30.25% annual yield in USD terms and Tuyap, 45.75% annual yield in USD terms. İş Private Equitys most recent investment in July was in Ode Insulation, a building materials company. The equity investment was $5 mn for a 17.24% stake. New projects are in the pipeline to be finalized in the second half of the year. İş Private Capital Track Record Exits İş Private Equity is the leader with profitable investments in the fast growing private equity market Firm Exit Price Investments Firm Investment IRR (1) İş Private Equity H1/2007 Results İş Private Equity announced a net income of $0.7 mn in H1/2007. Revenues of $12.6 mn in H1/2007 include mostly the sales proceeds from the Tuyap exit in February 2007 (at a price of $10.8 mn). The remaining revenue comes from Nevotek (a leading IP telephony application software developer), the only company İş Private Equity currently fully consolidates.

Maxis Securities Maxis Securities was established in one of the world financial centers London, UK with in the target of expanding its business lines to international capital markets. We expect the company to be fully in operation in QIII/07 as all the legal procedures have recently been completed. Maxis started to open new client accounts, which will likely expedite in the periods to come

Comments on Profit The first half profit confirms our year-end profit estimate. Full consolidation of İş Asset Management that started in QII/07 (merely 20% was consolidated) led the portfolio commissions to jump to TRY 4.8 mn in IH/07. The effect of 70% consolidation will be seen in next quarter. İş REIT shares amounted to nominal TRY 6.63 mn (TRY 13.3 mn in market İş REIT shares amounted to nominal TRY 6.63 mn (TRY 13.3 mn in market value), which are held in our accounts, form a potential profit for İş value), which are held in our accounts, form a potential profit for İş Investment. Investment. There are numerous corporate finance related projects in the pipeline that might significantly elevate our corporate finance revenues in the second half. We have been waiting for the legal approval for our new mutual funds.

HEAD OFFICE Is Kuleleri Kule-2 Kat Levent Istanbul Ph: (0212) Fax: (0212) – IZMIR BRANCH Talatpasa Bulvari No:27 Alsancak Izmir Ph: (0232) Fax: (0232) – KALAMIS BRANCH Fenerbahce, Fener Kalamis Cad. Tibas-Belvu Sitesi A2 Blok Daire 3 Kadikoy Istanbul Ph: (0216) Fax: (0216) ALMA ATA LIAISON OFFICE 181 Zheltoksan St. The Regent Almaty Oda 108 Almaata Kazakhstan Ph: (+73272) Fax: (+73272) ANKARA BRANCH Tahran Cad. No:3/ Kavaklidere - Ankara Ph: (0312) Fax: (0312) YENIKOY BRANCH Koybasi Caddesi Iskele Cikmazi No Yenikoy ISTANBUL Ph: (0212) Fax: (0212) LEVENT LIAISON OFFICE Yapi Kredi Plaza C Blok Kat 9 Bolum 25/B Besiktas, Istanbul Ph: (0212) Fax: (0212) SUBSIDIARYMAXIS SECURITIES LTD 8 Princes Street London EC2R 8HL UK Ph: (+44207) Fax: (+44207) İŞ INVESTMENT

The information in this report is prepared by İŞ YATIRIM MENKUL DEGERLER A.Ş. (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.