Continue leadership positions on the commercial vehicle market August 2010 Bo Inge Andersson President & CEO, GAZ Group

GAZ GROUP PRODUCT STRATEGY  New family of low floor buses  Alternative fuels and environmental solutions  Bus modular concept development and implementation across all bus segments Buses  Off road truck product line upgrade and development  New Truck portfolio to offer medium duty trucks, road trucks and off- road vehicles with different GVW Trucks  Current Gazelle improvements  Updated power train  Diesel engines  Alternative fuels  Process & product quality continuous improvement  New Gazelle development Light commercial vehicles  GAZ to utilize modern manufacturing capability and open capacity  Ongoing discussions with the major global players  Opportunities for components localization Passenger cars  Modernization and upgrades to improve performance of gasoline engine,  LPG and CNG options  Light diesel solution  Euro 4/5/6  Medium diesel development with AVL  Heavy diesel, Renault license Power train

MAIN FOCUS AREAS Sales increase for all GAZ Group Divisions Quality improvements, warranty claim reduction, reduce cost of ownership Improve operational efficiency New products

LCV QUALITY IMPROVEMENT Quality performance results July 2009 – July 2010 (12 month) Warranty incidents per thousand vehicles – 2 months in service (2MIS IPTV ) reduction by 37% MFG direct run loss – average number of defects per vehicle in production ( DRL) reduction by 35% Supplier incidents per thousand vehicles (IPTV) reduction by 46%

IMPROVE OPERATIONAL PERFOMANCE Projects Results (12 months) Implementation of direct pull system: Sales  production  purchasing Facilities consolidation and optimization Consolidation and creation of processes/material flows next to assembly lines Work stations standardization Cost reduction Facilities consolidation and optimization In-process inventory reduction Extra equipment elimination Revenue per employee increase By 42% By 47% By 60% By 46%

GAZelle CONTINOUS IMPROVEMENT 4х4  Extended product line in 4х4 segment SOP: SOP:  Payload increased to 2 tons  Extended product line   Improved reliability  Improved consumer properties  Reduced cost of ownership  Product line extension  Warranty retained for engine and fuel system  Improved frame rigidity for long vehicle  Improved body stiffness for metal van versions  Exhaust system with improved corrosion protection  Immobilizer GAZelle Business LPG Diesel  Reduced cost of ownership  Reduced fuel consumption  Expansion of product line  Extended engine service life  Improved gearbox GAZelle Business + CNG  Reduced cost of ownership  Extended product line  Extended engine offering  Retention of warranty on all vehicle’ elements  Use of the cheapest fuel for today GAZelle 4,2t July 2010 February 2011 March 2011December 2010

Cost of Ownership 20% Warranty km Vehicle km systems  Steering  Braking (brake response)  Suspension  Heated mirrors  3-point seat belts  ABS ( 4x4 & BUS)  Energy-absorbing steering column Safety Fuel Efficiency 10%-Petrol; 20% - LPG 10%-Petrol; 20% - LPG Вячеслав Лымарь, Ижевск, предприниматель: «Моя «Газель» окупила себя за 9 месяцев. Опять же – не имею возможности простаивать месяц. А для «Газели», если что, запчасти всегда под рукой. Алексей Зарипов, Пермский край, предприниматель: «Эта машина помогла мне стать хозяином своей жизни. … пока со мной мой автомобиль, мне не страшно оказаться без работы, я сама себе начальник, я спокоен за себя и свою семью». Андрей Логинов, ген. Директор ООО «Автотен»: окупаются быстрее и дешевле, учитывают специфику именно российского бизнеса перевозок, чего нет у иномарок... достойной замены мы на сегодняшний день не видим. GAZELLE-BUSINESS IMPROVEMENTS and CUSTOMERS VOICES

NEW BUS PRODUCT and 2010 LAUNCHES PAZ-3204 PAZ length: 7,6 м. engine: CUMMINS (YMZ) transmission: ZF axle: KAAZ length: 8,5 м. engine: CUMMINS (YMZ) transmission: ZF axle: KAAZ GOLAZ 5251 Intercity engine: YMZ transmission: ZF axle: RABA LIAZ-5292 City, low floor Hybrid (EURO-6)

HEAVY DUTY TRUCKS PRODUCT DEVELOPMENT and 2010 LAUNCHES. Heavy duty off road vehicles for commercial applications with GVW 33-40t, flat nose cab URAL Е13 – Е26URAL Е33 – Е40 Off road vehicles for commercial applications: major facelift, conventional and flat nose cab

MAJOR POWER TRAIN 2010 LAUNCHES Heavy diesel YMZ cylinders 11 L Renault license Medium diesel YMZ & 6 cylinders 4.4 L/6.6 L Cooperation with AVL

SUMMARY GAZ Group is aimed at customer satisfaction GAZ Group set the direction for improvements in quality and cost of ownership of its products GAZ Group constantly strives to improve and update its diversified commercial product vehicle portfolio GAZ Group will be successful by having a collaborative relationship with its dealers, suppliers and customers GAZ Group will continue to be the market leader in commercial vehicles in Russia