Micro Credit Organization “A-Invest” Activity results of the company from 2004 to 2007

The Limited Liability company Micro credit Organization «A - INVEST» is the legal entity, carrying out activity on giving credits and works by the regulation of the Law of Republic of Kazakhstan «About Micro Credit Organization» established in March,6,2003, № Maximum amount of micro credit per one borrower should not exceed thousand-fold rate of the monthly minimum specified rate authorized by the Law of the Republic of Kazakhstan «On Republican budget» for a certain fiscal year, for 2008 it is = 1168 tenge, tenge per one borrower ( USD, 1USD=120KZT). MCO «A - INVEST» began it's activity in January 05, The authorized capital is tenge ( USD). The certificate on state registration № ТОО from September 26, The head office is located in The South Kazakhstan Oblast, Shymkent, micro district Karasu, house № 54/42. The Registration Number of Tax-payer Bank Identifier Code Current Accounts – in USD , in KZT in the South Kazakhstan Branch of Joint – Stock Company «Bank Turan Alem» MCO «A - INVEST» is the member of Association of Microfinance Organization of Kazakhstan.

The Mission of the Company One of the main purposes of Micro credit Organization «A - INVEST» is to support the small and average business in Kazakhstan to bring in the contribution to strengthening stability and prosperities of the national economy.

To have branches in all regional centers of Kazakhstan To reach assets up to 3,6 – 4,2 billion tenge (30-35million USD) Development strategy of the Company for

Necessary resources for achievement of the purposes of strategy resourcesSufficiencyMeasures Financial resourcesAre unsufficientAttraction of investors Human resourcesAre insufficient in the long term Creation of a HR department, training of the personnel The appropriate organizational structure allowing to develop and to supervise the development of a branch network Is introducing Existence of technologies and business of processes for development of a branch network (establishing, control, marketing etc.) Is present Tested on Turkestan branch Presence of monitoring systems of quality of credit activityIs present

Achievements and lacks of the Company in AchievementsLacks 2004 Beginning of the activity Making General Financing agreement with BTA Membership in AMFOK 2005 opening sub-offices at JSC “Bazar” Creation of web - site Increasing of the loan portfolio from 0,4mUSD up to 0,73mUSD 2006 Carrying out the rating(Microfinanza Rating) Increasing of the loan portfolio from 0,73 up to 1,45mUSD opening sub-offices at markets «Eurasia» и «Begzhan» 2007 branch out in Turkestan Increase of the final income more than in 14 times Start the transfer accounting policies in line with International Accounting Standards Preparation to international audit opening sub-office at the market«Samal» underfulfilment of the loan portfolio plan opened less branches, than was planned Increasing PAR and loan loss reserve

The basic recommendations MicroFinanza Rating ( ) recommendationsSpent measures Bring accounting policies in line with International Accounting Standards In June 2007 it was made the agreement with the consulting group of representatives of audit and IT companies to transfer our accounting policies in line International Accounting Standards, improvement of a used program platform according to IAS and further assistance at realization of the international audit. This program is maintained and financed by the Program of business advices of EBRD (program BAS). Carrying out of the international auditThe company plans delivery of the financial reports of 2007 according to the International Accounting Standards and retrospective recalculation of financial results of 2006 and 2005, and carrying out of the international audit during 1-st half-year of 2008, for 2006 and 2007 Funding diversification (dependense from only investor) After the realization of international audit we will attract funds and investments from international and our investors. Decrease the “key person” riskThe “key person” risk will be decreased by introduction of new organizational structure (next slide) Membership in Credit BureauMembership in Credit Bureau Is planning in the beginning of the 2008 Accepting of the strategic plan of development of the company Will be accept on the 1 st session of BoD, which will be established according the new organizational structure Diversification of loan products New loan products will be introduce after the analysis of effectiveness during 6 month. (the program without confirmation of incomes was introduced and suspended, “credit line” and “budget express” are in development

Shareholders Board of Directors Director Financial director Accounting and Reporting Department Investment Management IT Management The Head of the Legal Department Methodology and business process manager HR Manager Strategic managing director Internal Audit Service Risk Management Branch network managing director Support and development of the branch network Department Branches Sub offices Directors Credit Committee Marketing service Organizational Structure of the Company

Plans for 2008  Carrying out the international audit  Introduction of the new organizational structure  Branch out Shymkent according to the new structure and division company to the centers of profit and centers of expenses  Branch out in Taraz and/or Kyzylorda ***  Increasing of the loan portfolio up to 3,34mUSD*** *** Note: in condition of sufficient funding

Dynamics of balance for (in thousands USD) Data for01/200501/200601/200701/2008* Total assets Cash, settlement account Loan portfolio Debt receivable Fixed assets and materials Liabilities Authorized capital167 Total income Loans Other liabilities57 Depreciation of fixed assets62038 Advance payments to the budget-46 Provision expenses * - the results of 2007 are preliminary and will be corrected

in thousands USD

Dynamics of income and expenses for (in thousand tenge) Data for * Income: Income from loan portfolio: Interest received on loans Fees and commissions on loans Penalty revenue Other income:16 Expenses: Financial expenses: Interest paid on borrowings Fees and commissions on borrowings difference in exchange 63 Operating expenses: Salary, social taxes, other Rent of the office Rating and IAS expenses19 Depreciation of fixed assets Other expenses which are not more than 1 % from total expenses * - the results of 2007 are preliminary and will be corrected

in thousands USD

Description of loan products Working  DIRECT MORTGAGE loans  Terms of loan: up to 2 years  trenches: single loan  Credit security: real estate  Express loans:  Terms of loan : up to 1 year  Target group: The businessmen trading on the markets  Credit security : Trade boutique and shifting stock of merchandise, group guarantee  Special conditions : obligatory confirmation of income as realization of financial analysis  MOTOR TRANSPORTS MORTGAGE MICRO CREDIT (Altered) ):  Terms of loan : up to 6 months  Credit security : Motor transport is accepted as security. Such motor transport is kept on MCO garage within the whole crediting period. In development:  Credit line:  Terms of line: up to 5 years  Tranches : up to 2 years  Number of tranches: no restrictions, with quarterly monitoring  Credit security : real estate  Singularity: convenience for client – registration of real estate only 1 time  Budget express:  Terms of loan : up to 1 year  target group: budget workers  Credit security : salary, group guarantee of colleagues  Special conditions : obligatory confirmation of income as pension payments and report of credit bureau

2% 3% 2% 1% 89% 3% Express loans at market JSC“Bazar”(2,10%) Express loans at market«Eurasia» (2,72%) Express loans at market«Begzhan»(2,32%) Express loans at market«Samal»(1,35%) DIRECT MORTGAGE loans (88,46%) MOTOR TRANSPORTS CREDIT(3,04%) 2% 3% 2% 1% 89% 3% Express loans at market JSC“Bazar”(2,10%) Express loans at market«Eurasia» (2,72%) Express loans at market«Begzhan»(2,32%) Express loans at market«Samal»(1,35%) DIRECT MORTGAGE loans (88,46%) MOTOR TRANSPORTS CREDIT(3,04%) Analysis of loan portfolio for Portfolio structure Total loan portfolio 1,945m USD

Analysis of the loan portfolio for Share in profits of credit products Total income 0,77m USD 6% 5% 3% 1% 82% 3% Express loans at market JSC “Bazar” (6,14%) Express loans at market “Eurasia”(4,61%) Express loans at market “Begzhan” (3,18%) Express loans at market “Samal” (1,07%) DIRECT MORTGAGE loans (82,26%) MOTOR TRANSPORTS CREDITS (2,75%)

Analysis of the loan portfolio for % 42% 3% 5% Direct mortgage loans (290 clients) Express loans (241clients) Motor transport loans (18 clients) Employees (27 clients) Distribution of the loan portfolio by the credit products and clients (total portfolio 1 945m USD, total number of clients 576)

Analysis of the loan portfolio for Profitableness of the loans products (in%) 0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 16,00 18, среднее Express loans at market “Eurasia” Express loans at market JSC “Bazar ” DIRECT MORTGAGE loans MOTOR TRANSPORTS CREDITSExpress loans at market “Begzhan” Express loans at market “Samal” Total portfolio

Distribution of the loan portfolio by the branches of economics (total portfolio 1 945m USD) Analysis of the loan portfolio for ,34% 37,19% 5,30% 0,16% trade (58,8%) Loans for consumption (38,12%) service (2,9%) agriculture (0,17%)

Analysis of the loan portfolio for Assignations in loan loss reserve (in thousand USD) Asset categoryNumber of borrowers Outstanding portfolio For provision %Amount of provisions Standard: st category nd category Doubtful: st category321075%5 2 nd category23710%4 3 rd category192120%4 4 th category category125850%29 Bad debts717100%17 Total ,04%59