1. PRAVEX BANK THE BANK OF NATIONAL SCALE UAH 50mn, 3-year bond, annual put, 13.5% coupon

2. BANK OF NATIONAL SCALE CONTENTS PRAVEX-BANK 2 Term Sheet3 Brief Profile & History5 Retail as a strategic priority7 Operational highlights13 Key financial information16

3. BANK OF NATIONAL SCALE TERM SHEET PRAVEX-BANK 3 Issuer JSB PRAVEX-BANK Bond Senior Unsecured Obligation Bond rating B2/A3.ua (Moody’s, international and local scales, respectively) Amount UAH 50 000 000 (fifty million) Face value UAH 1 000 (one thousand) Tenor 3 years Coupon rate 13.5% per year (fixed for the first year of the bond) Options The Bond is putable on the second and the third years Coupon Frequency Quarterly Day count Actual/365 Issue date 11 December 2006 Maturity date 13 December 2009 Listing PFTS, Bloomberg Governing law Ukrainian law

4. BANK OF NATIONAL SCALE TERM SHEET (CONT’D) PRAVEX-BANK 4 Bond Covenants According to the Prospectus, a bond holder can put the bond at par if the Issuer: 1. Fails to pay interest within five days after the due date 2. Defaults on any other debt obligations totally exceeding USD 10mn 3. Challenges in court the validity of this bond issue 4. Loses any necessary licence/permit to service this bond issue, including, but not limited to, a revocation of the general banking licence 5. The NBU assigns a Temporary Administration to assess its financial status 6. Decides to withdrawal from business activities 7. Fails to execute any court decisions (or its equivalents), resulting in a USD 5mn fine, if such decisions have not been cancelled or suspended within 60 days (or later if applicable for such decisions) since the date of introducing such decisions, they haven't been cancelled or stopped for a period of time. BOND COVENANTS In line with international practice, PRAVEX-BANK decided to accept a number of covenants, which are not yet a standard for the Ukrainian market

5. BANK OF NATIONAL SCALE BRIEF PROFILE & HISTORY PRAVEX-BANK 5 PRAVEX-BANK is among the pioneers of the domestic banking sector, which received its license in December 1992, about a year after Ukraine gained Independence. Since inception, servicing private individuals and SMEs was the focus of PRAVEX- BANK, which finally accumulated the eights largest retail loan book servicing 2mn customers through 425 offices and more than 1,500 POS outlets. Retail loans contributed 86% to the total loan portfolio, while deposits from private individuals contributed 98% in total. PRAVEX-BANK pursues a strategy of a universal bank with an emphasis towards retail which allows to offer a product mix unreachable for pure retail banks. PRAVEX-BANK was set up by Leonid Chernovetskiy who, upon his election as Kyiv’s mayor in March 2006, transferred the bank’s management to his son, Stepan Chernovetskiy.

6. BANK OF NATIONAL SCALE Historic Milestones PRAVEX-BANK 6 19921994199619982000200220042006 PRAVEX-BANK is registered and is opening its first offices in Kyiv and suburbs Pravex starts servicing international payment cards and sets up Client-Bank system Pravex issues payment cards (Eurocard / Mastercard) and becomes the first to offer precious metals operations to individuals Pravex starts issung Visa & AmEx cards, joins Western Union and receives a Euromoney award In-house express money transfer system Pravex Telegraph is introduced. The Bank also develops an Internet version of its Client-Bank system Loan book exceeds UAH 1bn and Euromoney issue the Best Developing Bank award. Business, a reputable business publication, grants an award for Individual Deposits. Pravex becomes the member of Unistream and Moneygram wire payment systems. It starts issuing business and senior Visa cards and receives an Appreciation Award from AmEx.

7. BANK OF NATIONAL SCALE Retail as a strategic priority PRAVEX-BANK 7 Various deposits Debit /credit cards Utilities payments Internet banking Travelers’ checks Instant money transfers Operations with precious metals Individual safes Securities trading Pension program FX services Mortgages Car Loans Consumer loans

8. BANK OF NATIONAL SCALE Retail as a strategic priority PRAVEX-BANK 8 First in Kyiv and then regionally, PRAVEX-BANK has committed to individuals and SMEs and was awarded a public trust noted by a number of awards Various deposits Debit /credit cards Utilities payments Internet banking Travelers’ checks Instant money transfers Operations with precious metals Individual safes Securities trading Pension program FX services Mortgages Car Loans Consumer loans While high margin consumer lending has become a priority, the loan portfolio structure will remain conservatively diversified by a significant portion of secured mortgages and car loans

9. BANK OF NATIONAL SCALE Regional expansion and hefty returns 9 0 50 100 150 200 250 300 350 400 450 19951996199719981999200020012002200320042005 Growth of Branch Network PRAVEX-BANK PRAVEX-BANK has built a 425- strong network of branches as of October 1, 2006, and plans to open another 250 offices in 2007. Should these plans realize, Pravex will find itself among top ten locally owned banks in terms of the network size, making it a lucrative target for strategic buyers. Although 48% of the retail loan portfolio constitute secured mortgages, the commitment to this sector through a wide range of products allows to demonstrate a relatively high return on equity. High return on equity generated by retail lending ROE, 9M06 Household loan book/Total loan book

10. BANK OF NATIONAL SCALE Focus on the retail: key players 10 PRAVEX-BANK Local banks by retail deposit portfolio Pravex’s market share in retail lending By sources of funding, PRAVEX- BANK resembles a State-Owned Savings Bank of Ukraine (Oschadbank). The ratio of private deposits will decrease as Pravex further taps capital markets, both domestically and internationally. The eights largest position in the retail lending was achieved on the back of domestic funding, in contrast to the Pravex’s peers which already tapped international markets

11. BANK OF NATIONAL SCALE Strength of coverage PRAVEX-BANK 11 The number of branches for the selected banks, 2006 1845 PRAVEX-BANK’s retail network compares favorably to a number of the first and the second tier banks and is a core of its retail-driven strategy. Number of branches

12. BANK OF NATIONAL SCALE Retail in detail PRAVEX-BANK 12 200420059M06 Number of car loans per year1,4174,1323,089 Volume of car loans per year (UAH m)81.3225.0117.6 Number of consumer loans per year (000)117.7183.2n/a Volume of consumer loans per year (UAH m)192.0369.4700.3 Number of POS outlets (as at the end of period)653511,514 Source: PRAVEX-BANK 65 351 1514 0 200 400 600 800 1000 1200 1400 1600 200420059M06 Number of POS outlets Car and consumer lending Retail loan portfolio is evenly diversified between mortgages (48.2%), car loans (17.9%) and consumer loans (33.7%). PRAVEX-BANK is among pioneers in credit card loans which have a 0.2% share. In 9M06 the number of consumer loans via POS terminals doubled YoY to nearly USD 140mn. PRAVEX-BANK is present in all major household appliance chains, including Foxtrot, Eldorado and Domotechnika.

13. BANK OF NATIONAL SCALE Operational Highlights PRAVEX-BANK 13 Various deposits Debit /credit cards Utilities payments Internet banking Travelers’ checks Instant money transfers Operations with precious metals Individual safes Securities trading Pension program FX services Mortgages Car Loans Consumer loans

14. BANK OF NATIONAL SCALE Funding growth 14 0 100 200 300 400 500 600 200120022003200420059M06 (US$m) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other assetsSMEs lending Retail lendingRetail loans / Ttl loans (rhs) 0 100 200 300 400 500 600 200120022003200420059M06 (US$m) Due to banksCustomer accountsOther liabilitiesEquity PRAVEX-BANK Funding dynamics Growth of assets Between 2001 to 9M 2006 toal assets grew at a CAGR of circa 25%. The increase in assets was mainly fuelled by retail lending which grew by 36.6% on average in 2003-9M06. PRAVEX-BANK has nearly 100,000 deposit accounts. In 9M06, volume of retail deposits increased by 36% YTD, which is 9.5 percentage points higher than the average growth posted by the banking system.

15. BANK OF NATIONAL SCALE Capitalization & Leverage 15 5.1 6.2 8.2 9.8 10.3 9.2 11.4 0 2 4 6 8 10 12 14 2003200420059M06 (%) Shareholders' equity/AssetsShareholders' equity/Loans 11.0 14.0 7.0 8.0 11.0 0 2 4 6 8 10 12 14 16 200320042005 (%) CARTier 1 PRAVEX-BANK The majority shareholder made a capital injection of USD 6mn in September 2006 which will increase the share capital by 14% once this is officially registered. Tier 1 capital grew by 33.2% to USD 24.5mn in 2005, while the total capital rose by 25% to USD 31.5mn. The bank follows a policy of gradual capital injections and the total capital is expected to reach USD 50mn by the end of 2006. Capitalization coefficients Leverage coefficients

16. BANK OF NATIONAL SCALE Key Financial Information PRAVEX-BANK 16 Various deposits Debit /credit cards Utilities payments Internet banking Travelers’ checks Instant money transfers Operations with precious metals Individual safes Securities trading Pension program FX services Mortgages Car Loans Consumer loans

17. BANK OF NATIONAL SCALE Key Ratios PRAVEX-BANK 17

18. BANK OF NATIONAL SCALE Balance Sheet PRAVEX-BANK 18

19. BANK OF NATIONAL SCALE Income Statement PRAVEX-BANK 19

20. BANK OF NATIONAL SCALE PRAVEX-BANK 20 JSCB «PRAVEX-BANK» 9/2, Klovsky Uzviz Kyiv 01021 Ukraine Investment department: Vladislav Novikov, Vasiliy Bartkiv Tel.: (044) 521-02-67 e—mail: novikov@pravex.kiev.ua Call centre of the Bank: In Ukraine: 8-800-500-4-500 (round the clock and from the stationary phones in Ukraine), Tel. in Kyiv: (044) 201-16-61, 201-16-62 (round the clock). e-mail: bank@pravex.kiev.ua e-mail: bank@pravex.kiev.uabank@pravex.kiev.ua web: www.pravex.com web: www.pravex.comwww.pravex.com