As of November 1 2006 Kazakhstan Mortgage Company JSC is able to meet its liabilities to the holders of KZ2CKY10A986 bonds - Bank TuranAlem JSC

/KASE, November 17, 06/ - Bank TuranAlem JSC (Almaty), which is a Representative of holders of KZ2CKY10A986 mortgage bonds (KASE's official list of "A" category, KZIKb3; KZT1, KZT4.5 bn.; January 1, 03 - April 1, 14, semiannual coupon, indexed on inflation rate, 9.5% APR for the current period) of Kazakhstan Mortgage Company JSC (Almaty, the Company), by an official letter informed Kazakhstan stock exchange (KASE) about conducting pledge status test (chose in action on mortgage housing loans), which is the security of the afore-mentioned bonds as of November 1, 2006. The checkup was conducted by the auditing company FINEX LLP. As it follows from the letter of a Representative of holders, in accordance with the conclusion of auditors the pledge status of company's immovables meets the requirements, made to mortgage housing loans in compliance with the legislation of the Republic of Kazakhstan, and also in accordance with "Main requirements to mortgage housing loans, chose in action on which is acquired by the joint-stock company Kazakhstan Mortgage Company and to management on their issue and to the asset management", and also "Rules of getting of chose in action on mortgage housing loans by the joint-stock company Kazakhstan mortgage company". Values of coefficients that determine the probability of redemption of the mortgage housing loan by a borrower are in tolerable limits. Payments on mortgage loans are transferred on timely basis. According to the message of the Representative, consistent with register of pledge of mortgage certificates on KZ2CKY10A986 bonds the status of the pledged property as of November 1, 2006 is KZT4,318,462,732.21. On the basis of above-stated the representative concludes that the status and volume of pledge subject satisfies the requirements, stated in the specification of KZ2CKY10A986 bonds issue. [2006-11-17]