ASIA AVTO (Kazakhstan), OAO ABTOVAZ (Russia) and Eurasian Development Bank sign cooperation agreement

/KASE, September 23, 08/ - ASIA AVTO (Ust-Kamenogorsk), OAO AVTOVAZ (Russia) and Eurasian Development Bank provided Kazakhstan Stock Exchange (KASE) with the joint press release: Quotation start AVTOVAZ, ASIA AVTO and Eurasian Development Bank signed a cooperation agreement. AVTOVAZ, ASIA AVTO and Eurasian Development Bank signed a cooperation agreement September 22, 2008 in Aktobe (Kazakhstan). The document was signed by AVTOVAZ President Boris Aleshin, Chairman of the Board of Directors of ASIA AVTO Anatoliy Balushkin and Chairman of the Board of Eurasian Development Bank Igor Finogenov. The Agreement specifies long-term partnership for purposes of organization of assembly and sale of LADA automobiles. The parties agreed that AVTOVAZ will acquire in accordance with the decisions of authorized bodies of AVTOVAZ, and current legislation of the Russian Federation and Republic of Kazakhstan a 25 % +1 block of shares of ASIA AVTO at the expense of an additional emission. The term of the agreement is ten years. AVTOVAZ during the term of the agreement will grant ASIA AVTO an exclusive right for assembly and 120,000 LADAs a year and sale of production in Kazakhstan. Automobiles will be distributed to RF regions and other countries in accordance with separate agreements concluded with AVTOVAZ. Technical servicing, warranty and post-warranty repairs of the Kazakhstan produced LADA automobiles will be within the responsibility of ASIA AVTO. The agreement specifies production of LADA automobiles in the full assembly cycle conditions, including blanking, welding and coloring. Automobiles will be assembled using auto sets and components delivered by AVTOAZ and other manufacturers, approved by AVTOVAZ. For purposes of provision of assembly needs the parties agreed on development of parts production in the 200 km. radius from the place of assembly. Eurasian Development Bank, in accordance with the Agreement, is intending to organize financing of assembly investment needs, and financing of parts production development. The financial advisor of AVTOVAZ is Investment Company Troika Dialog. Kazakhstan is one of the AVTOVAZ largest export markets. In 2007 14,690 LADA automobiles were shipped to Kazakhstan which is 26 % higher than in 2006. AVTOVAZ delivers all makes of LADA to Kazakhstan. There are over 820,000 LADAs in Kazakhstan - which is almost half of all automobiles. There are 20 dealers in Kazakhstan. AVTOVAZ - a Russian auto maker and one of the largest car makers in East Europe. In 2007 AVTOVAZ produced 735,897 cars. Net profit of the company in 2007 made up RUB3,951 m., which is exceeding that of 2006 by RUB1,439 m. or 57.3 %. ASIA AVTO - an auto maker, located in the capital of the Eastern Kazakhstan - the city of Ust- Kamenogorsk. Since 2003 the plant produces LADA 4x4 assembling the parts shipped by AVTOVAZ. Approximately 10,000 all-road cars have been produced. Currently the plant, apart from LADA 4x4, is assembling LADA SAMARA 21099. In 2007 ASIA AVTO made about 3,000 LADAs. Eurasian Development Bank - an international organization, founded and operating in accordance with the Agreement on Establishment of Eurasian Development Bank of January 12, 2006 between the Russian Federation and Republic of Kazakhstan. The bank facilitates development of market economy of the states - bank members, their economic growth and enlargement of trade and economical relations by means of investment activity. Press Service of OAO AVTOVAZ Phone: 8- 8482-737171 ASIA AVTO contact person: President Assistant Diana Muhamadieva Tel.: 8-7232-522620, 8-7232-522611 e-mail zavod@aziaavto.kz Eurasian Development Bank contact person: Public Relations Director Elena Ganshina Tel.: 8-727-244-68-81, 8-701-768-19-57 Quotation end [2008-09-23]