Kazakhstan Government selects Kazkommertsbank as a strategic partner in implementation of measures on support of real economy sector

/KASE, October 31, 08/ - Kazkommertsbank (Almaty) a listing company of Kazakhstan Stock Exchange (KASE) provided KASE with the press release of October 30, 2008: Quotation start Kazkommertsbank was selected by the Kazakhstan Government as a strategic partner for implementation of measures on support of real economy sector. It is supposed that Kakommertsbank may raise up to $300 m. through sales of new emission common and preferred stock to the government. The government stake will be limited to 25 %. Direct shareholding shows intentions of the government to render bank support as required, which must improve trust of depositors, corporate clients and investors. "We do not need to increase our capital as for the time being. We comply with the norms of the National Bank and the Agency for Financial Supervision (AFS). Now we are talking about the participation of Kazkommertsbank in the program for support of national economy and this is a very important point for us since we are a Kazakhstan financial institution", - Nina Zhusupova Chairman of the Board of the Bank said. According to statements prepared in compliance with IFRS, the volume of provisions arranged by the bank as for July 1, 2008 made up KZT178 bn., or 7.2 % of entire credit portfolio. According to AFS norms the coefficient of sufficiency of first level capital as on October 1 equaled 10.6 %, the coefficient of sufficiency of own bank capital - 13.0 % with minimum 5 % and 10 % requirements. "We believe the decision of the government is quite reasonable - attracting funds to economy not only via government development institutions, but through commercial banks. This will allow for refilling credit funds at domestic market and making more available financing of companies and population in the circumstances of the global financial crisis",- Ms Zhusupova added. This initiative of the government is a continuation of the measures to strengthen Kazakhstan banking system implemented earlier, including increase of deposit guarantee volume from KZT700 th. to KZT5 m., which is in accordance with AFS calculations covering 99 % of all retail deposits of the state. Shares will be offered in full accordance with the Law On Joint Stock Companies and requires decisions of the Board of Directors of the bank and the general meeting of shareholders. The bank will comply with all procedures specified by KASE and LSE listing rules. Thus, the state is intending for an unlimited term to become a strategic shareholder of the bank complying with all legal requirements and rights of other shareholders. It is supposed that as the situation on the global market improves the stake will be sold at market terms. Number of shares in a new emission, government representative participations in the Board of Directors and other details of the deal will be discussed with the government during the future talks. Terms of acquisition of stakes in the capital of the bank will be determined by standard procedures including the procedure of the general meeting of shareholders and new shares issue Contact: Aliya Nursultanova, Investor Relations Department, Tel: +7 (727) 2 585 125 Email: investor_relations@kkb.kz Larissa Kokovinets, Public Relations Department Tel: +7 (727) 258 54 56 Email: pr@kkb.kz Quotation end [2008-10-31]