EUROBONDS OF KAZKOMMERTS INTERNATIONAL B.V. HAVE BEEN REMOVED FROM KASE LIST BY EMITTER'S INITIATIVE

/IRBIS, Sep.29, 99/ - By the decision of the KASE exchange's board dated September 28, 1999 eurobonds of KAZKOMMERTS INTERNATIONAL B.V. (official list of securities of category "A", XS0081674359, trade code KKGBe1) have been removed from the trade list of the Exchange. Regarding this news the management of KAZKOMMERTSBANK informs that delisting of Euronotes was carried out voluntarily based on the emitter's application. "Decision about delisting eurobonds on Kazakhstan stock exchange is due to the problems of regulating the order of buying securities issued by non- resident company by the residents of Kazakhstan, their further circulation and taxation in Kazakhstan. These problems do not allow the market for eurobonds of non-residents to grow in Kazakhstan" is said in the message. KAZKOMMERTSBANK also informed that from September 6 of current year circulation has started for the bonds of the bank issued according to the legislation of Kazakhstan and available to both residents and non-residents of the republic and circulating on domestic market without restrictions. These securities (КZ72КА7B9A11, trade code KKGBb) are included into KASE official list of securities in category "A" on August 31, 1999 and are indexed to USD/KZT exchange rate fluctuations by two year bonds whose coupon rate is 10.0% APR in currency terms. On September 29 KKGBb is quoted on KASE with the spread of 13,579.85 (demand) / 13,720.37 (offer) tenge a piece, which is equal to (based on the method adopted at IRBIS) the yield of 11.99 / 11.38 % APR taking into account the weighted average exchange's rate of USD/KZT. KAZKOMMERTS INTERNATIONAL B.V. (Rotterdam, the Netherlands) is the company created by KAZKOMMERTSBANK to attract a capital on international money markets. Eurobonds of the company were entered into KASE official list of securities on February 2, 1999 in category "A" and were available for trade on the exchange since February 03. The first transaction was made on March 09. Since then, judge by volume of operations, the Eurobonds were the most popular tool on KASE from all Non-state Securities (NSS) because of its biggest yield. For all time 16 transactions on the sum of $6.83 million (nominal) were conducted, that correspond to 643.8 million tenges when discounted. The annual yield of the buyer varied from 26.91 to 39.98% in a hard currency (Eurobonds are US dollars denominated). The Eurobonds were acquired by pension assets management company (PAMC) and in the interbank market. According to KASE data, in the current year on them 4 interbank operations including of pension assets totaling $3.3 million of nominal volume were made. Due to high yield and real US dollars denomination (all types of the investors are served in dollars), Eurobonds KAZKOMMERTS INTERNATIONAL B.V. were very popular among republican pension funds. KAZKOMMERTS INTERNATIONAL B.V. addressed on KASE with the application to except since September 01, 1999, the Eurobonds from the trade lists. As the operations with Eurobonds were conducted mainly by the Accumulative Pension Fund (APF), the essential part of securities is located in their portfolios. Delisting KKGBe1 deprived APF of an opportunity to acquire Eurobonds, because APF are allowed to deal only with Non-state Securities listed under KASE's "A" category. APF had even an impression, that after a Eurobonds delisting they will be compelled to sell these securities urgently. Above-stated was the reason of such a long discussions about KKGBe1 delisting. Representative of the emitter was compelled to consul with the professional market participants, KASE, National Securities Commission (NSC), National Pension Agency etc. In the special information message of KAZKOMMERTSBANK, devoted to an explanation of the delisting reasons, are spoken: "Opinion of some market participants of impossibility of APF to keep Eurobonds in their portfolios and about Eurobonds obligatory realization is premature. According to the oral consultations with the NSC chiefs, delisting of Eurobonds will not mean obligatory realization of Eurobonds by APF. By keeping Eurobonds APF certainly will receive the expected incomes". September 21 NSC has informed in the special letter with the reference to the existing legislation, that in case of exception KKGBe1 from the KASE official list of securities, the Pension Assets Management Company (PAMC): do not obliged to sell the given Eurobonds from the APF portfolios; Have no right to purchase and to sell the given Eurobonds in the organized market of Kazakhstan (de facto - on KASE); Have the right to purchase and to sell the Eurobonds in the international organized markets with obligatory registration of the given transactions on KASE.