Equity financing alternatives for Russian companies on the London Stock Exchange October 20, 2006

October Company growth Growth Independent Market Expertise Recommendations on how to maximise the value of joining a London market The LSE supports customers in maximising shareholder value through supporting capital raising and generating liquidity whilst maximising opportunities from their increased profile Capital Raising it efficiently & effectively when required Profile Maximising marketing/PR opportunities Liquidity Increasing and maintaining liquidity

October Volume of Assets Managed in Financial Centres, 2005 Fund management activities in the UK are concentrated in a single location (London) rather than geographically spread of different centres Source: Big Dough, Hemscott (September 2005)

October Oxera’s new analysis confirms that the findings of the 2003 Torstila study continue to apply now. The Oxera analysis is based on a sample of all IPOs on the LSE, NYSE, Nasdaq, Euronext and Deutsche Boerse during the period from January 1st 2003 to June 30th 2005, for which underwriting fee data was available in Bloomberg. Source: The Cost of Capital - An International Comparison, June 2006 The gross spreads of IPOs on the US exchanges are found to be the highest, averaging 6.5% for the NYSE sample and 7% for Nasdaq IPOs. In comparison, median spreads of IPOs on the LSE’s Main Market are 3.25% and those on AIM somewhat higher at 4%. Cost of Capital in London: Oxera Research

October London continues to attract int’l companies Source: London Stock Exchange, August 2006

October In 2005, 17 Int’l Companies raised approximately $8 billion in London International IPOs in London, 2005 Source: London Stock Exchange, August 2006

October In the first eight months of 2006, 10 Int’l companies have raised over $12 billion in London International IPOs in London, 2006 YTD Source: London Stock Exchange, August 2006

October Top 10 companies traded on IOB – Jan-Jul’06 Source: London Stock Exchange trade statistics

October Main Market (London listed, DR issuer) London listing (regulated) IOB Professional Securities Market (exchange regulated) IOB (U) Source: London Stock Exchange - July 2006 Case Study: London – a leader in international trading In 2005, IOB total trading turnover was $131bln and in the 7 MNTHS 2006 of $172bln.

October Rosneft ownership structure Pre-IPO Post-IPO Russian government via Rosneftegaz 100% Other free float 13% Rosneftegaz 75% Consolidation minorities 12% Strategic 21% Russia instl 39% Retail 4% Intl institutional 36% Demand split Shares Sold: Ordinary Shares (~41%) & GDRs (~59%) Offer Size: $10.4 Billion (pre-Green Shoe) and $10.6 billion Post IPO Market Cap: $80.2 Billion Rosneft: 30/70 in Action Source: JP Morgan

October Key differences between our markets  Pre-vetting of admission documents by the UKLA  Compliance required with the rules of the UKLA  Normally a three-year trading record required  Minimum of 25% shares in public hands  Prior shareholders approval for certain transactions  Sponsors needed for certain transactions  Regulation by the LSE  No trading record required  No minimum amount of shares to be in public hands  In most cases, no prior shareholder approval required for transactions  Normally, admission documents not pre-vetted by Exchange or UKLA but by nominated adviser  Nominated adviser required at all times Main Market

AIM for Russia – A Record Year for Capital Raised* Source: London Stock Exchange, September 2006, *Includes further capital raises

AIM for Russia – 199 IPOs have raised close to $11 Billion Source: London Stock Exchange, September 2006

AIM for Russia – Top 10 Sectors By IPO Capital Raised Source: London Stock Exchange, September 2006

AIM for Russia 15 Russian Assets on AIM – A Sizeable Peer Group Source: London Stock Exchange, August 2006

AIM for Russia 16 Access to Capital - both at IPO and after Source: London Stock Exchange, August 2006

AIM for Russia 17 AIM Supports Growth Companies 11 Months 13 Months 14 Months Source: London Stock Exchange Statistics, September 25, 2006

AIM for Russia 18 Prospectus Preparation Underwriting and analytical coverage Broker NOMAD Company Short-form report Technology Experts Reporting Accountants Legal reports and negotiations Law Firm (NOMAD’s) Law Firm (Corporate) Public Relations and Investor Relations Listing and trading Services Stock Exchange: AIM Registrar PR firms Independent Researchers LHC 3-5% of the deal, plus 1% of the firm £150K-£300K, Of whichNOMAD’s Lawyers get 25%-40% £100K-£150K £25K-£50K £10K IPO Process Cost Structure (AIM) £150K-£200K plus 1% of the firm Total costs to raise £50m, Excluding value of options: £2,500K-£5,000K Overall costs range: 5%-10% CREST Co Source: Oxford Said Business School MBA Project, August 2006 as amended by London Stock Exchange

October Jon Edwards Senior Manager, CIS Desk +44(20) Contact Details