DinaCard SYSTEM Two Years Later September, 2005 National Bank of Serbia

2 Summary To include all banks in the DinaCard system Оf 38 operating banks 37 banks have signed the agreement, 1 bank is in the joining stage To develop an acceptance network in a short time period 34 banks accept DinaCard at 22,500 points of sale and close to 600 ATMs To issue the largest possible number of DinaCard cards 34 banks have so far issued 1.6 million DinaCard cards To provide a substitute for the deferred payment cheque In all, over 3 million cards issued in Serbia PRINCIPLE OBJECTIVES IN THE FIRST TWO YEARS OF OPERATION (THE SYSTEM WAS LAUNCHED ON OCTOBER 8, 2003)

National Bank of Serbia 3 OBJECTIVE I – to include all banks in the DinaCard system 37 banks of 38 operating entities have signed agreements The only bank that has remained outside the system is in the phase of negotiations and is expected to join the system by end-October The development of the system is modeled on large European national systems such as CarteBleue in France or Europay Austria

National Bank of Serbia 4 OBJECTIVE II – to develop an acceptance network in a short time period The largest national acceptance network, approaching European standards in scale 22,500 points of sale at which payment can be made by using a card (5,000 at end-2003). Croatia: 35,000 (30,000 at end-2003) Bulgaria: 10,000 points of sale Close to 600 DinaCard ATMs (around 150 ATMs at end-2003) Plans for further network development (payment by mobile phone, the Internet)

National Bank of Serbia 5 OBJECTIVE III – to issue the largest possible number of cards Over 1.6 million DinaCard cards issued All clients of the Postal Savings Bank hold DinaCard cards, to be used for payment and cash withdrawal at all ATMs with the DinaCard acceptance mark Plan: end-2005 – over 2 million DinaCard cards In all, over 3 million cards have been issued nationally (DinaCard 1.6 million, VISA 1.2 million, MasterCard 300 thousand, others 300 thousand)

National Bank of Serbia 6 Number and Structure of Monthly Transactions in the DinaCard System The number of transactions with all cards (DinaCard, VISA, MasterCard, YUBA, Diners) will exceed 30 million (4 transactions per capita) in 2005, which is a more than tenfold increase over the past 2 years

National Bank of Serbia 7 Monthly Turnover in the DinaCard System

National Bank of Serbia 8 OBJECTIVE IV – to provide a substitute for the deferred payment cheque Over 20 banks issue DinaCard 3,6,12 credit cards Banks have stepped up the issuing of VISA and MasterCard credit cards as well DinaCard credit card is available to a wide population, with affordable interest ranging from 1 to 1.8% monthly

National Bank of Serbia 9 Share of Credit Card Turnover in the DinaCard System August 2005: DinaCard 3,6,12 account for 19% of turnover (monthly growth of over 100%)

National Bank of Serbia 10 Plans To additionally accelerate the issuing of DinaCard credit cards as cheque substitutes To expand the acceptance network to include kiosks, taxi services, and enable payment via mobile phone and the Internet Co-branding negotiations with international systems

National Bank of Serbia 11 Useful Information