2. SECURITIES ACCOUNTING SYSTEM P R E S E N T A T I O N M O S C O W O C T O B E R 2 0 0 5 PECULIARITIES I N GEORGIA

3. Georgian Securities Market Infrastructure GEORGIAN STOCK EXCHANGE Central Depository Settlement Banks Securities Registrars Brokerage Company GEORGIAN OVER-the- COUNTER MARKET

4. Securities Registrars S E C U R I T I E S D E P O S I T I O N Brokerage Companies Central Depository Clients

5. Securities Central Depository Brokerage Companies Commercial Banks Securities Registrars WHO REALIZE DEPOSITORY FUNCTIONS IN GEORGOAN SECURITIES Market

6. Levels of Nominee Holdership Beneficiary- owners of securities Transfer to first- level NH Brokerage Companies Central Securities Depository Commercial Banks Transfer to second-level NH

7. Nominee Holdership

8. Types of Nominee Holding Provide information to customers; Receives dividends; Sells/Purchased securities; Manages securities; Keeps securities; Combinations of all the above.

9. TRADES & ISSUERS There are precious few quality public companies at present… Market Parametrs 200220032004 Georgian Stock Exchange Trade sessions104103102 Turnover, mln. Lari8,51,647 Turnover, mln. Shares11831 Over-the-counter market Turnover, mln. Shares185675

10. TREASURIES PRIMARY MARKET 25,39 54,00 81,70 198,77 << 44,62 Max 17,64 35,79 23,05 23,75 << 27,02 Min 21,33 139 299 800 139 300 0002004 42,94 226 978 700 227 900 0002003 42,94 250 223 000 259 300 0002002 67,32 68 079 800 81 950 0002001 << 39 221 300 40 000 0002000 << 3 948 000 4 800 0001999 << 47 438 400 82 166 6001998 35,64 13 917 000 20 656 8001997 Middle YEAR FLOATING VALUE ANNUAL RATE of RETURN EMISSION VALUE

11. Some Parameters of GCSD in 2004 2635 4848 Deposited Securities (#), Total 1 373 388 816 Deposited Cash (GEL), Total 72 304 492 Settled Trades 1094 Number of open brokers’ client accounts (BC) before the year end Number of direct accounts (DI) before the year end

12. 5.59710 000 00010 000 000,00 Georgian Bank GEB 0.10010 000 00010 000 000,00 People’s Bank AMB 0.2001 812 96710 350 000,00 Sarajishvili &Eniseli ENIS -5 200 00010 400 000,00 Gergeti GRG 0.70021 000 00021 000 000,00 United Georgian Bank UGB 1.92012 000 00021 840 000,00 Poti shipyard POGR 0.00126 327 13026 327 130,00 Kutaisi autofactory KAVT -29 700 16829 700 168,00FERO 1.00081 147 88681 147 886,00AEST 1.000111 000 000202 020 000,00 Zestafoni Ferrous CHMN Last price in 2004 Outstandi ng Shares Authorized capital stock JSK name GSE code ChiaturManganumi AES Telasi TOP 10 GEORGIAN JSK (by CAPITAL)

13. THANK YOU ANY QUESTIONS?

14. Contact Information GEORGIA, 0126, TBILISI, Chavchavadze ave. 74a TELEFONS: (995 32) 22-07-18; (995 32) 22-07-49 FAX: (995 32) 25-18 -76WEBSITE: www.gcsd.ge DIRECTOR – SANADZE GAIOZ Georgian Central Securities Depository