1. Going Public in Russian Securities Market Alexei Rybnikov CEO MICEX Stock Exchange

2. 2 IPO for Russian Issuers: Pros and Cons Benefits of going public – Ability to raise capital rapidly when needed » acquisition currency » liquid market for the company ’ s stock » expanding shareholder base – Strengthening balance sheet to support future growth – Increases valuation (reduces illiquidity premium) The dark side of IPO – Losing full control of the process – market dictates final outcome – Underpricing - market price may not reflect true value of the firm – Focus shift – from long-term to short-term goals

3. 3 Choice of Venue: Issuer Perspective Factors to consider:  Deal size  Target investor base  Critical mass of liquidity  Legislation  Cost  Story

4. 4 Choice of Venue: Issuer Perspective Factors to consider:  Deal size – up to US$ 500 million  Target investor base - mix of buy-and-hold and active traders  Critical mass of liquidity – at all times  Cost – at issuance and maintenance  Story – compelling

5. 5 A CRITICAL NEED Domestic Market

6. 6 MICEX Group: the national financial infrastructure St.-Petersburg Moscow N. Novgorod Novosibirsk Rostov-on-Don Yekaterinburg Vladivostok Samara

7. 7 Domestic Market in Figures  MICEX Stock Exchange’s share in Russian stock market turnover exceeds 85%  Turnover in 2005 reached US$ 225,6 bln, 49,2% increase over 2004  Volume of transactions in Jan-Feb 2006 - US$ 69,6 bln, 3,4 times over Jan-Feb 2005 Turnover of Russian stock exchanges in 2003-2006, US$ bln 200320042005 Jan- Feb 2006 MICEX99.1151.2225.669.6 RTS13.326.136.515.8

8. 8 MICEX Stock Exchange: Stock Market Up-and-Coming

9. 9 MICEX Stock Exchange: Liquidity Growth

10. 10 MICEX Stock Exchange: Start in Gazprom  MICEX SE trading volume is over 41% of the total market

11. 11 Issuers on MICEX Stock Exchange January 1, 2003 January 1, 2004 January 1, 2005 January 1, 2006 March 1, 2006 Total number of issuers 157225241418461 Issuers of equities 859181161185 Issuers of bonds 82152179244262

12. 12 MICEX Stock Exchange: Investor Base Type of InvestorNumber of Investors (16.03.2006) Private Investors130 301 Nonresidents1 203 Legal Entities20 208 Institutional Investors4 752 Total156 464

13. 13 MICEX Stock Exchange: Cash Equities  294 securities of 185 issuers traded  50 equities of 34 issuers listed, including all blue chips  2005 equities trading volume reached US$ 141,8 bln, 30,6% increase over 2004  Volume of transactions with equities in Jan-Feb 2006 - US$ 49,6 bln, 4 times over Jan-Feb 2005

14. 14 MICEX Stock Exchange: Corporate and Regional Bonds  375 bonds of 262 issuers traded  US$ 24,2 bln (par value) total outstanding  114 bonds of 67 issuers listed  2005 turnover in bonds reached US$ 83,8 bln, 2 times over 2004  Volume of transactions with corporate and regional bonds in Jan-Feb 2006 - US$ 20 bln, 2,4 times over Jan-Feb 2005

15. 15 Corporate Bond Market: Proxy for IPOs  Market value of corporate bonds has grown 6,2 times during 2003- 2005  Market value of corporate bonds in Jan-Feb 2006 has increased by 28,1% to 12,3 bln USD  The biggest issuers of bonds (in terms of nominal value):  RZhD – 1.17 bln USD  Gazprom – 0.89 bln USD  Vneshtorgbank – 0.71 bln USD

16. 16 MICEX Stock Exchange Among Peers Volume of trades on equities market in January 2006 and number of issuers US$ blnNumber of issuers NYSE1387.61817 NASDAQ1107.22821 London SE603.42753 Tokyo SE568.72325 Euronext282.8962 Deutsche Borse221.4645 Hong Kong Ex&Cl60.01127 Shanghai SE27.8833 MICEX SE19.7170 Singapore Ex12.2566 Wiener Borse5.95.991 Warsaw SE4.94.9234

17. 17 Russian Legislation & Regulation: Recent Developments (2005-2006)  More issuer & investor friendly  Shorter IPO cycle  30% rule  RDR  Transparency  Corporate Governance  Investor Protection  National Infrastructure

18. 18 Future Prospects nMarket is Ready nInfrastructure in Place nRegulation Inviting nNext Steps:  Dual Listings  Strategic Cooperation & Partnerships  Real Working Mechanisms

19. 19 Contacts nAddress: 13, B. Kislovskiy per., Moscow, 125009, Russia nTelephone: (+7 095) 234-4811 nFax: (+7 095) 705-9622 nE-mail: info@micex.com nWeb-server: www.micex.com