KAZAKHSTAN STOCK EXCHANGE INC Tallinn 2007 May 13

KAZAKHSTAN STOCK EXCHANGE INC. Tallinn 2007, May 13– 14

YOUNG AND SINGLE KASE was established at November 17, 1993 under the name of Kazakh Interbank Currency Exchange, two days after the launching of tenge – new legal tender of Kazakhstan. KASE – non-commercial joint-stock company with the 59 shareholders – National Bank of Kazakhstan (the largest shareholder), banks, brokerage firms, asset management companies, pension funds and other professional financial institutions. All of them have only one vote each.

UNIVERSAL EXCHANGE KASE serves the markets of: ü foreign currencies ü money market ü equities ü corporate bonds ü government securities ü derivative instruments ü promissory notes …

OUR MEMBERS KASE has 86 members: ü banks ü brokerage firms ü asset management companies 29 49 8

TRADING FLOORS (LISTING CATEGORIES) TRADING FLOOR FOR LISTING COMPANIES Category "A" Category "B" Non listing securities sector SPECIAL TRADING FLOOR OF RFCA Official list of special trading floor Non listing securities of the Financial Centre

IMPRESSIVE DYNAMICS OF TRADE VOLUME

UNIVERSAL EXCHANGE (3 months 2007) In total, repo (money) market takes 69. 2% of general KASE turnover

DOMINATION OF REPO AND FOREX MARKETS KASE repo market is specially designed for domestic purposes – to satisfy the needs of local pension funds and banks in short-term money borrowings and lendings. KASE foreign currencies market – the basic trading site for the National Bank of Kazakhstan to regulate the exchange rate of tenge. KZT/USD: the KASE exchange rate today = official exchange rate tomorrow.

CORPORATE SECURITIES MARKET Total KASE turnover for 3 months 2007 with the equities – 793, 5 mln USD, with the corporate bonds – 1 098, 7 mln USD

MARKET CAPITALIZATION (bn USD)

UNEXAMPLED GROWTH (in 2005– 2007) Index KASE_Shares demonstrated the rapid growth: 11. 1 times (for the period Jan. 05, 2005 – Apr. 19, 2006) due to the appearance of new investors’ class – mutual funds and individuals, and 8. 6% (for the period Jan. 03, 2007 – May. 03, 2007).

GROWING ACTIVITY OF INDIVIDUALS (equity market)

GROWING ACTIVITY OF INDIVIDUALS (corporate bonds market)

LISTED COMPANIES Listed companies Securities

LISTED COMPANIES (by structure)

LISTED SECURITIES (by categories)

SPECIAL TRADING FLOOR OF RFCA Number of Issuers – 14 Number of securities issues – 56 Shares – 15 Bonds – 41 All of them are listed at KASE Total trade volume of stocks and bonds transactions – 40. 3 mln USD Shares – 39. 9 mln USD (sale of state block of Kazakhtelecom's shares among pension funds),

FOREIGN SECURITIES Different ways foreign companies which want to make borrowing in Kazakhstan on the exchange market: ü shares placement, IPO (securities need to be listed on KASE or on special trading floor of RFCA) ü bonds issue, which is registered in accordance with legislation of a foreign state (securities need to be listed on KASE or on special trading floor of RFCA) ü bond issue, which is registered in accordance with legislation

RULES AND REQUIREMENTS All listing requirements are established by the following documents: üspecial normative act the Resolution of the FSA Board № 63 "About Requirements for Issuers and Their Securities admitted in circulation on the Stock Exchange and for Specific Categories of the Stock Exchange Listing" üInternal document of KASE "Listing rules of KASE" üInternal document of KASE "Listings Requirements of Foreign

LISTING REQUIREMENTS TO FOREIGN ISSUERS AND THEIR SECURITIES: Requirements CATEGORY "A" Existence term Not less than 3 years Financial statements in compliance with Equity Net profit Audit Ratings (shares, bonds) no lower than Presence of market- CATEGORY "B" IAS/IFRS or GAAP 100 mln USD 10 mln USD for 3 last years for 1 last year Delloitte, Ernst&Young, KPMG, Waterhouse Coopers S&P, Fitch BBBMoody’s Baa 3 B B 2 Required

LISTING REQUIREMENTS TO FOREIGN ISSUERS AND THEIR SECURITIES (2): It is necessary to have rating of the issuer and (or) its securities excluding shares, which are listed on the main floor (under the highest listing category) of one of the following stock exchanges: NASDAQ, NYSE, Deutche Boerse, Euronext, London SE, Tokyo SE, BME Spanish Exchange, Borsa Italiana, SWX Swiss Exchange, Taiwan SE.

LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA 1 st condition Listing on one of the stock exchanges which are included into the list approved by Authority body of RFCA, Toronto SE, Tokyo SE, BME Spanish Exchange, Borsa Italiana, SWX Swiss Exchange, Taiwan SE, Hong Kong SE, Singapore SE, Shanghai SE, Moscow Interbank Currency Exchange, The First Stock trading system’ association and KASE.

LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA (2) 2 nd condition The minimum rating of the issuer and (or) its securities must be not less than ‘BB-’ (according to the classification of the rating agencies ‘Standard & Poor's’ or ‘Fitch’) or ‘Ba 3’ (according to the classification of the rating agency ‘Moody's Investors Service’).

LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA (3) Requirements Existence term Financial statements in compliance with Equity Audit Presence of market-maker 3 rd condition Not less than 1 year IAS/IFRS or GAAP not less than share capital & 200. 000 USD auditing organisations which meet with qualification requirements for organisations of auditors for the admission of financial instruments to the special trading floor of the Financial Centreas approved by the Agency required

ADVANCED TECHNOLOGIES KASE uses it’s own trading platform: ü on-screen based electronic "Server – Client" system ü remote access ü electronic signature and electronic documents circulation ü traffic encryption ü on-line data saving Central Depository is the KASE subsidiary: ü DVP

STEP UP TO FUTURE DEVELOPMENT KEY FEATURES ü Growth of daily equity trade figures ü Rising market share of individuals ü First results on IPO

IN THE FUTURE ü Waiting for the IPO of the largest Kazakhstan banks and producers (according to the Securities Law, at least 20% of the local shares being placed must be suggested at the domestic market for purchase) ü Welcoming the new listing companies ü Waiting for the IFOs to place their bonds in Kazakhstan ü Improving settlements procedure, establishing Guarantee Fund

CONTACT US Internet: www. kase. kz e-mail: kase@kase. kz phone: (+7 327) 272 98 98, 272 06 00 fax: (+7 327) 272 09 25 address: 67, Aiteke bi street, Almaty, 050000, Kazakhstan