OREANDA-NEWS. On 23 May 2008 was announced, that the Annual General Meeting of shareholders of the MICEX Stock Exchange approved the results of the Exchange’s activities in 2007 and adopted the Exchange’s financial statements for the year 2007. The meeting elected the Board and the Audit Commission of the MICEX Stock Exchange and re-appointed Alexei Rybnikov CEO of the Exchange for a further term to 2011.

The Board of the MICEX Stock Exchange, elected to serve until the next Annual General Meeting of shareholders in 2009, is comprised of 11 people:

Ruben Aganbegyan (Managing Director of Renaissance Capital — Financial Consultant);

Mikhail Belyaev (Senior Managing Director of Otkrytie Financial Company);

Yuri Denisov (Vice President and Head of Treasury of the Finance Department of VTB Bank);

Bella Zlatkis (Deputy Chairperson of the Board of Sberbank);

Sergey Lykov (Member of the Board and Vice-Chairman of Vnesheconombank);

Gennady Mayatsky (Vice President and Head of Treasury of Evrofinance Mosnarbank); Alexander Potemkin (President of the MICEX);

Alexei Rybnikov (CEO of the MICEX SE);

Vladimir Tacii (First Vice-President and Chief of the Depository Centre of Gazprombank);

Alexey Tsyganok (Director of the Office for Global Markets of Troika Dialog Investment Company);

Andrei Yumatov (Member of the Board of UniCredit Bank).

The newly-elected Board of the MICEX Stock Exchange re-elected Alexander Potemkin (MICEX) as Chairman of the Board and Bella Zlatkis (Sberbank) as Vice-Chairperson.

The Audit Commission of the MICEX Stock Exchange, elected until the next Annual General Meeting of shareholders in 2009, is comprised of 4 people:

Irina Glazkova (Head of the Internal Audit Service of the MICEX);

Alexey Polak (Deputy Head of Department of the Internal Control Division of VTB Bank);

Vyacheslav Ulupov (Director of the Internal Control Service of Vnesheconombank);

Yuri Yukin (Vice President and Head of the Internal Control Service of Evrofinance Mosnarbank).

The General Meeting of shareholders summed up the results of the MICEX Stock Exchange’s financial and economic activities in 2007, and adopted the MICEX Stock Exchange’s balance sheet, its income statement and its profit and loss statement. According to the financial statements, prepared under Russian standards, in 2007, the net profit of the MICEX Stock Exchange amounted to 69.142 million rubles. The General Meeting decided to pay dividends totalling 6.914 million rubles for 2007 fiscal year.

The General Meeting appointed Deloitte & Touche CIS Auditor of the MICEX Stock Exchange until the next Annual General Meeting.

The meeting considered the performance of the MICEX Stock Exchange during the reporting period. In 2007, the MICEX Group’s on-exchange market for corporate securities showed the largest volume of operations. The total volume of trades in non-government securities on the MICEX Stock Exchange increased 2.1 times and amounted to 43.5 trillion rubles (\\$1708.9 billion). Trades in stocks accounted for 30.9 trillion rubles (\\$1215.3 billion), trades in bonds accounted for 12.6 trillion rubles (\\$492.8 billion) and repos accounted for 24.4 trillion rubles (\\$962.2 billion). In 2007 the capitalization of the MICEX Stock Exchange’s share market grew by 28% to 29.97 trillion rubles (\\$1.2 trillion).

The most important events that took place in the on-exchange stock market in 2007 included the launch of the Sector for Innovation and Growth Companies on the MICEX Stock Exchange; a number of IPO’s of Russian companies; the expansion of the family of the MICEX stock market indices; the doubling of the number of individual investors – clients of participants in trading on the Exchange; the launch of trading in stock derivatives (futures on the MICEX Index); and the dramatic growth of the repo market, which is actively used to manage liquidity in the Russian banking system.

The number of organizations trading in the organized securities market increased. In 2007, 77 professional participants in the securities market began to participate in trading on the MICEX Stock Exchange. At the end of 2007, 636 organizations were trading on the Exchange, including 347 credit and 289 non-credit institutions that serve about 450 thousand investors.

Speaking at the meeting, Chairman of the Board of the MICEX Stock Exchange Alexander Potemkin said: "Despite the difficult situation in the world financial markets, the MICEX Stock Exchange managed to maintain high rates of growth of its client base, volumes of trading and financial performance. In 2007, the proportion of the MICEX Stock Exchange in the internal on-exchange market reached 98%, while in the Russian internal market (taking into account the OTC market) it exceeded 70%. The Exchange strengthened its position not only in the domestic market but also in the global market for securities of Russian companies: the proportion of trading in shares on the MICEX Stock Exchange in the total (global) on-exchange volume of trading in Russian assets (including GDRs and ADRs) reached 73%."

Outlining the Exchange’s goals, the CEO of the MICEX Stock Exchange Alexei Rybnikov said that the Exchange would seek to strengthen its leadership position in the global market for Russian stock assets and participate in the development of Russia's financial infrastructure. Alexei Rybnikov noted the following priority projects:

the expansion of the range of financial instruments (exchange bonds, Russian Depository Receipts (RDRs), shares of investment funds, securities of foreign issuers);

the development of the investment culture amongst Russian citizens;

the promotion of the Russian stock market for foreign investors;

interaction with the issuers (exchange-based IPO’s, the MICEX Discovery project, the IGC Sector, supporting the liquidity of the secondary market, etc.);

the development of the family of stock market indices and indicators;

the development of the markets for new derivatives on stock assets;

the development of the system of clearing and settlements, the creation of conditions for the waiver of 100% preliminary deposition of funds in trading on the MICEX Stock Exchange and effecting settlements on T + n.