OREANDA-NEWS. January 14, 2010. Pursuant to Resolution No. 268 adopted on 30 December 2009 by the Agency of the Republic of Kazakhstan on Regulation and Supervision of the Financial Market and Financial Organizations (the “FMSA”), the entire issued share capital of JSC Alliance Bank (the “Bank”) has been compulsorily acquired by the FMSA and transferred to JSC National Welfare Fund Samruk-Kazyna (“Samruk-Kazyna”), reported the press-centre of Alliance Bank.

The FMSA undertook this action pursuant to the Law of the Republic of Kazakhstan on Banks and Banking Activity (the “Banking Law”) primarily as a result of the Bank’s negative equity capital position and its failure to comply with prudential requirements, which were not cured within the time period allowed under Kazakhstan legislation.

Pursuant to the Bank’s restructuring plan Samruk-Kazyna will recapitalise the Bank by subscribing for newly issued common shares for KZT 24 billion and converting KZT 105 billion of bonds into additional preference shares.

The acquisition of the Bank’s share capital by Samruk-Kazyna will ensure that the Bank’s licence for accepting retail deposits and opening and maintaining retail accounts will not be revoked under Article 30 of the Banking Law. In accordance with Article 30, starting from 1 January 2010, Kazakhstan banks (excluding banks with more than 50 per cent of shares held by the state) that do not have a large shareholder with a certain minimum credit rating cannot hold a licence for accepting retail deposits and opening and maintaining retail accounts.

As a consequence of the measures carried out by the FMSA in accordance with the Banking Law, all interests in the share capital of the Bank held by former shareholders (including the holders of GDRs representing an interest in the Bank’s shares) have been extinguished and no compensation will be paid in respect thereof. An application has been made to cancel the listing of the GDRs on the Main Market of the London Stock Exchange, such cancellation to take effect on 11 February 2010.

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America. The materials do not constitute an offer of securities for sale in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder. There is no intention to register any portion of the offering in the United States of America or to conduct a public offering of securities in the United States of America.

The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.