OREANDA-NEWS. January 24, 2011. In accord with Alliance Bank (the Bank) charter, dividends on the Bank's preferred stock are to be paid within the first 10 (ten) working days after the end of a financial year, based on KZT2,680 (two thousand six hundred and eighty) per share ratio. The total number of preferred shares issued and outstanding makes up 2,619,626 units, reported the press-centre of KASE.

At the same time, article 22 of the Law of the Republic of Kazakhstan "On Joint-Stock Companies" of May 13, 1993 does not allow calculation and, accordingly, pay-out of dividends under a negative own equity or if the company's own equity becomes negative after calculation of dividends on its shares.

Also, a letter from FSA # 04-01-14/1689/24523 of December 20, 2010 says that calculation and pay-out of dividends is not allowed in case the Bank's own equity when measured under IFRS is negative as of December 31, 2010.

According to article 36 of the Law of the Republic of Kazakhstan "On Joint-Stock Companies" of May 13, 1993 a decision not to pay dividends on preferred stock in cases stipulated by the legislation, can be taken only by a general meeting of the company's shareholders. So, the pay-out of dividends due for 2010 will be considered by a general meeting of the Bank's shareholders whose results will be communicated additionally.

We also inform you that the Bank is currently carrying out appropriate measures to tackle the Bank's negative own equity in line with IFRS.