NDC's Opinion Regarding Increase of the DCC's Charter Capital, as Stated During the DСС BOD Meeting

10 July 2007
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MOSCOW - The National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, today released a statement concerning a proposed charter capital increase by CJSC Depository Clearing Center (DCC). The issue was discussed at a July 6 DCC Board of Directors with NDC representatives on the DCC board participating. Ultimately, the matter was postponed to a further Board meeting scheduled for July 13, along with a proposal that the issue be placed before the annual general meeting of DCC shareholders.

During last week’s meeting, NDC representatives spoke of the need to eliminate disagreements regarding the capital increase. Previously, NDC, a DCC shareholder, had already included in the agenda for DCC’s AGM proposals regarding charter amendments which give additional powers to the Company's Board of Directors, giving it new authority over tariffs and the Company's budget. These proposals would correspond to the best corporate governance practices, raising the level of corporate governance at DCC and creating an additional mechanism for the protection of shareholders' interests.

Meanwhile, NDC, mindful of market needs, of development trends within the Russian financial market, of the need to increase competitiveness, and of requests by market participants, intends to take certain measures to improve the work of the NDC-DCC "bridge" in the near future. In particular, there are plans to increase the working hours of the "bridge" and to officially accept additional securities issues among those allowed via the "bridge." The necessary consultations with a number of companies – leading professional market participants – are currently being held at NDC. Currently NDC experiences a large inflow of securities over the "bridge" for exchange business purposes at the MICEX exchange. In the past six months, the positive balance of "bridge" operations reached a value of about RUR 150 billion. Thus, the development of the NDC-DCC "bridge" is creating additional positive conditions for exchange transactions and, first of all, to organizations which are DCC clients, and hence, for the development of DCC itself.

In NDC's opinion, in order to optimize the system of depository services for participants in the Russian stock market, it is necessary to switch from simply broadening the NDC-DCC "bridge" to a full consolidation of the NDC’s and DCC’s business. Therefore it is reasonable to hold consultations between DCC shareholders and NDC partners regarding consolidation and the future configuration of the settlement-depository infrastructure being created on the basis of NDC and DCC.

About NDC

Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond market of the Bank of Russia, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. In 2006 the value of assets in storage was RUR 3.3 billion, turnover was RUR 30.7 billion, and the total number of operations 1.9 million. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using a direct account at Clearstream Banking S.A. Among NDC’s founders are Bank of Russia and MICEX CJSC. Members include Bank of Russia, MICEX CJSC, OJSC Bank of Moscow, Sberbank, International Moscow Bank, JP Morgan Bank International LLC, Vneshtorgbank OJSC, Bank Rossiysky Credit OJSC, Evrofinans Mosnarbank OJSC, Rosbank, Gazprombank CJSC, ING Bank Eurasia CJSC and Deutsche Bank LLC. Recently Vneshekonombank was approved as a new member. The Partnership also has a stake in CJSC Depositary Clearing Company (36.96 %) and in CJSC Settlement Depository Company (29%).


Further information about NDC: www.ndc.ru, or NDC press service: +7 495 232 0910,

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