RUSSIAN VTB BANK INTENDS TO IMPLEMENT INVESTMENT PROJECTS IN ARMENIA FOR TOTAL OF $500,000

ARKA News Agency, Armenia
June 14 2007

YEREVAN, June 14. /ARKA/. The Russian VTB Bank intends to implement
investment projects in Armenia for total of $500,000, the President
of Bank VTB OJSC Andrey Kostin said at the opening of the new branch
of Bank VTB (Armenia).

The Bank is quite interested in carrying out investment activities
in Armenia, Kostin said.

"Today we elaborate investment projects in the spheres of energy,
transport, air transport service, gas sector, as well as in mining
operations," he said. Kostin added these are real plans that are
discussed at high level and will be implemented shortly.

Bank VTB (Armenia) CJSC (Armsberbank before) was founded in 1923. Up to
1993 it was a member of the State Sberbank of USSR, and then it became
a specialized Sberbank of Armenia. In 2001, the bank was privatized as
Armsberbank through direct purchase by ARCH Limited (Bagamian Islands)
and MIKA Armenia Trading. In April 2004 the Russian Vneshtorgbank
purchased 70% of the shares of Armsberbank.

According to the official balance sheet data, as of March 31 2007
the total capital of Bank VTB (Armenia) made AMD9.5bln, total assets
AMD43.6bln, balance sheet profit AMD 1.6bln and the profit by the
end of 1st quarter 2007 made AMD160.2mln. ($1 = AMD347.73)