CASCADE INSURANCE COMPANY’S PAID UP SHARE CAPITAL INCREASED FOR 200MLN DRAMS

Mediamax Agency, Armenia
Dec 10 2007

Yerevan, December 10 /Mediamax/. Cascade Insurance Company’s paid up
share capital increased for 200mln drams and made 618mln 640 thousand
drams (over $2mln).

Mediamax reports that the General Manager of Cascade Insurance Garnik
Tonoyan said this in Yerevan today. He noted that the increase of the
paid up share capital evidences the confidence of the shareholders
for the Company’s activity and the presence of long-term plans in the
relation of the county’s insurance market. 65% of Cascade Insurance
shares belong to Cascade Capital Holding, and 35% – to the European
Bank for Reconstruction and Development (EBRD).

Garnik Tonoyan gave positive assessment to the recent legislative
changes in the country’s insurance market, singling out the regulatory
role of the Central Bank. He noted that as a result of the reforms
realized, insurance companies with high capitalization have remained
in the market.

Cascade Insurance has launched a 24 hour customer service call center,
due to which over 7000 customers can operatively receive answers to
all the questions of interest for them concerning medical insurance
by means of the "call center".

Executive Director of Cascade Insurance Levon Mamikonyan presented
the results of the Company’s work in the course of 9 months of 2007.

The volume of attracted payments exceeded 427mln drams, the number
of insurance agreements made 1145. The Company paid insurance
compensations at the sum of 88mln 600 thousand drams (1724
applications), most part of which falls on the share of medical
insurance, the second place is occupied by car insurance.

Concerning the attracted payments, 12,4% of the insurance market of
the country (3rd place in the market) falls on the share of Cascade
Insurance, as to the payment of insurance compensations – 14,8%
(second place in the market).

In the course of the 9 months of 2007, the profit of the company made
over 23mln drams.