ARMROSGASPROM ISSUES BONDS OF 1BLN AMD TOTAL WORTH

ARKA
July 15

ArmRosgasprom has announced an issue of registered coupon
non-documentary bonds of 1bln AMD total worth.

The company’s Deputy Financial Director Vahagn Arakelyan said this
issue pursues both commercial and social goals.

"Seventy thousand new customers are supposed to join our subscriber
base due to this issue," he said.

A total of 20,000 bonds at a nominal of 50,000 AMD, interest rate
at 9.5% and 36-month maturity were issued. Payments are to be made
every six months.

The first issue of ArmRosgasprom 18-month coupon bonds was completed
July 04, 2007. Corporate bonds with 1bln AMD total worth and 9%
annual interest rate were issued.

"Due to the first issue we managed to attract 34,000 people to our
subscriber base mostly representing the vulnerable sections of the
population. In fact, the total number of our subscribers was 76,000
in 2007," Arakelyan said.

Vice Chairman of Armenian Central Bank Vache Gabrielyan stressed that
ArmRosgasprom is the largest corporate bond issuer in Armenia whose
bonds provide 16% of all the securities transactions on the stock
exchange and 23% of all he corporate securities transactions.

In September, 2007, the ArmRosgasprom Board of Directors approved
the program about an issue of bonds of 5bln AMD worth to finance the
gas supply activity in Armenia. As part of the f irst issue 10,000
mid-term coupon bond with a nominal price of 10,000 AMD were issued.

Both legal entities and individuals are eligible to acquire coupon
non-documentary coupons.

A discount will be available in public offering to ensure 10% annual
investment income for investors.

ArmRosgasprom has a monopoly right to deliver and distribute Russian
natural gas on Armenian market. The company was founded in 1997. Its
total capital according to April data was 900mln. USD, the shareholders
are Gasprom (72,16%), the Ministry of Energy of Armenia (22.78%)
and the Itera oil and gas company (5.06%). ($1 – 302.64 AMD).