ARMROSGASPROM’S AUTHORIZED CAPITAL STOCK TO TOTAL $1.150 BLN. IN LATE 2008

ARKA
July 15

ArmRosGasProm’s authorized capital stock will total $1.150bln by late
2008, ArmRosGasProm General Director Karen Karapetyan said at today’s
ceremony on the placement of non-documentary bonds.

"At present, our company’s authorized capital stock totals $900mln,"
he added.

Karapetyan believes the company’s market capitalization will be worth
some $2bln.

Karapetyan formerly said the Armenia will keep increasing its share
in the company’s authorized capital stock (22.78%) thanks to the
IFAD program on financing gas supply projects, TACIS support and
budget funds.

On February 15, the RA Public Services Regulatory Commission (PSRC)
allowed Gazprom to purchase 19mln worth nominal bonds of ArmRosGasProm.

After the additional issue of the bonds, the company will pump 95.5bln
drams into its authorized capital stock.

On July 15, ArmRosGasProm announced issue of nominal coupon
non-documentary bonds worth 1bln drams. The nominal value of the
36-week bonds was 50,000 drams with their interest yield being 9.5%.

Monopolist in Armenia’s gas supply market, the ArmRosgasprom CJSC
was established in 1997. The company’s capital amounts $900 mln.

Its shareholders are the Gasprom OJCS (72,16% of shares), the RA
Ministry of Energy (22,78%) and the Itera Oil and Gas Company (5,06%).