CIS AND TURKEY TO JOIN KPMG EUROPE LLP

Consultant News
13/08/2009

The partners of KPMG CIS (Commonwealth of Independent States)
and KPMG Turkey have overwhelmingly voted to join KPMG Europe LLP
(ELLP) alongside the UK, Germany, Switzerland, Spain, Belgium and
the Netherlands.

CIS and Turkey to join KPMG Europe LLP Partners of KPMG CIS, which
consists of Russia, Ukraine, Kyrgyzstan, Kazakhstan, Armenia and
Georgia, approved the merger proposal in a vote last month. The ELLP
partners have now also voted in favour of the agreement.

As part of the merger, Andrew Cranston, Senior Partner for KPMG CIS,
will join the ELLP board.

In a separate vote, the partners of KPMG Turkey have also decided to
join ELLP. This agreement has also been approved by the ELLP partners.

The combined firm will have 30,000 partners and staff working from
more than 100 offices – with net revenues of ~@4.6bn in 2008.

The decision of the CIS and Turkey partners to join enhances KPMG’s
position as the most fully integrated accountancy firm across Europe.

Rolf Nonnenmacher and John Griffith-Jones, Joint Chairmen of ELLP,
said: "We warmly welcome the decision of our colleagues in KPMG CIS and
KPMG Turkey to join ELLP. We are convinced that this is a significant
and vital move towards creating an integrated firm with the strength
and resources necessary to compete effectively in the changing global
economic environment and we look forward to further strengthening
our position as other member firms join in the near future."

KPMG CIS offers the full range of KPMG services. Since its
establishment in the early 1990s, it has grown rapidly to become the
second biggest firm in the CIS accounting markets and has developed a
large client base, which includes Lukoil, Rusal and a number of other
Russian companies operating globally. In the year to September 2008
revenues were ~@210m.

Andrew Cranston added: "The merger will increase our ability
to retain and target major audit clients, especially those with
international operations and ambitions, and to target the largest
advisory opportunities.

"We also believe that closer access to and involvement in innovation,
initiatives and tools, will enhance quality and efficiency across
our practice. All of this will be positive for our people, providing
additional development and career opportunities."

KPMG Turkey is an established full service practice with revenues of
USD42 million in 2008.

Ferruh Tunc, Chairman and Senior Partner for KPMG Turkey said: "Our
decision to join KPMG Europe could not come at a better time. There
is an important change planned for 2010 which will require auditor
rotation in Turkey and this will generate significant opportunities
for us, which this merger will help us to maximise."