Bank Announces Intention to Float

“Bank “Saint-Petersburg” Open  Joint-Stock  Company (“BSPB” or “the Company”), today announced its  intention to launch a  public offering of newly issued ordinary shares  and unlisted global  depositary receipts (“GDRs”). Shares will be offered  in the Russian  Federation and to investors outside the United States in  offshore  transactions in reliance on Regulation S of the U.S. Securities  Act of 1933.   Under the GDR programme, the GDRs will be offered outside  the United  States and the Russian Federation on the OTC market, also in  reliance on  Regulation S of the U.S. Securities Act of 1933.  The  GDR programme is  expected to be terminated after the registration of  placement report with  respect to the newly issued ordinary shares.  

The Company has  applied to list its ordinary shares on the  Russian Trading System (RTS) and  the Moscow Interbank Currency Exchange  (MICEX).  New shares  representing up to 18% of the Company’s  post-offering share capital will  be offered in the IPO, which is  intended to take place before the end of the  year.

The Company  intends to use the proceeds from the offering  to fund the growth of  assets, expand its operations and for general banking   purposes.

Deutsche Bank has been appointed as Sole Global      Coordinator of the offering and together with Renaissance Capital are  the  Joint Bookrunners for the offering.

Saint Petersburg with  over  4 million inhabitants is the 4th largest city in Europe.  BSPB  is a  leading private universal bank in Saint Petersburg and Leningrad  Region with  10% regional market share of loans and 9% regional market  share of deposits  as of 1 January 2007 with a particular strength in  corporate banking which  represents the majority of BSPB business.  

BSPB's assets have  increased since 31 December 2004, from US$599  million to US$3,267 million as  at 30 June 2007. BSPB has maintained  strong returns, as reflected by its  return on average equity of 27% as  at June 30, 2007 (on annualized basis)  and 31% as at 31 December 2006,  and cost to income ratio of 39% and 43% as  of 30 June 2007 and 31  December 2006 respectively.

Commenting  on the offering, Indrek  Neivelt, Chairman of BSPB’s Supervisory Board,  said:

“We believe  BSPB will be the first Russian regional bank  to conduct an IPO.  We  do business in one of Russia’s fastest growing  regions, fuelled by its  expanding industrial activity, the continuing     relocation of the  headquarters of some of Russia’s leading companies,  growing tourism, and  a region which is still underbanked.”  

Alexander Saveliev, the  Company’s CEO, added:

“We  are the leading independent bank in the  St. Petersburg region, with a track  record of profitability and growth.   We have a total of 29 branches and  outlets, around half a million  retail and 30,000 corporate customers.      This IPO will  enable us to further strengthen our capital base and  support our ongoing  expansion, building on the solid foundation that we have  established  over the last 17 years.”