Egidaco Investments PLC, the Parent Company of TCS Bank Expects Accounting Losses Due to Weakening Rouble

Egidaco Investments PLC (“Tinkoff”), the parent company of ‘Tinkoff. Credit Systems’ Bank (TCS Bank), announced today that, according to preliminary figures for fourth quarter 2008, the Group expects to show accounting losses as a result of the sliding Rouble. The Rouble:US Dollar and Rouble:Euro exchange rates fell sharply in November and, particularly, in December. As a result, there is a possibility that Tinkoff may find itself in breach of some of its undertakings to bondholders and other lenders. These assumptions are preliminary and the exact figures will appear as soon as the quarterly accounts are prepared. Tinkoff would like to emphasise that this does not affect its ability to service its debts or to pay coupon to bondholders on schedule, and will communicate further with investors on this matter in the near future.

TCS Bank is Russia’s first specialised credit card bank and is fully licensed by the Central Bank of Russia. TCS Bank is a well-managed, liquid and since October 2008 a cash flow positive company; it currently has over 300,000 credit cards issued, of which 250,000 have been activated. This gives TCS Bank a portfolio with a gross-yield consistently over 65-70%; at year-end 2008 the portfolio was over 4.8 bn Roubles corresponding to approximately 2.5% of the Russian credit card market. TCS has switched from growth mode to a ‘steady-state’ regime until further funding can be secured. Due to the main strategy of TCS Bank and the conservative approach that has been adopted, it is not subject to many of the risks faced by its competitors.

For further information please contact
Oliver C. Hughes, CEO
+ 7 495 648 1000
e-mail: o.hughes@tcsbank.ru

website: http://www.eginvestments.com