OJSC CB SOTSGORBANK raised 500 million in rubles (approximately $21,300,000) on the Russian Exchange MICEX. Demand for the bond issue was oversubscribed with investors placing orders worth a value of 614 million rubles.

“Despite the difficult situation in the financial markets over the last six months, investors continue to support the growth and strategic plans of SOTSGORBANK” - said Andrei Stratulat, Treasury Director. Proceeds of the issue will be invested in the Bank’s regional expansion and support its lending programs to small and medium size enterprises in Russia.

Comments Thomas Nastas, independent director, member of SOTSGORBANK board of directors, “the global turmoil that rocks the capital markets in Russia and abroad has caused a number of creditworthy companies to postpone their capital raising plans. But SOTSGORBANK continues to enjoy the confidence of domestic and international investors as the success of this bond placement demonstrates. As SOTSGORBANK management exceeds the business plan set forth to them by the Board of Directors and approved by shareholders in 2008, I am confident that investors will support our future financing needs. In the last nine months, from July 2007-March 2008, SOTSGORBANK raised approximately $42 million in debt and equity, a testimony to the success of the management to achieve its growth objectives.”

The bond placement was organized by Russian company Ltd. BK REGION, with co-organizers including CB CAPITAL MOSCOW (LLC), OJSC Investor Center; OJSC Alfa-Bank, IC GRF (LLC) with co-underwriters including CRA Lanta-Bank (CJSC), and CJSC IC OEMK-Invest.