IS INVESTMENT

Financial Results & Performance

2007/Q3

2

Is Investment was established by Is Bank in 1996, with a paid in capital of NTL 500.000. The company has started with 42 staff and reached 272 employees as of 2007/Q3 and shareholders’ equity increased to NTL 235.9 mn. at the same time.

Is Investment - the investment arm of Is Bank and the leading investment banking institution in Turkey - stands out as the only listed brokerage house in the country offering variety of services, such as;

Brokerage (Trading securities including domestic and international equities, fixed income

and derivatives)

Investment Advisory

Asset Management

Corporate Finance (Public offerings, M&A’s and strategic consultancy)

Research

About Us

3

Overview of Turkish Capital Markets - 1

Equity Market (NTL Billion)

2006/Q3 2007/Q3

513.9

574.5

Equity market displayed a better performance withrespect to the same period of 2006

Bills & Bonds Market (NTL Billion)

579.3 575.5

The comparative low uncertainities on politic area in 2007/Q3, led the Bonds & Bills market trading volume almost catch up with 2006/Q3.

2006/Q3 2007/Q3

4

Overview of Turkish Capital Markets - 2

Derivative Market (NTL Billion)

2006/Q3 2007/Q3

21.4

144.1

913 2.0483.677

25.01020.271

29.268

Mutual Funds (USD Million)Pension Funds

2005 2006 26/10/2007

Portfolio size of pension funds still keep on becoming the driving force of the fund management business, rising 78% with respect to the end of 2006

Derivative market displayed a paramount performance and reached more than two-folds of our year-end trading volume target, growing 571% compared with 2006/Q3

5

Overview of Turkish Capital Markets - 3Number of Public Companies Traded on the ISE

2005 2006 2007/Q3

306

322

326

Market Capitalisation ($ Billion)

Average Free Float Rate (%)

2005 2006 2007/Q32007/Q3

30,9

31,631,4

2005 2006 2007/Q3

162.8163.7

285.8

6

Overview of Turkish Capital Markets - 4 (Foreign Investors)

2003 2004 2005 2006 2007/Q3

Share in Total Equity Portfolio (%)

51

59

67 67

72

Trading Volume / Total Equity Trading Volume (%)

2003 2004 2005 2006 2007/Q3

9

12

1819

30

Foreign investors trade 30% of the ISE trading volume, while they hold the 72% of the free float market capitalisation

7

Market Share in Equity Market Share in Equity Market

Equity Market - Is Investment (NTL Billion)

2006/Q3 2007/Q3

32.8

36.3

6,38%6,33%

We maintain our leadership position as of 2007/Q3 with NTL 36.3 bn trading volume and 6,33% market share

Our performance is in line with our targets.

8

Market Share in Bills & Bonds Market

Bills & Bonds Market - Is Investment (NTL Billion)

2006/Q3 2007/Q3

16.9

11.3

13,65%

12,43%

We hold one of the first leading ranks with 12,43% market share and 11.3 bn trading volume and it is expected to see a recovery in the market with the issuance of private sector bonds in 2008

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Market Share in Derivative Market

Derivative Market – Is Investment (NTL Billion)

2006/Q3 2007/Q3

6.1

25.2

17,53%

27,4%

Our derivative market trading volume is already quite close to the two-folds of our year-end target figure (NTL 14 bn) we had set for the full year, reaching NTL 25.2 bn.

We maintain our uncontested leadership as of 2007/Q3 with 17,53% market share despite the rise in the market players.

Our client base in derivative products continue to get wider in each quarter as stated before (foreign & domestic).

Quite close to the two-folds of our year-end target

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Trading Volume in International Capital Markets

IInternational Capital Markets – Is Investment (USD Billion)

2006/Q3 2007/Q3

1.2

12.5

Our trading volume reached USD 12.5 bn from USD 1.2 bn surging by ten-folds of the same period of 2006 and our trading volume will likely increase with the anticipated new instruments in international capital markets

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Asset Under Management

AuM & Pension Funds Portfolio Size – Is Asset Management (Million NTL)

The growth trend of mutual funds kept rising in 2007/Q3 due to the new accounts and the rise in current portfolios and reached NTL 6.6 billion, after the major shake out in 2006

2005 2006/Q3 2006 2007/H1 2007/Q3

The portfolio size of pension funds grows in parallel with the overall market

173

7.043

6.003

410

516

5.247

682

6.484

777

6.620

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Corporate Finance (Public Offerings - M&As)

2006/Q3 2007/Q3

Public Offering Size (USD Million) - Is Investment

1.911

708

M&As Size (USD Million) - Is Investment

2006/Q3 2007/Q3

341

34.9

The largest privatization offering in the Turkish capital markets - Halkbank - completed this year

We executed USD 341 mn. amounted 6 M&As while it was USD 34,9 mn. in the same period of 2006 and new corporate bond and IPO projects are in the pipeline

The largest domestic demand forThe largest domestic demand forTekfen Holding Tekfen Holding

among the private sector IPOsamong the private sector IPOs

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Income Statement

Is Investment

NTL (000)

Operating Income

Interest and Trading Income

Commission Revenues

Income from Corporate Finance

Other Income

Total Operating Revenues

Operating Expense

Net Operating Profit

Other Expenses

Financial Expenses

Minority Expense

EBT

Tax

Net Profit

2006/Q3 2007/Q3 YoY ▲%

56.676

37.093

5.125

4.864

103.758

-41.884

61.874

-4.324

-4.100

-26.760

26.690

-5.260

21.430

17.150

29.513

6.653

7.340

60.656

-30.204

30.452

-7.944

-7.802

-406

14.300

-1.847

12.453

230

25

-22

-33

71

38

103

45

47

n.m.

86

184

72

14

Operating Revenues

((NTL 000)

Interest and Trading Commissions Corporate Finance Other

17.150

56.676

29.513

37.093

6.653 5.1257.340

4.864

2006/Q3

2007/Q3

Is Investment’s total revenues amounted to NTL 103.7 mn in 2007/Q3, up by 71% on YoY basis.

Interest and trading revenues displayed a sharp growth, increasing to NTL 56.6 mn. from NTL 17.1 mn. The dismal 2006/Q3 results could be attributed to the low credit volumes and the negative impact of the turmoil.

Commission revenues reached NTL 37.1 mn, surging by 63% over 2007/H1 figure, the commissions had totaled NTL 29.5 in the period of 2006/Q3.

Other revenues amounted to NTL 4.8 mn down from NTL 7.3 mn due to the mainly decline in marked to market value of Is Private Equity.

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Brokerage & Trading Commissions (YoY)

(NTL 000)

2006/Q3

2007/Q3

Brokerage Asset Management Other

20.544

28.647

4.462

7.468

4.507

978

Brokerage commissions reached NTL 28.6 mn. recording 39% rise over its 2006/Q3 performance.

Commissions on derivatives rocketed by five-folds on YoY basis in 2007/1H, reaching NTL 5.7 mn. vs NTL 1.1 mn in 2006/Q3.

Fees on asset management rose to NTL 7.4 mn. due to the effect of 70% consolidation of Is Asset Management started in 2007/Q3.

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Margin Trading

Outstanding Loans (NTL Million) Interest on Loans Extended to Clients (NTL Million)

2006/Q3 2007/Q306/Q1 06/Q2 06/Q3 07/Q3

31.5

21

35.2

67.1

10.4

4.1

Interest income on margin accounts recorded 153% YoY growth, reaching NTL 10.4 mn and loans to clients reached NTL 67.1 mn as of 2007/Q3 surging by 91% with respect to the same period of 2006

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Operating Expenses

NTL (000) 2006/Q3 2007/Q3 YoYNTL (000) 2006/Q3 2007/Q3 YoY ▲▲

Employee Costs 15.233 19.648 28%Severance 188 170 -9%Depreciation 898 905 0.7%Goodwill -253 -598 136%Consultancy 1.853 1.650 -11%Operating Costs 5.922 9.694 63% Sundry Taxes 3.841 5.232 36%Advertisement 1.198 903 35%

Marketing and Dist. 1.324 4.280 223% Total 30.204 41.884 38%

Operating costs recorded 38% rise on YoY basis and foreign marketable security transaction shares and other marketing, selling and distribution expenses also emerged as important cost components of operating expenses in 2007/Q3

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TradeMaster International (TMI) – A New ProductTradeMaster International (TMI) – A New Product

To perform stock and forward contract transactions in various global stock exchanges

With the incentive marketing, many requests recieved for the initial With the incentive marketing, many requests recieved for the initial and unique application for the e-trade platform in the country -TMI- and unique application for the e-trade platform in the country -TMI-

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TradeMaster International Features

Allows investors to reach information on the global markets in detail and in real time and to perform stock and forward contract transactions in various global stock exchanges quickly and easily with access to pertinent information.

Allows investors to undertake transactions in various global stock markets with detailed and real-time information.

Allows investors to carry out visual and statistical analysis using various techniques on detailed and real time data.

This application enables investors to carry out transactions and keep a watch on their investments in global markets from their own PC or any location with internet access.

TradeMaster International allows investors to reach global markets directly and quickly through simple menus.

Each time it is opened, TradeMaster International automatically downloads and installs any new versions. As a result, new versions are always updated, and the program allows investors to work with an updated version

Provides additional security for its investors through various channels of security within its software.

Advantages

Limits on investor accounts, specified by Is Investment, may be uploaded to the program and investors can perform the required transactions in international markets within specified limits.

Ensures speed and ease for investors in their transactions in global markets.

The program allows investors to perform transactions directly and without the need for any other intermediary.

The program allows investors to access global market data in detail and in real time

Investor Profile

Traders interested in global markets and various products in these markets.

Investors seeking to follow their investments closely while on business or personal travel.

Those who use visual and statistical analysis in reaching investment decisions, and those who would like to carry out such analysis independently.

Those who place importance on speed in their transactions.

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Conclusion

2007/Q3 profit enforces our estimates to exceed the year-end profit target.

We maintain our dividend policy disclosed to the public (minimum 20% of the distributable profit).

Maxis Securities - the full subsidiary of Is Investment - started to welcome the client accounts and started to deal and it is planned to increase our international capital markets efficiency with Maxis.

There are 2 corporate bond issue projects that will be finalized in the last quarter and 2 IPO’s are also in the pipeline for the year 2008.

70% consolidation of Is Asset Management that started in 2007/Q3 positevely effected our profit as stated before.

Akaretler Branch has gone into operation in Istanbul as the 5th branch of Is Investment and the 6th one will probably be seen in 2008.

TradeMaster International (TMI) has already been requested by many investors, and also theTradeMaster (the domestic form of TMI)

Some institutional investors apply Is Investment to establish new funds which are to be managed by us.

CMB approval for our capital-guaranteed fund is waited to be finalized in the last quarter.

We have set out a new and active marketing policy in cooperation with the private banking department of Isbank.

Foreign investors will be able to trade directly at ISE-Equity market via GL Trade served by Is Investment in the last quarter.

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The information in this report is prepared by “IS YATIRIM MENKUL DEGERLER A.S.” (İş Investment) and it is not to be construed as an offer or solicitation for the purchase or sale of any financial instrument or the provision of an offer to provide investment services. Information, opinions and comments contained in this material are not under the scope of investment advisory services. Investment advisory services are given according to the investment advisory contract, signed between the intermediary institutions, portfolio management companies, investment banks and the clients. Opinions and comments contained in this report reflect the personal views of the analysts who supplied them. The investments discussed or recommended in this report may involve significant risk, may be illiquid and may not be suitable for all investors. Therefore, making decisions with respect to the information in this report cause inappropriate results.

All prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this report is strictly prohibited. The information presented in this report has been obtained from sources believed to be reliable. Is Investment cannot be held responsible for any errors or omissions or for results obtained from the use of such information.

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IS INVESTMENT SECURITIESIS INVESTMENT SECURITIES

isyatirim.com.trisinvestment.com

HEAD OFFICE

Is Kuleleri Kule-2 Kat 12

4. Levent 34330 Istanbul

Ph: (0212) 350 20 00

Fax: (0212) 325 12 26 – 325 12 48

IZMIR BRANCH

Talatpasa Bulvari No:27

Alsancak 35220 Izmir

Ph: (0232) 488 90 00

Fax: (0232) 464 69 43 – 464 68 98

KALAMIS

BRANCH

Fenerbahce, Fener Kalamis Cad.

Tibas-Belvu Sitesi A2 Blok Daire 3

Kadikoy 81030 Istanbul

Ph: (0216) 542 72 00

Fax: (0216) 542 72 01

ALMA ATA

LIAISON OFFICE

181 Zheltoksan St. The Regent Almaty

Oda 108 Almaata 480013 Kazakhstan

Ph: (+73272) 505000

Fax: (+73272) 582805

ANKARA

BRANCH

Tahran Cad. No:3/8

06700 Kavaklidere - Ankara

Ph: (0312) 455 26 50

Fax: (0312) 466 26 62

YENIKOY

BRANCH

Koybasi Caddesi Iskele Cikmazi No 277

34464 Yenikoy ISTANBUL

Ph: (0212) 363 01 00

Fax: (0212) 363 01 01

AKARETLER

BRANCH

Akdeniz Cad. No:14 Birsel İş Merkezi

Daire: 601 35210 Alsancak / İZMİR

Ph: (0232) 488 90 00

Fax: (0232) 488 90 01

LEVENT

LIAISON OFFICE

Yapi Kredi Plaza C Blok Kat 9 Bolum

25/B 34330 Besiktas, Istanbul

Ph: (0212) 282 00 18

Fax: (0212) 282 00 19

SUBSIDIARY MAXIS SECURITIES LTD

8 Princes Street

London EC2R 8HL UK

Ph: (+44207) 397 1431

Fax: (+44207) 726 2566