KAZAKHSTAN STOCK EXCHANGE INC.

Tallinn2007, May 13–14

YOUNG AND SINGLE

KASE was established at November 17, 1993 under the name of Kazakh Interbank Currency Exchange, two days after the launching of tenge – new legal tender of Kazakhstan.

KASE – non-commercial joint-stock company with the 59 shareholders – National Bank of Kazakhstan (the largest shareholder), banks, brokerage firms, asset management companies, pension funds and other professional financial institutions. All of them have only one vote each.

UNIVERSAL EXCHANGE

KASE serves the markets of: foreign currenciesmoney marketequities corporate bondsgovernment securities derivative instrumentspromissory notes …

OUR MEMBERS

KASE has 86 members:

banks 29 brokerage firms 49 asset management companies 8

TRADING FLOORS (LISTING CATEGORIES)

TRADING FLOOR FOR LISTING COMPANIESCategory "A" Category "B" Non listing securities sector

SPECIAL TRADING FLOOR OF RFCAOfficial list of special trading floor Non listing securities of the Financial Centre

IMPRESSIVE DYNAMICS OF TRADE VOLUME

0

20

40

60

80

100

120

140

160

180

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

0

50

100

150

200

250

KASE, bn USD

% to GDP

GDP, bn USD3M

220.5%

UNIVERSAL EXCHANGE (3 months 2007)

In total, repo (money) market takes 69.2% of general KASE turnover

10,5%

4,2%

3,0%53,8%

25,1%

2,8%

Currencies,16 747,7 mln USD

Corporate securities,1 851,9 mln USD

Public securities,1 987,1 mln USD

Direct repo with corporate securities, 2 773,7 mln USD

Autorepo with corporate securities, 6 987,9 mln USD

Autorepo with public securities,35 924,5 mln USD

Direct repo with public securities, 494,1 mln USD (0,7%)

66 807,2mln USD

10,5%

4,2%

3,0%53,8%

25,1%

2,8%

Currencies,16 747,7 mln USD

Corporate securities,1 851,9 mln USD

Public securities,1 987,1 mln USD

Direct repo with corporate securities, 2 773,7 mln USD

Autorepo with corporate securities, 6 987,9 mln USD

Autorepo with public securities,35 924,5 mln USD

Direct repo with public securities, 494,1 mln USD (0,7%)

66 807,2mln USD

DOMINATION OF REPO AND FOREX MARKETS

KASE repo market is specially designed for domestic purposes – to satisfy the needs of local pension funds and banks in short-term money borrowings and lendings.

KASE foreign currencies market – the basic trading site for the National Bank of Kazakhstan to regulate the exchange rate of tenge.

KZT/USD: the KASE exchange rate today = official exchange rate tomorrow.

CORPORATE SECURITIES MARKET

Total KASE turnover for 3 months 2007 with the equities – 793,5 mln USD,with the corporate bonds – 1 098,7 mln USD

0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Equities

Corporate bonds

Turn

over

, b

n U

SD

3M

MARKET CAPITALIZATION (bn USD)

0

10

20

30

40

50

60

70

2001 2002 2003 2004 2005 2006 2007

Equities

0

2

4

6

8

10

12

14

2001 2002 2003 2004 2005 2006 2007

Corporate bonds65.5 bn USD 13.7 bn USD

0

10

20

30

40

50

60

70

2001 2002 2003 2004 2005 2006 2007

Equities

0

2

4

6

8

10

12

14

2001 2002 2003 2004 2005 2006 2007

Corporate bonds65.5 bn USD 13.7 bn USD

UNEXAMPLED GROWTH (in 2005–2007)

Index KASE_Shares demonstrated the rapid growth: 11.1 times (for the period Jan.05, 2005 – Apr.19, 2006) due to the appearance of new investors’ class – mutual funds and individuals, and 8.6% (for the period Jan.03, 2007 – May.03, 2007).

0

500

1000

1500

2000

2500

3000

01.0

1.2

005

01.0

4.2

005

01.0

7.2

005

01.1

0.2

005

01.0

1.2

006

01.0

4.2

006

01.0

7.2

006

01.1

0.2

006

01.0

1.2

007

01.0

4.2

007

KASE_Shares2 808

(12.02.07)

2 394 (19.04.06)

216

(05.01.05)

GROWING ACTIVITY OF INDIVIDUALS (equity market)

2,5

12,815,1

16,9

24,4

2003 2004 2005 2006 2007

Market share of individuals’participation, %

3 m

0,420,34

0,150,07

0,98

0,7

4,03

1,04

2000 2001 2002 2003 2004 2005 2006 2007

Total volume of exchange transactions, bn USD

3 m

2,5

12,815,1

16,9

24,4

2003 2004 2005 2006 2007

Market share of individuals’participation, %

3 m

0,420,34

0,150,07

0,98

0,7

4,03

1,04

2000 2001 2002 2003 2004 2005 2006 2007

Total volume of exchange transactions, bn USD

3 m

GROWING ACTIVITY OF INDIVIDUALS (corporate bonds market)

1,4

7,5

15,9 16,1

20,9

2003 2004 2005 2006 2007

3 mMarket share of individuals’participation, %

0,60,3

0,20,05

0,91,1

3,0

1,7

2000 2001 2002 2003 2004 2005 2006 2007

3 m

Total volume of exchangetransactions, bn USD

1,4

7,5

15,9 16,1

20,9

2003 2004 2005 2006 2007

3 mMarket share of individuals’participation, %

0,60,3

0,20,05

0,91,1

3,0

1,7

2000 2001 2002 2003 2004 2005 2006 2007

3 m

Total volume of exchangetransactions, bn USD

LISTED COMPANIES

Listed companies Securities

17 2332

4968

7994

114118

1999 2000 2001 2002 2003 2004 2005 2006 2007

TOTAL

17 1721

54

62

69

25

40

68

80

2

78

564545

36

11

22

1999 2000 2001 2002 2003 2004 2005 2006 2007

Equities

Corporate bonds

3 m3 m

17 2332

4968

7994

114118

1999 2000 2001 2002 2003 2004 2005 2006 2007

TOTAL

17 1721

54

62

69

25

40

68

80

2

78

564545

36

11

22

1999 2000 2001 2002 2003 2004 2005 2006 2007

Equities

Corporate bonds

3 m3 m

LISTED COMPANIES (by structure)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 200020012002 20032004200520062007

Finance

Oil & gas

Mining & metallurgy

Telecommunication

Food industry

Commerce

Transport

Power engineering

Building industry

Other

Equities 3M

1999 2000 2001 2002 2003 2004 2005 2006 2007

Corporate bonds3M

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 200020012002 20032004200520062007

Finance

Oil & gas

Mining & metallurgy

Telecommunication

Food industry

Commerce

Transport

Power engineering

Building industry

Other

Equities 3M

1999 2000 2001 2002 2003 2004 2005 2006 2007

Corporate bonds3M

LISTED SECURITIES (by categories)

9 8 8 1220

27 3038 38

7 9 1313

20

2732

31 32

1999 2000 2001 2002 2003 2004 2005 2006 2007

Category "A"Category "B"

Equities

6 11 6 717 2020

3034 39

49

61 60

21

10

2

1999 2000 2001 2002 2003 2004 2005 2006 2007

Category"A"Category"B"

Corporate bonds 3М3М

9 8 8 1220

27 3038 38

7 9 1313

20

2732

31 32

1999 2000 2001 2002 2003 2004 2005 2006 2007

Category "A"Category "B"

Equities

6 11 6 717 2020

3034 39

49

61 60

21

10

2

1999 2000 2001 2002 2003 2004 2005 2006 2007

Category"A"Category"B"

Corporate bonds 3М3М

SPECIAL TRADING FLOOR OF RFCA

Number of Issuers – 14Number of securities issues – 56 Shares – 15 Bonds – 41All of them are listed at KASETotal trade volume of stocks and bonds transactions – 40.3 mln USD Shares – 39.9 mln USD (sale of state block of Kazakhtelecom's shares among pension funds), Bonds – 404.8 thousand USD

FOREIGN SECURITIES

Different ways for foreign companies which want to make borrowing in Kazakhstan on the exchange market: shares placement, IPO (securities need to be listed on KASE or on special trading floor of RFCA) bonds issue, which is registered in accordance with legislation of a foreign state (securities need to be listed on KASE or on special trading floor of RFCA) bond issue, which is registered in accordance with legislation of the Republic of Kazakhstan Kazakhstan Depository Receipts, etc

RULES AND REQUIREMENTS

All listing requirements are established by the following documents:

special normative act the Resolution of the FSA Board №63 "About Requirements for Issuers and Their Securities admitted in circulation on the Stock Exchange and for Specific Categories of the Stock Exchange Listing"

Internal document of KASE "Listing rules of KASE"

Internal document of KASE "Listings Requirements of Foreign Securities and Kazakhstan Depository Receipts"

Internal document of KASE "Rules of organization and functioning of the special trading floor of RFCA"

LISTING REQUIREMENTS TO FOREIGN ISSUERS AND THEIR SECURITIES:Requirements CATEGORY "A" CATEGORY "B"

Existence term Not less than 3 years

Financial statements in compliance with

IAS/IFRS or GAAP

Equity 100 mln USD 10 mln USD

Net profit for 3 last years for 1 last year

Audit Delloitte, Ernst&Young, KPMG, Waterhouse Coopers

Ratings (shares, bonds)

no lower than

S&P, Fitch BBB-Moody’s Baa3

BB2

Presence of market-maker

Required

Settlements Only through Central Depository of Securities

LISTING REQUIREMENTS TO FOREIGN ISSUERS AND THEIR SECURITIES (2):

It is necessary to have rating of the issuer and (or) its securities excluding shares, which are listed on the main floor (under the highest listing category) of one of the following stock exchanges: NASDAQ, NYSE, Deutche Boerse, Euronext, London SE, Tokyo SE, BME Spanish Exchange, Borsa Italiana, SWX Swiss Exchange, Taiwan SE.

1st condition

Listing on one of the stock exchanges which are included into the list approved by Authority body of RFCA, Toronto SE, Tokyo SE, BME Spanish Exchange, Borsa Italiana, SWX Swiss Exchange, Taiwan SE, Hong Kong SE, Singapore SE, Shanghai SE, Moscow Interbank Currency Exchange, The First Stock trading system’ association and KASE.

LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA

LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA (2)

2nd condition The minimum rating of the issuer and (or) its securities must be not less than ‘BB-’ (according to the classification of the rating agencies ‘Standard & Poor's’ or ‘Fitch’) or ‘Ba3’ (according to the classification of the rating agency ‘Moody's Investors Service’).

LISTING REQUIREMENTS OF SPECIAL TRADING FLOOR OF RFCA (3) Requirements 3rd condition

Existence term Not less than 1 yearFinancial statements in compliance with

IAS/IFRS or GAAP

Equity not less than share capital & 200.000 USD Audit auditing organisations which meet with qualification

requirements for organisations of auditors for the admission of financial instruments to the special trading floor of the Financial Centreas approved by the Agency

Presence of market-maker

required

Size of assets 1 mln USD

ADVANCED TECHNOLOGIES

KASE uses it’s own trading platform:on-screen based electronic "Server – Client" system remote accesselectronic signature and electronic documents circulation traffic encryptionon-line data saving

Central Depository is the KASE subsidiary:DVPT+0 settlement basis

KEY FEATURESGrowth of daily equity trade figuresRising market share of individuals First results on IPO

STEP UP TO FUTURE DEVELOPMENT

IN THE FUTURE

Waiting for the IPO of the largest Kazakhstan banks and producers (according to the Securities Law, at least 20% of the local shares being placed must be suggested at the domestic market for purchase)

Welcoming the new listing companiesWaiting for the IFOs to place their bonds in Kazakhstan Improving settlements procedure, establishing Guarantee

Fund

CONTACT US

Internet: www.kase.kz

e-mail: kase@kase.kz

phone: (+7 327) 272 98 98, 272 06 00

fax: (+7 327) 272 09 25

address: 67, Aiteke bi street, Almaty, 050000, Kazakhstan