OREANDA-NEWS. On 22 May 2009 due to the recent deterioration in the financial condition of JSC Astana Finance further exacerbated by a number of ratings downgrades, Astana Finance and Astana Finance B.V. announced their decision to suspend payments of interest and principal on their international obligations and, in the case of Astana Finance, to suspend principal payments on certain of its domestic obligations, as of 15 May 2009 in each case. This suspension of payments also affects certain obligations that recently became due and payable as a result of the ratings downgrades.

The deterioration in the Company’s financial condition is a result of the effect of the global downturn on the economic environment in Kazakhstan. Various resulting factors, including the Tenge devaluation, a fall in real estate prices, a severe lack of liquidity and a further deterioration of the financial position of corporates and financial institutions in Kazakhstan, have led to a partial impairment of the Company’s credit portfolio and have resulted in losses related to FX and derivatives transactions. The suspension of payments will ensure a fair treatment of all creditors and give the Company time to assess its situation and present a restructuring plan that is both fair to investors and will ensure the ongoing financial health of the Company. Any restructuring proposal is expected to apply to both the international and the domestic obligations of the Company.

Astana Finance intends to continue its operational activities as before and to service certain obligations that are essential for this purpose. To accurately assess the impact of the recent deterioration, the Company will ask auditors to prepare a financial due diligence report covering the first three months of 2009. It also intends to publish its audited consolidated full year results for 2008 in the near future. The Company expects the financial and legal due diligence to be completed within twelve weeks of the date of this press release. The results of the due diligence process will form the basis of the restructuring proposal to be presented to the regulator, creditors and investors.

To assist in developing a restructuring proposal, Astana Finance has engaged J.P. Morgan Securities Ltd. as restructuring adviser, Clifford Chance LLP as international legal counsel and First Legal as Kazakh legal counsel. The Company’s regulator in Kazakhstan, the Financial Market Supervision Agency, is fully aware of Astana Finance’s situation. Furthermore, Astana Finance has an ongoing dialogue with JSC National Welfare Fund "Samruk-Kazyna" to assess the availability of any financial support to the Company and to coordinate further measures to strengthen the Company’s financial situation. Creditors who would like further information are invited to contact: Mr Daurzhan Augambay, T: +7.7172.591082, E: d_augambay@af.kz; Ms Zhanara Iskhakova, T: +7.727. 311 06 42 (ext 108), E: zh_iskhakova@firstlegal.kz. Yours sincerely, JSC Astana Finance and Astana Finance B.V.