Deal price will amount to USD 576 mln.

The Bank of Cyprus signed the agreement for purchase of 80% of stakes of UNIASTRUM BANK, the ninth top Russian bank for the size of network of branches, the deal amounting to USD 576 mln.

The two key current shareholders of UNIASTRUM BANK George Piskov and Gagik Zakarian will have a 10%-stake each. George Piskov and Gagik Zakarian remain the heads of UNIASTRUM BANK and retain the positions of the Chairman of the Board of Directors and President of the Bank, respectively.

The deal will be closed after all respective permissions of the regulation bodies of the Russian Federation and Republic of Cyprus in compliance with the current law standards have been obtained. Simultaneously with the deal completion, the bank’s capital will be increased by USD 50 mln.

As George Piskov and Gagik Zakarian stated in their joint communiqué, UNIASTRUM BANK is expecting a synergetic effect from combination of key merits of the two organizations. UNIASTRUM BANK can offer the banking experience in the Russian market exceeding 14 years and one of the biggest networks of branches in Russia. The Bank of Cyprus can offer state-of-the-art IT technologies, global banking experience and significant assets of the company. UNIASTRUM BANK will keep developing its traditional business lines: retail banking and, first of all, car loans and card business, and corporate banking – banking to corporate customers and lending to small businesses. The bank will also keep developing cash management services to individual customers including money transfers in the UNISTREAM system.

The Bank of Cyprus Group was founded in 1899, and today it is the leading Cypriot banking and financial services group. At present the Group operates through a total of 301 banking outlets, 143 of which are located in Cyprus, 135 in Greece, 6 in Great Britain, 11 in Australia, 2 in Romania, 1 in Russia, and 1 in the - в России и 1 in the Channel Islands. The Group also has representation in Russia, Canada and Republic of South Africa. Moody's 2007 credit ratings for the Group: long-term - А2, short-term - Р-1. The Group assets amount to EUR 31 bln., and market capitalization as of the end of 2007: EUR 7.1 bln.

For additional information
please contact Ms. Olga Kurganova,
tel. +7 (495) 783 58 10 ext. 1066
kurganova@uniastrum.com