PPF Investments Group ready to contribute to Ingosstrakh’s future development

Oct 15, 2007

PPF Beta Ltd., an investment corporation managed by PPF Investments – an international private equity group – has completed via its Cyprusbased investment vehicle Durbe Limited the acquisition of a structure involving Russian companies Vega, Novyi Kapital and Investizionnaya Iniziativa that in aggregate own 38,46% of the shares in Ingosstrakh, one of the largest Russian insurance companies. The transaction has been approved by the Russian Federal Antimonopoly Service.

PPF Investments Group is pleased to announce that positive negotiations are in place with Generali Worldwide Insurance Company Ltd., which may lead the latter to become one of the key investors acquiring a 49% shareholding in PPF Beta Ltd. This would represent an investment in line with Generali's 2007-2009 strategic plan focusing on a market which constitutes a natural and important next development step for Generali Group activities in the CEE region.

Ingosstrakh is recognized as one of the leading insurers operating in Russia with a very strong established brand name in the market. This transaction is therefore in line with the PPF Investments Group’s strategy to strengthen its position in rapidly developing markets by focusing on high quality, well managed assets that offer opportunities for further profitable growth.

As a 38,46% shareholder, the above mentioned companies have officially and expressly rejected a recent proposal to increase the registered capital of Ingosstrakh due to a lack of procedural transparency and serious concerns regarding the legitimacy and legality of the process.

Tomáš Brzobohatý, Chairman of the Board of Directors, PPF Investments Ltd., said: ”As a responsible shareholder we look forward to working closely with Ingosstrakh’s shareholders and management in our joint efforts to further develop its business activities and to ensure its continuing success. We are also open to further discussions with Ingosstrakh’s fellow shareholders regarding our future participation in a duly authorized capital increase in accordance with legal requirements and customary international market standards, based on mutually advantageous interests.”

Notes for editors:

PPF Investments is an independent, Jersey-based international private equity group with a focus on transitional economies, such as those found in Central and Eastern Europe and Asia. PPFI’s investment strategy is to focus on the fundamentals: sound business & corporate strategy, prudent management, and optimal capital structure. PPF Investments has the right to commercially use the PPF trademark, brand name of the prominent international financial group - PPF Group. However, PPF Investments should not be confused with PPF Group since these are two independent groups in terms of assets, management, shareholders and business activities.

Contact for media:

Jan Piskacek, Mather Public Relation

jan.piskacek@mather.cz