Due to the weakening Rouble, Egidaco Investments PLC, the Parent Company of TCS Bank, has breached a financial covenant

Due to the weakening Rouble, Egidaco Investments PLC, the Parent Company of TCS
Bank, has breached a financial covenant

Egidaco Investments PLC (“Tinkoff”), the parent company of  ‘Tinkoff. Credit
Systems' Bank (TCS Bank), announced today that it has breached a financial
covenant as set out in the Terms and Conditions of the €70m Eurobond.  The
financial covenant fixes the minimum levels for equity and equity plus
subordinated debt and the interim report for 4Q 2008 shows that the financial
covenant has been breached due to a sharp decline in the Rouble rate against the
US Dollar. The covenant is denominated in US Dollars.  

According to the Terms and Conditions of the Bonds, following a report of a
breach of this covenant, the Company has a cure period of 30 banking days
(starting from the date of the relevant financial report) within which to remedy
the breach.  Tinkoff has been working hard with the relevant parties to find a
durable solution to this problem and to design a proposal that will be
satisfactory to Bondholders.  In the near future, Bondholders will receive a
communication from the Company containing a commercial proposal and information
on a voting procedure among Bondholders that will be called to resolve this
matter in early March. 

TCS Bank is Russia's first specialised credit card bank and is fully licensed by
the Central Bank of Russia.  TCS Bank is a well-managed, liquid and since
October 2008 a cash flow positive company; it currently has over 320,000 credit
cards issued, of which 264,000 have been activated.  This gives TCS Bank a
portfolio with a gross-yield consistently over 65-70%; at year-end 2008 the
portfolio was over 4.8 bn Roubles corresponding to approximately 2.5% of the
Russian credit card market. TCS has switched from growth mode to a
‘steady-state' regime until further funding can be secured.  Due to the main
strategy of TCS Bank and the conservative approach that has been adopted, it is
not subject to many of the risks faced by its competitors.  

Egidaco Investments PLC 

For additional information 

Oliver Hughes, President
tel: +7 495 648 1000            
e-mail: o.hughes@tcsbank.ru

Ilya Pisemsky, CFO
tel: +7 495 648-1000
e-mail: i.pisemsky@tcsbank.ru