PPF GROUP and NOMOS-BANK to form strategic partnership to create universal banking group in Russia

Moscow and Amsterdam, May 17, 2007. PPF Group N. V. and shareholders of NOMOS-BANK today announce that they have signed a Memorandum of Understanding with the goal of creating a strategic partnership. In connection with the negotiation, the planned IPO of NOMOS-BANK has been suspended.

PPF Group and shareholders of the NOMOS-BANK are planning to join forces to create one of the largest universal banking groups in. Both Home Credit and Finance Bank (“HCFB”) and NOMOS-BANK (“Nomos”) will contribute to a new holding company, mutually owned by the PPF Group and the Nomos shareholders. The banks will continue to operate their businesses separately and under their current brand names. A full merger is not being discussed at present. The stakes in the new holding company will be determined in accordance with the agreed principles and on the basis of the audited figures of both banks for the first half 2007.

One of the important conditions of the agreed principles of the deal is preservation of the stability of the management teams, as well as the commercial policies of both banks.

Both partners are convinced that this will be a perfect strategic and organizational fit for future growth — the partnership combines NOMOS-BANK’s expertise and strength in corporate banking and structured finance with HCFB’s position as a leading provider of consumer finance in.

It is expected that the strategic partnership will be concluded in the fourth quarter of the year. The transaction is subject to the approval of the relevant regulatory and anti trust authorities.

Commenting on the agreement, Jiri Smejc, shareholder of PPF Group, said:

“NOMOS-BANK, like PPF Group, has a proven track record of entrepreneurial spirit and value creation in and we look forward to working closely together and leveraging joint synergies across the region. By joining forces we can create a universal banking group and benefit from growth opportunities in banking and consumer finance in.”

Nickolai Dobrinov, NOMOS-BANK’s Chairman of the Board, added:

“The establishment of a strategic partnership with PPF Group will provide stability and dynamic development for the good of our clients. Together with PPF Group we are totally committed to ensuring the highest standards of service and relationship management for our corporate customers, retail clients and distribution partners. The partnership of the two banks will allow us to create one of the largest universal banking groups in Russia, with net asset value in excess of $6 billion. Our strategy will be based on a complementary partnership which will allow us to combine HCFB’s position as a leading provider of consumer finance and NOMOS-BANK’s expertise and strength in corporate banking”.

About PPF Group and Home Credit Group

PPF Group is an international financial group of companies which has interests in insurance and consumer finance, and provides complex asset management services. During its 16 years in business, PPF Group has become a leading international financial investor, managing assets of over USD 10 billion as at the end of 2006. PPF Group has its corporate ownership and decision making structure based in the. The group’s key holding company that defines strategic decisions regarding the entire group’s activities is the Amsterdam-based PPF Group N.V.

Home Credit & Finance Bank

(Moody’s Ba3/NP/D-, S&P B+/B) is a member of the Home Credit Group. The companies of the Home Credit Group have been operating in the Central and Eastern European consumer loan markets since 1997 and HCFB has been operating in the Russian consumer loan market since 2002. The Bank reported a net profit of RUR 699 million for the year-ended 31st December, 2006 — an increase of 127% in the prior year period. With over 11 million clients across the, HCFB provides a range of consumer finance products in the point of sale, cash loan and credit card segments. Today HCFB is the second largest provider of point-of-sale (“POS”) consumer loans, as well as revolving credit cards in.

About NOMOS-BANK

NOMOS-BANK (Moody’s Ba3/NP/D-, Fitch B+/B/D) was founded in the year 1993 and since then has evolved into one of Russia’s leading private financial institutions. Today Nomos stands among the most active and rapidly developing commercial banks in Russia demonstrating stable dynamics of asset and equity growth. NOMOS-BANK is focusing primarily on corporate banking, providing a wide range of services, including traditional banking products, investment banking services, structured finance and leasing services, for 27 000 corporate customers. At the end of 2006 the Bank’s IFRS assets were estimated at RUR 108.8 billion (approximately US$ 4.13 billion), while its equity amounted to roughly RUR 15.2 billion (approximately US$ 579 million). Today NOMOS-BANK is included in the list of TOP-1000 world banks, published annually by “The Banker” magazine, ranking 659th among the largest banks of the world and 16th among the top banks of the Central and Eastern Europe.