The External Financing Program directed at the establishment of systematic liquid market of obligations of the Company and its public credit history, for being internationally credit rated, for the decrease of the expenditure of financing with simultaneous extension of the duration of borrowing and, finally, - provisions for the financial independence of the company, increase of capitalization and attractiveness of the company for portfolio investors was adopted by the Board of Directors of the JSC "IAIA" in the fall of the year 2001. Conditions for the Company to comply to the requirements for the emission of debentures in the external stock market should be created by the time of completion of the Program implementation.

Phase 1. 2001 through the first half of 2002.

At this stage, the Company would issue borrowing bills as per preliminarily approved parameters. The allocation of bills would occur among institutional investors under inter-mediation of authorized companies - professional securities market operators.

The objective of the Phase - promotion of the image of the JSC "IAIA" as an open company; in the internal market - creation of public credit history.

The purposes of the Phase - reformation of the balance, formation of liquid market for the bills of the company, listing at one of the major Russian stock exchanges in the Bonds section, emission of the first issue of the bonds, preparation for the emission of the second issue of the bonds into organized stock market.

Phase 2. the second half of the year 2002.

The objective of the Phase - Decrease of costs and extension of the duration of borrowing in the internal market.

The purposes of the Phase - Maintaining of the liquidity of the bills market of the Company, expansion of the range of real investors. Emission of a medium-term bond appropriations. Attainment of auditing judgement from an internationally recognized audit company.

Phase 3. Year 2003.

The objective of the Phase - Preparation for the emergence into the external market of debentures.

The purposes of the Phase - Maintenance of the internal market. Attainment of a credit rating. Listing at one of the major Russian stock exchanges in the Stock section.

Phase 4. Year 2004.

The objective of the Phase - Attraction of external financing, growth of the credit rating, increase in the capitalization of the Company and its appeal for portfolio investors, preparation for the emission of ADR (GDR).

The purposes of the Phase - Emergence into the international finance market (Emission of the Euro Loan), preparation for the emission of ADR (GDR).

For today, Phase 1 of the Program of External Financing is, on the whole, completed. The JSC "IAIA" managed to achieve the following objectives:

• The bill program of the Company is being successfully implemented

  - The bills of the JSC "IAIA" are listed among the ten most liquid bills
  - There is established curve of profitability for the IAIA bills
  - There is a growing number of counteragents for redemption (having limited credit risks at the JSC "IAIA")
  - The spread of bill profitability to bill index in the secondary market is decreasing

• On April 1, the first bonds loan was issued
• By the results of the two first months of circulation of the bonds in the organized market, the bonds of the JSC "IAIA" were listed among the ten most traded
• A Code of Corporate Behavior was adopted at the scheduled meeting of the shareholders, dividend policy for the period through the year 2005 was approved.

At present, the Company is converting to the implementation of the Phase 2 of the Program of External Financing.

The primary tactical purposes of Phase 2:

• Creation of the institution of market-makers in the bill market
• Changes in the procedure of the primary emission of bill loans with attraction of a broad range of market operators
• Organization of a tender among potential underwriters of the second bond loan
• Emission of the second bond loan
• Undergoing of auditing procedure under international standards