Khanty-Mansiysk – A RUR1bn issue of UTair Finance bonds was placed on the Moscow Interbank Currency Exchange on November 24, 2004.

The free subscription placement was made on MICEX in the form of a tender on setting the bonds’ first coupon rate. In the course of the placement, 46 applications from investors were submitted. The total volume of applications submitted was RUR1.12268bn with the first annual coupon rate offered between 12 percent and 13.5 percent.

The first coupon rate was set by the issuer at 13 percent (RUR64.82 per bond), the second coupon rate is equal to the first coupon; the third and the fourth coupon rates shall be defined by the issuer.

The effective bond yield on an annual offer is 13.42 percent.

The entire bond issue was sold at a morning trading session on the first day of the placement.

The issue of the documentary bearer bonds with the compulsory centralized storing of UTair Finance was registered by the Russian Federal Securities Commission on April 29, 2004 (state registration number 4-01-36059-R); the maturity is two years; the bonds have four six-month coupons. The bonds are secured by UTair Aviation JSC’s guarantee. Moreover, the issuer has published a public irrevocable offer to redeem the bonds in one year after the date of the beginning of placement at the price of 100 percent of their nominal price.

The organizer of the issue is Vneshtorgbank.

The co-organizers are Nomos-Bank, BK Region and Khanty-Mansi Bank.

Further information on the structure of the loan and the financial results of UTair Aviation JSC can be found in documents related to the issue and in the memorandum of the loan available on the Internet sites of the issuer (www.utair.ru) and the organizers (www.vtb.ru, www.nomos.ru, www.regnm.ru and www.khmb.ru).