National Mercantile Exchange Increases Its Authorized Capital 2.25 Times

As a result of placing additional common shares, the National Mercantile Exchange increased its authorized capital from 1.4 million rubles to 3.15 million rubles. The report on the results of the additional issue of securities was registered by the regional branch of the RF Federal Securities Commission in Central Federal District 18 November 2004 (state registration number 1-01-38050-H-002D). Appropriate changes in the NAMEX Charter were registered by IMNS #3 of Moscow 6 December 2004.

The new shareholders of the NAMEX are Razgulyai Grain Company, the St.Petersburg Currency Exchange and the Rostov Currency and Stock Exchange. The rest of the shares were distributed among the existing shareholders in compliance with the decision of 18 May 2004 general meeting of shareholders of the NAMEX.

Background information:

The National Mercantile Exchange was established in July 2002. Among its shareholders are the Russian Grain Association, the Association of Sugar Producres of Russia, APK OGO, the Moscow Interbank Currency Exchange, the Nizhni Novgorod Currency and Stock Exchange, the Samara Interbank Currency Exchange, the Siberian Interbank Currency Exchange, the Urals Regional Currency Exchange and other organizations. The NAMEX holds the License of the Commission for Commodity Exchanges at the RF Antimonopoly Ministry to organize exchange trade in different commodity sections and the standard contracts section. In 2002-2003, the NAMEX assisted the Central Russian Universal Exchange (CRUEX) in organizing state procurement interventions in the grain market. In 2004, the NAMEX and the CRUEX acted as authorized exchanges in conducting state commodity interventions in the grain market. On November 26, 2004, the NAMEX was announced winner of the open contest held by the Federal Agency for Agriculture to select exchanges which would conduct state procurement interventions with the aim of regulating the market of farm products and food in 2004.