Georgia is a country located in the Caucasus region bordering the Black Sea. It has a population of 4.5 million people and its capital and largest city is Tbilisi. Georgia's economy has grown significantly in recent years, with GDP growth averaging over 17% from 2003-2008, though it declined to -4% in 2009 due to the global financial crisis. The banking sector emerged from the crisis in reasonably good condition and loan impairments have stabilized, though future growth is expected to be less risky than pre-crisis levels. Georgia has implemented pro-business reforms and offers attractive tax incentives to foreign investors.

1. Georgia: Country Profile Number of Inhabitants: More than Estonia + Latvia, Lithuania, Croatia, Slovenia + Montenegro, Bosnia & Hertsogovina, Wales + Northern Ireland, Republic of Ireland, New Zealand, Norway (same population);

2. Square Meters: 69,700 sq km – bigger than Netherlands, Slovakia, Denmark, Belgium, Switzerland, Estonia, Latvia, Lithuania, Slovenia, Wales + Northern Ireland, Macedonia;

3. Boarders: Black Sea, Russia, Azerbaijan, Armenia, Turkey

4. Ethnic Groups: Georgians (84%), Azeri (6.5%), Armenians (5.7%), Others (3.8%);

5. Religions: Orthodox Christians - 84%, Muslims – 10%, Armenian Gregorian – 4%, Catholics – 0.8%, other – 0.8, none – 0.4%;

6. Language: Georgian (official) – 71%, Russian - 9%, Armenian – 7%, Azeri – 6%, other – 7%;Georgia: Country Profile Cont.Area:69,700 sq kmPopulation:4.5 mlnLife expectancy:74 yearsOfficial language:GeorgianLiteracy:100%Capital:TbilisiCurrency (code):Lari (GEL)GDP 2009E:US$12.3 blnGDP real growth rate 2009E:-4.0%GDP CAGR „03-‟0817.1%GDP per capita 2009E (PPP):US$4,747Georgia is the only country moving from negativeInflation rate (e-o-p) 2009:3.0%to stable outlook in the Fitch Ratings in 2009External debt to GDP 2009E:27.5%20032008Nominal GDP (GEL mln)B+/Stable in Aug ‘098,56419,070B+/Negative in Aug ‘08GDP per capita (GEL)1,9724,351BB-/Stable in Jul ‘07Total budget revenues (mln GEL) 1,3685,854Source: Government of Georgia

7. Georgia: Economy back on track

8. Georgia: Investor Support

9. Georgia: Economic Projects Energy: Black sea regional transmission line, HPP projects, underground Gas storage facility project Free Industrial Zones (FIZ): Poti FIZ, Kutaisi FIZ Railway upgrade project, Tbilisi bypass project Key high way reconstruction projects Municipal investment and reconstruction programs

11. Georgia: One of the Best Places for Doing Business

12. Special Liberal Taxation Regimes for: International Financial Company Free Industrial Zone Free Warehouse CompanyFree trade regimes being negotiated with EU and USA Liberty act passed on no policy drift in the futureMega infrastructure projects planned: new airports, re-equipment of railway, new industrial port on the Black SeaFundamentals of economy remain strong compared to peers Georgia: Government Policy and Liberty Act

13. Georgian Banking Sector Overview

14. Robust Banking System

15. Georgian Banking Market Share Breakdown as of December 31, 2010

16. Georgian Banking Sector OverviewBalance Sheet Financial Data of Commercial Banks Operating in Georgia in thousand GEL as of December 31, 2010

17. Georgian Banking Sector OverviewEntrant of Foreign Investments in Georgian Banking Sector

18. Summery on Georgian banking industry Fitch: Future Georgian banking sector Development should be Less High-risk than Pre-Crisis Growth (Press release of July 14th 2010)...the system has emerged from global crisis and domestic downturn in a reasonably good condition Loan impairment peak (2009) has stabilized in 2010 and has reduced, due to effective work outs performed by the top banks Industry to experience not an aggressive lending, and balanced funding structure Due to limited level of domestic funding, in the long term the banks that are able to balance between local (retail) and international (institutional) funding, will ultimately benefit Profitability of the sector has improved, interest margin remains very attractive