Updated April 2, 2008

   UFG Asset Management managing company

intends to attract the strategic investor to purchase 40% stocks with redemption right of the rest 60%. The source was quoted as saying that Deutsche Bank had been chosen out of several companies with which talks had been held.

   As it became known, UFG Asset Management managing company would declare about the strategic investor attraction by the end of April.

About this told two participants of the collective investments market.

The head of the large investment bank, aware of the transaction, asserts that Deutsche Bank becomes UFG Asset Management partner. UFG Asset Management main owner Boris Fedorov did not refute this information. "We did not sign any documents yet. But I can say that when a company already has more than 20 000 clients, it needs a strategic partner and I have been thinking about this a lot", Mr. Fedorov declared. Thus, he refused to name the attracted strategic investor, and marked that negotiations had been held with several claimants.

   UFG Asset Management managing company is included in the analogous group of companies.

It was established in 1996 and is one of the oldest Russian managing companies.

According to the data of Kommersant-Money magazine, as of January, 1, 2008 the company occupied the 26th place in rating by the assets sum in the management (RUR 11,4 billion). The company manages five open mutual funds.

   "The strategic investor attraction to UFG Asset Management will pass by the scheme, which has been used in the transaction of the United Financial Group purchase by Deutsche Bank in 2004-2006", the source in the company asserts. It is assumed that the current transaction would comprise two stages. Deutsche Bank would foremost purchase 40% of the managing company.

However, it has the redemption right of the rest 60% in future. Mr. Fedorov has indirectly confirmed this scheme.

"It does not go about the complete company sale yet. In the nearest 1,5-2 years we will confine oneself to strategic partnership", he declared. In Deutsche Bank refused to comment.

   In the managers' opinion, the transaction is favorable for both parties. "Deutsche Bank did not manage to develop its company by the assets' management until now.

And, obviously, there was taken the decision to enter this market in terms of strategy", says the chairman of the board of Renaissance – Investments' Management managing company Andrey Movchan.

The Russian collective investments market is ra ther poorly developed,

therefore the managing companies cost cheap.

But they also have the enormous potential, adds director general of ROSNO Alliance – Assets' Management Oleg Mazurov.

   In its turn, UFG Asset Management needs strategic investor attraction for its further development.

"The market becomes harder and harder, and one should spend more and more m oney on the marketing. And Deutsche Bank is the perfect floor for distribution", Mr. Movchan reasons. According to his opinion, many companies would give 40% for a good floor for distribution.

   The experts' estimations of transaction differ.

In Mr. Movchan opinion, the company with stable assets, as UFG Asset Management, can be estimated at 10-15% from the total cost of assets. Thus, Deutsche Bank can pay RUR 1,1-1,7 billion for the whole managing company. The estimations of Mr.

Mazurov are rather modest. He considers that UFG Asset Management costs 2-5% from its assets, i.e. RUR 228-570 million.