Updated June 5, 2008

   By IFRS (International Financing Reporting Standards) Fesco transport group net income in 2007 totaled $103 million, and that is by 58% more as compared to the analogical index last year. Consolidated proceeds grew by 51% to $872 million, EBITDA – by 138%, to $267 million.

   In August Fesco plans to hold another additional emission of stocks. Parameters will be announced at the end of June or early July. Both current Fesco stockholders and institutional investors plan to take part in additional emission.

   "Las year driver of financial indices growth was the purchase of JSC Commercial Port of Vladivostok and National Container Company", as supposes Otkritie Brokerage House analyst Kirill Tachennikov. "In 2007 stake of marine transportations went by 60% down, though in 2006 it was 90%. Port and terminal services are at the forefront by profitability. Facilities attraction by means of additional emission saves the company from debt load increase and that is clearly a plus for the company, but capital watering will not provide with fundamental factors for capitalization growth and will result in decrease of stocks’ market value".

   UniCredit Aton company analyst Elena Myazina considers that reissued transport company stocks were quite attractive and would find the buyer. Mikhail Sayno from BrokerCreditService consents with her. "Fesco operating indices’ growth outstrips industry average rates, as the group develops the most prospective activity types – container transportations and terminal services. Transport assets are currently quite expensive, and investment projects in the container transportations area, as well as port infrastructure, promise high return of capital employed. Therefore, facilities attracted from additional emission will outweigh a negative effect related to stockholders’ stake decrease in Fesco capital".

   Fesco transport group, established on the basis of Far Eastern Shipping Company, is the leading intermodal operator specializing in marine, railway and truck transportations, as well as port services. In 2007 container operations’ total volume of all companies incorporated in the group exceeded 2 million TEU. Fesco transport group incorporates the range of large industry companies, such as Far Eastern Shipping Company, Transgarant, National Container Company, Commercial Port of Vladivostok. Fesco group market capitalization is $2,7 billion.