IS INVESTMENT 2007 QI Results & Performance

1. IS INVESTMENT 2007 QI Results & Performance

2. 2007 QI Results and Performance Mutual Funds Year Equity Bonds & Bills Derivatives • Source: ISE, Derivatives Market, Rank of Is Investment among brokerage firms in terms of volume • Is Investment is the investment arm of Is Bank and the leading investment banking institution in Turkey. The company covers a wide range of services including, brokerage and investment advisory, asset management, corporate finance, private equity and research • IS Investment is the outright leader in Turkish capital markets with 6.4% share in equities, 25% in derivatives, 13% the bond and bills, 21% in portfolio management Market Share (Ranking)in Turkish Capital Markets %(*)

3. Equity Market Solidify our leadership position in the ISE Equity Market • We cemented our leadership position in the equity market by increasing our market share from 6.3% to 6.4% • However, our trading volume declined to TRY 10,7 bn, down from TRY 11 bn due to contraction in the overall market • Recall that, 2006/QI was one of the strongest quarter in the ISE history in terms of trading volume

4. Bills & Bonds Market Recaptured leadership in the ISE Bills & BondsMarket • Is Investment recaptured leadership in the ISE bills &bonds market, and increased its market share to 14.8% from 13.1% a year ago (among the brokerage houses) • However, our trading volume declined to TRY 4.8 billion, down from TRY 7.5 billion due to contraction in the overall market volume

5. Derivatives Our daily trading volume in the Derivatives Market more than quadrupled on YoY basis • Our daily trading volume quadrupled to TRY 40 mn in the derivative market, although our market share declined to 17% • Upbeat momentum in the derivative market is expected to continue in the coming quarters

6. Mutual funds Parallel to the sector, we have experienced major redemptions from our mutual fund business • Our revenue from portfolio management declined in Q1 due to a contraction in assets under management parallel to the sector • We expect sharp recovery in portfolio management revenues starting from the second quarter (i) Assets under management recovered to $105 million, up from $83 million in the first quarter (ii) Is Portfolio Management will be consolidated to Is Investment’s results starting from QII/2007

7. Corporate Finance A major upswing in corporate finance income • Corporate finance revenues recorded 103% YoY growth in QI/07. • Retainer and success fees from increasing number of M&A deals boosted the fees on corporate finance operations • QI corporate finance revenues do not include revenues from Halkbank and Is Investment IPOs

8. Breakdown of Revenues

9. Breakdown of Revenues • Is Investment’s total revenues amounted to TRY 30.7 mn in QI/2007, down by 3.6% on YoY basis • Commission revenues remained below the target due to dismal fund commissions • Interest and trading revenues grew sharply from TRY 7.5 mn to TRY 10.8 mn due to rise in margin accounts • Other revenues contracted from TRY 17.7 mn in QI/06 to TRY 16.5 mn due to decline in arbitrage revenues • QII sets to be a much better period in terms of operating revenues

10. Breakdown of Commissions • Equity trading commissions displayed a weak performance on annual basis as 2006 Q1 was a very strong quarter. Growth performance will improve in the forthcoming quarters as we move from high base period to low base period. • Commissions on derivatives skyrocketed in 2007, reaching TRY 1.2 mn vs TRY 170K in QI/06 • Mutual funds and other commission revenues have been the laggards. Mutual fund commissions were lower compared to last year, due to strong redemptions experienced in the second half of 2006. • Commissions on corporate finance has been quite strong in Q1. In our view, this is only the tip of the iceberg as Halkbank IPO, the largest privatization offering in Turkish capital market, is finalised in the second quarter.

11. Breakdown of Commissions

12. Loans to Clients • Loans to clients almost tripled in a year period and reached TRY 57 mn as of the end of QI/07 • Interest income on margin accounts recorded TRY 129% YoY growth, reaching TRY 2.9 mn in the first quarter of the year. Outstanding Loans (TRY Million)

13. Other expenses Securities borrowing and other costs declined substantially on YoY basis

14. Operating Expenses • Operating costs recorded 22% rise on YoY basis • The first quarter cost structure includes several one-off expenses like communication and membership costs • Pre-paid one-off expenses, such as IPO costs, also elevated the operating costs in QI/07 • We will see a pick up in employee expenses in QII due to salary rises, yet it will be more than offset by the savings on other fronts.

15. Interest Expense • Short term interest expense was recorded TRY 2.86 mn in QI/07 vs. TRY 2.179 mn in QI/06 • We have excluded the ISE money market expense and FC losses from the short term interest expenses.

16. IS INVESTMENT SECURITIES www.isyatirim.com.tr www.isinvestment.com 16

17. The information in this report is prepared by “IS YATIRIM MENKUL DEGERLER A.S.” (İş Investment) and it is not to be construed as an offer or solicitation for the purchase or sale of any financial instrument or the provision of an offer to provide investment services. Information, opinions and comments contained in this material are not under the scope of investment advisory services. Investment advisory services are given according to the investment advisory contract, signed between the intermediary institutions, portfolio management companies, investment banks and the clients. Opinions and comments contained in this report reflect the personal views of the analysts who supplied them. The investments discussed or recommended in this report may involve significant risk, may be illiquid and may not be suitable for all investors. Therefore, making decisions with respect to the information in this reportcause inappropriate results. All prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this report is strictly prohibited. The information presented in this report has been obtained from sources believed to be reliable. Is Investment cannot be held responsible for any errors or omissions or for results obtained from the use of such information. Abbreviations and formulas used in the report: CB: Central Bank; MCap = Market Capitalization; P/E: Price/Earnings Ratio = Price/Earnings per share; P/BV: Price / Book Value = Price/Shareholders’ Equity per share 17