Issue of Debt

Bank of Georgia
                  

JSC Bank of Georgia completes a US$30 million subordinated loan transaction with
                                   FMO and DEG

JSC Bank of Georgia (LSE: BGEO GSE: GEB), the leading Georgian universal bank
announced, today that it has completed a US$30 million 10-year subordinated loan
transaction (the 'Loan') from Nederlandse Financierings-Maastchappij voor
Ontwikkelingslanden N.V ('FMO'), the Dutch development bank, and Deutsche
Investitions- und Entwicklungsgesellschaft mbH ('DEG'), the German development
bank. The Loan carries interest rate of 11.33%. According to the terms of the
Loan agreement, Bank of Georgia has an option to prepay the loan after five
years with the consent of the National Bank of Georgia.

'I am very pleased to announce the completion of this important transaction,
which demonstrates our ability to attract longer tenor non-deposit financing the
current difficult market conditions notwithstanding. This loan will strengthen
our Tier II capital and support further growth of our banking business. This is
the second transaction we have successfully completed with FMO over the last 18
months. I am very pleased to see our deepened cooperation with FMO and renewed
cooperation with DEG,' noted Nicholas Enukidze, Chairman of the Supervisory
Board of Bank of Georgia.

'We are happy to have concluded this new facility with Bank of Georgia. We are
convinced that the main business lines of Bank of Georgia, consumer credit and
SME-lending, are vital parts of the country's financial infrastructure and by
giving a subordinated loan we support the growth in those business lines.
Furthermore we encourage the entrepreneurial spirit within Bank of Georgia by
indirectly providing capital for the bank's growth strategy in Ukraine and
Belarus,' commented Huub Cornelissen, Director Europe and Central Asia, FMO.

'We are proud to support Bank of Georgia, one of our longtime partners, which is
distinguished by exceptional regional knowledge and a proven track record. As
one of the bank's focus activities is financing of small and medium-sized
enterprises, the project renders a contribution to securing jobs in this field.
Furthermore, DEG supports Bank of Georgia in its rapid business development in
order to improve the availability of financing to trade and industry and the
general population and thereby also enhance the growth potential of Georgia',
noted Andreas Zeisler, Head of Financial Institutions, DEG.

About Bank of Georgia

Bank of Georgia, the leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans, deposits and equity in
Georgia, with 33.7% market share by total assets (all data according to the NBG
as of March 31, 2008). The major component of the Galt & Taggart Index, the bank
has 131 branches and over 770,000 retail and more than 120,000 corporate current
accounts. The bank offers a full range of retail banking and corporate and
investment banking services to its customers across Georgia. The bank also
provides a wide range of corporate and retail insurance products through its
wholly-owned subsidiary, Aldagi BCI, as well as asset & wealth management
services.

Bank of Georgia has, as of the date hereof, the following credit ratings:

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Standard &      'B+/B'                    Stable
 Poor's
FitchRatings    'B+/B'                    Stable
Moody's         'B3/NP' (FC) & 'Ba1/NP'
                 (LC)
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For further information, please visit www.bog.ge/ir or contact:

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Nicholas Enukidze                  Irakli Gilauri                    Macca Ekizashvili
Chairman of the Supervisory Board  Chief Executive Officer           Head of Investor Relations
[phone]                    [phone]                   [phone]
[e-mail]                   [e-mail]                   [e-mail]
*T

This news report is presented for general informational purposes only and should
not be construed as an offer to sell or the solicitation of an offer to buy any
securities.