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JSC Bank of Georgia (BGEO)

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Monday 12 February, 2007

JSC Bank of Georgia

Issue of Debt

Bank of Georgia
                  

     Bank of Georgia Announces The Successful Closing Of Its Debut Eurobond
                                   Transaction

Bank of Georgia (LSE: BGEO; GSE: GEB), a leading universal bank in Georgia,
announced today the successful closing of its US$200 million debut Regulation S
5-year senior unsecured Eurobond transaction, the first international bond
offering from Georgia. The Eurobond was issued at par and carries a 9% coupon
rate paid semi-annually. The issuing vehicle, BG Finance B.V., has issued the
bonds for the sole purpose of financing a loan to JSC Bank of Georgia. Merrill
Lynch acted as Sole Lead Manager and Sole Bookrunner on the transaction. White &
Case and Baker & McKenzie acted as legal advisors to Merrill Lynch and Bank of
Georgia, respectively.

The issue was rated 'B+'/Stable by S&P, 'Ba2'/Stable by Moody's and 'B'/Stable
by Fitch.

'We are delighted to have successfully completed this landmark transaction. Over
100 institutional investors from the UK, Switzerland, Italy, Greece, other
European countries and Asia placed bids. As a result, we were able to increase
the transaction size from US$150 million to US$200 million. In the absence of a
sovereign benchmark, I am pleased that we have facilitated the road to debt
capital markets for other Georgian issuers. I would like to thank all of my
colleagues and our world-class advisory team for their outstanding work on this
deal', commented Lado Gurgenidze, Chairman of the Supervisory Board.

About Bank of Georgia

Bank of Georgia, a leading universal Georgian bank, is the largest bank by
assets, loans and equity in the country. The bank has 99 branches and over
400,000 retail clients. 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, BCI, as well as asset & wealth management
services.

Bank of Georgia has 'B+/B' rating with a stable outlook from Standard & Poor's;
'B3/NP' (FC) and 'Baa3/P-3' (LC) ratings with a stable outlook from Moody's; and
a 'B/B' credit rating with a stable outlook from FitchRatings.

For further information, please visit www.bog.ge/ir or contact:

-0-
*T
Lado Gurgenidze       Irakli Gilauri      Macca Ekizashvili    Thea Jokhadze
Chairman of the       Chief Executive     Head of Investor     Head of Funding
Supervisory Board      Officer             Relations
+995 32 444 103       +995 32 444 109     +995 32 444 256      +995 32 444 192
lgurgenidze@bog.ge    igilauri@bog.ge     ir@bog.ge            tjokhadze@bog.ge
*T

This press release is not an offer of securities for sale in the United States.
The securities referred to herein have not been and will not be registered under
the US Securities Act of 1933, as amended (the 'Securities Act'), and may not be
offered or sold in the United States or to US persons unless the securities are
registered under the Securities Act or an exemption from the registration
requirements of the Securities Act is available. No public offering of the
securities will be made in the United States. Other selling restrictions are
applicable.