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JSC Bank of Georgia (BGEO)

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Monday 02 July, 2007

JSC Bank of Georgia

Issue of Debt

Bank of Georgia
                  

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                                                                          2 July, 2007
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          Georgian Leasing Company Signs a US$7.5 Million Loan Facility
                           with WorldBusiness Capital

JSC Bank of Georgia (LSE:BGEO) (GSE:GEB), the leading Georgian universal bank,
announced today that Georgian Leasing Company, its wholly-owned subsidiary and a
leading leasing provider in Georgia, and WorldBusiness Capital Inc. (WBC) have
signed a loan agreement for a US$7.5 million facility to finance its small and
medium enterprise (SME) lease portfolio. This long-term facility is supported by
the U.S. Oversees Private Investment Corporation (OPIC).

'I am pleased that WBC and OPIC have once again come together in extending a
US$7.5 million facility, this time for the growth of SME equipment leasing by
the Georgian Leasing Company, having financed last year Bank of Georgia's
growing residential mortgage financing needs. This facility, thanks to its
long-term tenor, will dramatically enhance the company's leasing capability. We
greatly appreciate WBC's and OPIC's assistance for our growth', commented Lado
Gurgenidze, Chairman of the Supervisory Board of Bank of Georgia.

WorldBusiness Capital has successfully closed loans in emerging markets
throughout the world. In 2003 OPIC entered into a cooperative agreement with
WorldBusiness Capital to expand support for SMEs investing overseas and enhance
the activities of OPIC's Small Business Center. 'We welcome the opportunity to
support the growth of the leading equipment leasing company in Georgia. Georgian
Leasing Company's focus on the small and medium-sized enterprise sector was a
key factor in our decision to extend long-term financing with the support of
OPIC's small business programs,' said Robert Monyak, Executive Vice President
and Chief Lending Officer at WBC.

About Georgian Leasing Company

Georgian Leasing Company is a leading leasing company in Georgia with about 35%
market share. The company extends leases to construction, light and heavy
industries, printing, transportation, service, trade, telecommunication and high
tech business sector in all regions of Georgia and abroad. Georgian Leasing
Company was founded in 2001 and was acquired by Bank of Georgia in 2005. As of
31 March 2007, the company had GEL 10.1 million in assets and GEL 0.5 million in
equity.

About Bank of Georgia

Bank of Georgia, a leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans, deposits and equity in
Georgia, with 33% market share by total assets (all data according to the NBG as
of March 31 2007). The major component of the Galt & Taggart Index, the bank has
103 branches and over 500,000 retail and more than 50,000 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, BCI, as well as asset & wealth management services.

About Oversees Private Investment Cooperation (OPIC)

OPIC was established as an agency of the U.S. government in 1971. It helps U.S.
businesses invest overseas, fosters economic development in new and emerging
markets, complements the private sector in managing risks associated with
foreign direct investment, and supports U.S. foreign policy. Because OPIC
charges market-based fees for its products, it operates on a self-sustaining
basis at no net cost to taxpayers.

OPIC's political risk insurance and financing help U.S. businesses of all sizes
invest in more than 150 emerging markets and developing nations worldwide. Over
the agency's 35-year history, OPIC has supported $164 billion worth of
investments that have helped developing countries to generate more than 732,000
host-country jobs and $13 billion in host-government revenues. OPIC projects
have also generated $69 billion in U.S. exports and supported more than 264,000
American jobs.

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

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Standard & Poor's   'B+/B'                          Stable
Moody's             'B3/NP' (FC) & 'Ba1/P-3' (LC)   Stable
Fitch Ratings       'B/B'                           Stable
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For further information, please visit www.bog.ge/ir or contact:

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Lado Gurgenidze                   Irakli Gilauri          Thea Jokhadze                Macca Ekizashvili
Chairman of the Supervisory Board Chief Executive Officer Head of Debt Capital Markets Head of Investor Relations
+995 32 444 103                   +995 32 444 109         +995 32 444 192              +995 32 444 256
lgurgenidze@bog.ge                igilauri@bog.ge         tjokhadze@bog.ge             ir@bog.ge
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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. Certain statements in this news report are forward-looking
statements and, as such, are based on the managements current expectations and
are subject to uncertainty and changes in circumstances.