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JSC Bank of Georgia (BGEO)

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Friday 31 October, 2008

JSC Bank of Georgia

3rd Quarter Results

Bank of Georgia
                  
-0-
*T
1.41 GEL/US$ September 2008 period end
1.47 GEL/US$ 9 month 2008 average
1.41 GEL/US$ Q3 2008 average
1.66 GEL/US$ September 2007 period end
1.69 GEL/US$ September 2007 average
1.66 GEL/US$ Q3 2007 average
*T

 JSC BANK OF GEORGIA ANNOUNCES CONSOLIDATED Q3 2008 & YEAR-TO-DATE 2008 RESULTS

-0-
*T
Millions, unless otherwise noted                              Q3 2008                  Growth y-o-y
                                                                                                 (2)

Bank of Georgia (Consolidated, Unaudited,                 US$                     GEL
 IFRS-based(1))
Total Operating Income (Revenue)(3)                      61.1                    85.9            53%
Recurring Operating Costs                                35.3                    49.6            71%
Normalised Net Operating Income(4)                       25.8                    36.3            34%
Net Provision Expenses                                   73.4                   103.2          3259%
Net Income/(Loss)                                      (42.0)                  (59.0)            NMF
*T

-0-
*T
Millions, unless otherwise noted                           9 Months 2008               Growth y-o-y
                                                                                                 (2)

Bank of Georgia (Consolidated, Unaudited,                 US$                     GEL
 IFRS-based)
Total Operating Income (Revenue)(3)                     180.0                   252.9            69%
Recurring Operating Costs                               101.8                   143.0            81%
Normalised Net Operating Income(4)                       78.3                   110.0            56%
Net Provision Expenses                                   83.9                   117.8          1396%
Net Income/(Loss)                                         0.9                     1.3            NMF

Total Assets                                            2,245                   3,154            31%
Net Loans                                               1,374                   1,931            51%
Total Deposits                                            943                   1,325            17%
Tier 1 Capital Adequacy Ratio (BIS)(5)                                          24.7%             7%
Total Capital Adequacy Ratio (BIS)(6)                                           25.3%             8%
Tier 1 Capital Adequacy Ratio (NBG)                                             18.2%            30%
Total Capital Adequacy Ratio (NBG)                                              15.5%            -9%
*T

(1 )Except Provisions. Provisions represent management estimates.

(2) Compared to the same period in 2007; growth calculations based on GEL
values.

(3) Revenue includes Net Interest Income and Net Non-Interest Income.

(4) Normalised for Net Non-Recurring Costs.

(5) BIS Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end
divided by Total Risk Weighted Assets as of the same date, both calculated in
accordance with the requirements of Basel Accord I.

(6) BIS Total Capital Adequacy Ratio equals Total Capital as of the period end
divided by Total Risk Weighted Assets as of the same date, both calculated in
accordance with the requirements of Basel Accord I

Bank of Georgia (LSE: BGEO, GSE: GEB) (the 'Bank'), Georgia's leading universal
bank, announced today its Q3 2008 and YTD 2008 consolidated results (IFRS-based,
derived from management accounts), reporting a Q3 2008 Net Loss of GEL 59.0
million. The Net Loss is mainly due to the extraordinary increase in Net
Provision Expense (GEL 103.2 million for the quarter) related to the military
conflict between Georgia and Russia in August 2008 (the 'Conflict').
Consolidated Net Income for nine months of 2008 amounted to GEL 1.3 million. Net
Provision Expense for the quarter has been calculated based on management's
estimates, which, management believes, are conservative and should cover any
potential loss in the loan portfolio.

Q3 2008 Summary

In Q3 2008 the Bank's Total Operating Income (Revenue) increased by 52.9% y-o-y
(q-o-q(7)) to GEL 85.9 million. Net Interest Income grew by 75.9% y-o-y (up 5.4%
q-o-q) to GEL 58.9 million and Net Non-Interest Income amounted to GEL 27.1
million up 19.1% y-o-y (down 10.1% q-o-q). Increased interest rates on banking
products and growing share of higher-yielding retail loans in the Bank's loan
portfolio continued to drive Interest Income growth during the quarter. The Net
Interest Margin increased to 9.8% in Q3 2008 from 9.1% in Q2 2008, 8.9% in Q1
2008 and 7.6% in Q3 2007, reflecting the growth of Net Interest Income and the
decrease of interest expense resulting from the deposit outflow during the
quarter and the repayment of US$55 million first tranche of the Bank's US$123.5
million syndicated loan received in August 2007.

The decrease of Net Income from Documentary Operations (GEL 1.7 million, down
9.8% q-o-q and by 6.9% y-o-y) and of Net Foreign Currency Related Income (GEL
9.4 million, down by 9.3% q-o-q, and up 51.4% y-o-y), was a result of the
decrease of foreign exchange trading volumes during September, in the aftermath
of the Conflict, and low foreign exchange (GEL/USD) volatility during the
quarter. Net Fee and Commission Income grew by 7.7% q-o-q during the quarter (up
58.5% y-o-y) and reached GEL 10.9 million.

Net Other Non-Interest Income amounted to GEL 5.0 million during Q3 2008, down
34.7% q-o-q and down 35.7% y-o-y and was largely a reflection of disrupted
capital markets affecting the operations of Galt & Taggart Securities ('GTS'),
the Bank's brokerage subsidiary. The 34.7% decline in Net Other Non-Interest
Income was the main contributor to the 10.1% q-o-q decrease in Net Non-Interest
Income for the quarter, which amounted to GEL 27.1 million, up 19.1% y-o-y.

Consolidated Recurring Operating Costs for the quarter grew by 1.6% q-o-q (up
70.5% y-o-y) to GEL 49.6 million, resulting in Net Normalized Operating Income
('NNOI') of GEL 36.3 million, a 34.1% increase y-o-y (down 2.1% q-o-q).

The Bank's Net Non-Recurring Cost of GEL 2.6 million in Q3 2008 (25.9% y-o-y),
was largely due to the unplanned costs associated with the Conflict.

YTD 2008 Summary

In nine months of 2008 the Bank's Total Operating Income (Revenue) increased by
69.3% y-o-y to GEL 252.9 million, driven by an 81.9% increase y-o-y in Net
Interest Income and a 50.0% increase y-o-y in Net Non-Interest Income. Total
Recurring Operating Costs increased by 81.0% y-o-y to GEL 143.0 million. NNOI
grew 56.2% y-o-y to GEL 110.0 million. The Bank reported Net Profit of GEL 1.3
million for nine months of 2008 due to the Conflict-related increase in Net
Provision Expense to GEL 103.2 million in Q3 2008.

On 30 September 2008 the Bank's consolidated Total Assets amounted to GEL 3.2
billion (up 31.2% y-o-y, up 6.8% year-to-date and down 7.2% in Q3 2008 as
compared with Q2 2008 or q-o-q). Gross Loans stood at GEL 2,060 million (up
58.1% y-o-y, up 17.6% year-to-date and down 2.2% q-o-q). Corporate Gross Loans
to Clients in Georgia stood at GEL 795.8 million (up 11.2% y-o-y, down 1.4%
year-to-date and down 9.6% q-o-q). Retail Gross Loans to Clients in Georgia
reached GEL 930.9 million (up 74.4% y-o-y, up 44.5% year-to-date and up 1.0%
q-o-q). Wealth Management Gross Loans to Clients in Georgia amounted to GEL 45.2
million (up 31.6% y-o-y, up 2.2% year-to-date and up 6.0% q-o-q). UBDP accounted
for 10.7% and 12.5% of the Bank's Total Assets and Total Gross Loans,
respectively. BNB accounted for 2.1% and 1.7% of the Bank's Total Assets and
Total Gross Loans, respectively.

As of 30 September 2008 the Bank's consolidated Total Liabilities stood at GEL
2.4 billion (up 24.6% y-o-y, up 0.8% year-to-date and down 7.7% q-o-q). Against
the background of intensifying competition for deposits in Georgia and 11.7%
appreciation of Georgian Lari against the US dollar during nine months of 2008,
Client Deposits in Georgia amounted to GEL 972.6 million (down 7.9% y-o-y and
down 16.6% q-o-q). Bank of Georgia's Consolidated Client Deposits stood at GEL
1,202 million (up 12.9%y-o-y and down 13.9% q-o-q).

As of 30 September 2008 Bank of Georgia on standalone basis held market share of
32.9%, 32.6% and 27.8% by total assets, gross loans, and deposits, respectively
in Georgia(8).

As of 30 September 2008 the Bank's Shareholders' Equity amounted to GEL 739.3
million, (up GEL 181.4 million year-to-date, up GEL 274.4 million y-o-y and down
GEL 43.7 million q-o-q). The Bank's equity book value per share stood at GEL
23.66 (US$16.84) as at 30 September 2008, up 38.2% y-o-y, up 14.7% year-to-date
and down 5.6% q-o-q.

Bank of Georgia (Standalone)

Discussion of the impact of the Conflict

Deposits

In Q3 2008, the Bank's deposits in Georgia decreased by GEL 194 million (or
16.6% q-o-q) to GEL 972.6 million. The decrease of deposits was primarily the
result of retail and corporate deposit withdrawals during the Conflict, as well
as unusually slow deposit inflows and high withdrawals during post-Conflict
period from corporate clients, which experienced business interruptions and loss
of revenue during the conflict. The decrease in deposits during the Conflict was
amplified by lending restrictions imposed on all Georgian banks by NBG until the
end of August 2008. Due to this restriction, many corporate customers, who
repaid their loans in August (total corporate loan repayments in August amounted
to GEL 81.7 million) were unable to draw down their existing credit lines, thus
affecting inflows on corporate current accounts.

The reduction of the deposits was also attributed to the appreciation of Lari
against USD by approximately 1% and EURO by approximately 10% in Q3 2008 also
contributed notably to the decrease in deposits.

Capital Adequacy, Liquidity and Leverage

According to the requirement of NBG Tier I Capital Adequacy Ratio should be no
less than 8% and Total Capital Adequacy Ratio no less than 12%. As of 30
September 2008, the Bank's Tier I Capital Adequacy Ratio was 18.2% and Total
Capital Adequacy Ratio was 15.5% by NBG standards. The Bank's Tier I Capital
Adequacy Ratio was 24.7% and Total Capital Adequacy Ratio was 25.3% by BIS
standards.

The Bank's NBG Liquidity Ratio stood at approximately 34% on 31 July 2008 and
decreased to 27% on 30 September 2008, still well above the NBG requirement of
20%.

The Bank's leverage ratio (Total Liabilities to Shareholders Equity) stood at
3.27x as of 30 September 2008, down from 3.35x on June 2008, despite
extraordinary Conflict-related loan loss provisions booked by the Bank.

Provisions

The Bank booked net loan loss provisions of GEL 103.9 million in Q3 2008, as
compared to loan loss provisions of GEL 2.8 million in Q3 2007 and GEL 8.6
million in Q2 2008. The Bank's management believes that these provisions are
made based on conservative assumptions and should be sufficient to cover any
potential Conflict-related loss in the loan portfolio. The increased provision
resulted in the NPL Coverage of 554% as of 30 September 2008.

The Bank's subsidiaries showed mixed results in Q3 2008. The Bank's Ukrainian
subsidiary, Universal Bank for Development and Partnership ('UBDP'), reported
its second consecutive profitable quarter since the start of the reorganization
in Q4 2007. UBDP's Net Income increased 9.7% q-o-q to GEL 0.72 million in Q3
2008.

GTS, the Bank's fully-owned investment banking subsidiary, which witnessed
significant market disruptions in Ukraine and Georgia in Q3, reported a
quarterly Net Loss of GEL 2.3 million. Aldagi BCI, the Bank's fully-owned
Georgian Insurance subsidiary, reported a quarterly Net Loss of GEL 26,000
compared with Net Income of GEL 36,000 in Q2 2008.

As of Q3 2008 the quarterly results of Belarusky Narodny Bank ('BNB') are fully
consolidated into Bank of Georgia financial results for the period. As the
acquisition of BNB was completed just few days before the end of the Q2 2008,
the Bank's equity interest in BNB was reported as Investments in Other Business
Entities on the Bank's 30 June 2008 Balance Sheet. In Q3 2008 BNB reported a Net
Income of GEL 1.0 million.

Business Unit Overview

Corporate Banking (CB)(9)

Allocated Revenues grew 46.0% y-o-y to GEL 71.6 million in nine months of 2008,
while Allocated Recurring Costs increased by 31.0% y-o-y to GEL 18.8 million.
NNOI grew 52.2% y-o-y to GEL 52.8 million, contributing 48.0% to the
consolidated NNOI. Net Income decreased by 203.1% y-o-y to Net Loss of GEL 22.7
million, which was primarily due to the extraordinary conflict-related
provisions booked by the Bank.

On a quarterly basis, Allocated Revenues in Q3 2008 grew 40.7% y-o-y to GEL 24.7
million, up 8.1% q-o-q, while Allocated Recurring Costs decreased to GEL 4.6
million, down 15.3% y-o-y, down 36.2% q-o-q. Q3 2008 NNOI grew by 56.0% y-o-y to
GEL 20.1 million, up 44.3% q-o-q, contributing 55.3% to the consolidated NNOI.
Q3 2008 Net Loss equaled GEL 45.6 million.

CB Gross Loans grew 11.2% y-o-y to GEL 795.8 million (down 1.4% year-to-date).
Allocated Client Deposits stood at GEL 576.2 million down 14.1% y-o-y and down
by 14.5% year-to-date. The reduction of deposits was mainly due to an outflow of
deposits during the Conflict.

Retail Banking (RB)

Allocated Revenues grew 102.3% y-o-y to GEL 132.1 million in nine months of
2008, while Allocated Recurring Costs increased by 68.7% y-o-y to GEL 57.2
million. NNOI grew 138.5% y-o-y to GEL 74.9 million, contributing 68.1% to the
consolidated NNOI. Net Income decreased 78.3% y-o-y to GEL 37.2 million.

On a quarterly basis, Allocated Revenues in Q3 2008 grew 118.3% y-o-y to GEL
50.6 million, up 15.6% q-o-q, while Allocated Recurring Costs grew to GEL 18.5
million, up 46.9% y-o-y and down 10.2% q-o-q. Q3 2008 NNOI grew by 203.5% y-o-y
to GEL 32.1 million, up 38.7% q-o-q, contributing 88.4% to the consolidated
NNOI. Quarterly Net Loss in Q3 2008 equaled GEL 17.2 million, compared to Net
Income of GEL 12.8 in Q2 2008 and Net Income of GEL 6.1 in Q3 2007.

RB Gross Loans grew 74.4% y-o-y to GEL 930.9 million (up 44.5% year-to-date),
driven by the increased lending activity due to high demand for mortgages, car
loans, consumer loans, credit cards and other retail banking products
predominantly in 1H 2008. Allocated Client Deposits increased 1.0% y-o-y to GEL
326.0 million (down 4.7% year-to-date), mainly due to the Conflict.

Wealth Management (WM)

In nine months of 2008 Allocated Revenues for WM was GEL 4.4 million, an
increase of 25.8% y-o-y. Net Income equaled GEL 579 thousand as compared to Net
Income of GEL 1.4 million for January - September 2007. On a quarterly basis,
Allocated Revenues was GEL 1.5 million, up 19.1% q-o-q and up 10.8% y-o-y. Net
Loss amounted to GEL 406 thousand in Q3 2008.

WM Gross Loans stood at GEL 45.2 million an increase of 31.6% y-o-y and up 2.2%
year-to-date. Allocated Client Deposits increased by 10.1% y-o-y (up 0.9%
year-to-date) to GEL 70.4 million, largely due to the outflow of deposits during
the conflict.

Ukraine

UBDP's Total Operating Income (Revenue) amounted to GEL 22.0 million in nine
months of 2008, while Recurring Costs stood at GEL 21.0 million, resulting in a
Net Income of GEL 0.7 million. On a quarterly basis, UBDP's Revenue increased by
29.2% from Q2 2008 to GEL 8.7 million and Q3 2008 Net Income reached GEL 0.7
million, up 9.7% q-o-q.

UBDP's Total Assets decreased by 3.8% year-to-date to GEL 336.8 million,
partially due to the 15% appreciation of Lari against Hryvna. Gross Loans to
Clients stood at GEL 256.8 million by 30 September 2008, down by 13.4%
year-to-date. Client Deposits dropped 36.3 % year-to-date to GEL 170.6 million,
reflecting the departure of several significant depositors due to UBDP's
restructuring during 1H 2008. As expressed in Hryvna, UBDP's Client Deposits in
Q3 2008 increased by UAH 23 million, up 3.8 % q-o-q. UBDP's Total Liabilities
stood at GEL 229.2 million.

UBDP's leverage is expected to decrease to just above 2.0x once the UAH 125
million capital increase, approved by the UBDP's Shareholders' Meeting in May
2008, is registered by the National Bank of Ukraine. UBDP has no international
wholesale funding to be refinanced in 2008 and 2009. The bank's exposure to the
real estate development sector is limited.

Belarus

BNB's Total Operating Income (Revenue) amounted to GEL 2.1 million in Q3 2008,
while Recurring Costs stood at GEL 1.3 million, resulting in a Net Income of GEL
1.0 million. BNB's Total Assets stood at GEL 66.7 million and Gross Loans to
Clients equaled GEL 34.7 million by 30 September 2008. Client Deposits amounted
to GEL 26.6 million, while Total Liabilities stood at GEL 29.7 million.

Galt & Taggart Securities (GTS)

Difficult capital markets in Georgia and Ukraine (both GTS Index and the PFTS
Index decreased by 68% in nine months of 2008) had a negative impact on GTS,
Bank of Georgia's fully-owned investment banking subsidiary. In Q3 2008 GTS
reported a Net Loss of GEL 2.3 million in Q3 2008 which compares to Net Loss of
GEL 2.6 million in Q2 2008. GTS' Revenue and Net Loss in Q3 2008 and Q2 2008
includes the loss from trading activities of GEL 5.8 million, which reflects
loss on GTS' proprietary trading book in Ukraine. In Q3 2008, GTS initiated a
strategic review of its operations and started the implementation of a
significant cost-cutting program, including headcount reduction and tight cost
control procedures, aimed at reducing its losses in Q4 2008 and returning to
profitability in 2009. GTS' Q3 2008 results also include relevant severance
payments related to the cost-cutting program.

Asset Management (AM)

The following key entities are included in the AM segment: Galt & Taggart Asset
Management ('GTAM'), the bank's asset management arm, majority owned by the
Bank; JSC Liberty Consumer (formerly JSC Galt & Taggart Capital ('GTC'), a
GSE-listed consumer-and retail- oriented investment company managed by GTAM in
which the Bank owns 65.24% equity stake and JSC SB Real Estate ('SBRE'), a real
estate investment company managed by GTAM in which GTC owns 52.08% equity stake.

In the nine months of 2008 Revenues of Asset Management business segment
amounted to GEL 14.6 million, which compares to GEL 2.4 million Revenues in the
same period in 2007. Net Income for the period amounted to GEL 11.2 million as
compared to GEL 1.2 million Net Loss for January - September 2007. On a
quarterly basis, Revenue from Asset Management business segment amounted to GEL
477 thousand, down 30.4% y-o-y, and down 71.6% q-o-q and Net Loss was GEL 410
thousand, down 46.0% y-o-y and down 112.0% q-o-q.

Insurance

Gross Premiums Written of Aldagi BCI, the bank's fully-owned Georgian insurance
subsidiary, increased by 61.9% y-o-y to GEL 49.3 million. Net Premiums Earned
grew 12.4% y-o-y to GEL 27.4 million. Revenues increased by 7.8% y-o-y to GEL
6.5 million for nine months of 2008. Net Loss for nine months of 2008 equaled
GEL 361 thousand. On a quarterly basis, Revenues increased by 25.9% y-o-y to GEL
2.1 million, while Net Loss amounted to GEL 26 thousand for Q3 2008. The loss in
2008 was mainly due to Aldagi BCI's participation in the state healthcare
program for socially vulnerable citizens and school teachers launched in Q4
2007, which brought 84,000 new clients to Aldagi BCI. The program which was
originally scheduled to end in September - December 2008, was extended for
another year at increased premiums per participant (60% upward adjustment to the
premium). Unlike other major Georgian insurance companies, Aldagi BCI chose not
to participate in a new similar program aimed at 550,000 socially vulnerable
citizens which was launched in 2008.

Comments

'We are pleased to report that despite the conflict between Russia and Georgia
in August 2008 and intensifying global financial crisis Bank of Georgia has a
strong capital base, solid liquidity position and clearly visible wholesale
funding pipeline.

Following the Conflict, we made significant loan loss provisions, which, in our
view, are based on conservative macro economic assumptions and are more than
adequate to cover all potential Conflict-related losses in the loan portfolio.
Despite these provisions our capital base remains strong and well above the
requirements of NBG. Our liquidity position is solid despite significant
Conflict-related deposit outflow in Q3 2008. Responding to increasingly
challenging market environment we plan to maintain a highly conservative
approach to liquidity management. We expect to further improve our liquidity
position through sizeable wholesale funding transactions mentioned in our
previous press releases.

The Conflict and the global financial crisis have forced us to temporarily put
on hold our plans to reduce the Bank's involvement in several of its non-core
subsidiaries, including Aldagi BCI, GTAM and Liberty Consumer. However, we plan
to re-launch these transactions as soon as the market environment permits',
commented Nicholas Enukidze, Chairman of the Supervisory Board.

(7) q-o-q compares Q3 2008 results with Q2 2008 results

(8) Market share data are derived from the information published by the National
Bank of Georgia (www.nbg.gov.ge) and represent an aggregation of standalone
financial information (non-IFRS, based on National Bank of Georgia requirements)
filed by Georgian banks. Deposit market share is calculated based on the amount
of total deposits, including client and interbank deposits

(9) The Corporate Banking business unit was previously referred to as Corporate
and Investment Banking ('CIB')

                                 SEGMENT RESULTS

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*T
                                                       9 months              9 months
Total Operating Income (Revenue)       Growth y-o-y         2008    Share         2007    Share
-----------------------------------------------------------------------------------------------
Corporate & Investment Banking                46.0%       71,606    28.3%       49,057    32.8%
Retail Banking                               102.3%      132,129    52.2%       65,326    43.7%
Wealth Management                             25.8%        4,372     1.7%        3,476     2.3%
Ukraine                                         NMF       21,963     8.7%            -     0.0%
Belarus                                         NMF        2,087     0.8%            -     0.0%
Galt & Taggart Securities                       NMF      (1,322)    -0.5%       18,703    12.5%
Asset Management                             505.7%       14,557     5.8%        2,403     1.6%
Insurance                                      7.8%        6,501     2.6%        6,032     4.0%
Corporate Center/Eliminations                -76.3%        1,036     0.4%        4,381     2.9%
-----------------------------------------------------------------------------------------------
Total Operating Income (Revenue)              69.3%      252,929   100.0%      149,379   100.0%
-----------------------------------------------------------------------------------------------

Total Recurring Operating Costs
-----------------------------------------------------------------------------------------------
Corporate & Investment Banking                31.0%       18,807    13.2%       14,357    18.2%
Retail Banking                                68.7%       57,230    40.0%       33,923    42.9%
Wealth Management                            115.7%        3,177     2.2%        1,473     1.9%
Ukraine                                         NMF       20,995    14.7%            -     0.0%
Belarus                                         NMF        1,315     0.9%            -     0.0%
Galt & Taggart Securities                     42.2%        6,823     4.8%        4,799     6.1%
Asset Management                              33.7%        5,167     3.6%        3,864     4.9%
Insurance                                     35.3%        6,664     4.7%        4,925     6.2%
Corporate Center/Eliminations                 45.6%       22,787    15.9%       15,651    19.8%
-----------------------------------------------------------------------------------------------
Total Recurring Operating Costs               81.0%      142,966   100.0%       78,991   100.0%
-----------------------------------------------------------------------------------------------

Net Income/Loss
-----------------------------------------------------------------------------------------------
Corporate & Investment Banking                  NMF     (22,749) -1756.9%       22,058    44.2%
Retail Banking                                78.3%       37,243  2876.3%       20,891    41.9%
Wealth Management                            -57.5%          579    44.7%        1,361     2.7%
Ukraine                                         NMF          682    52.6%            -     0.0%
Belarus                                         NMF        1,020    78.8%            -     0.0%
Galt & Taggart Securities                       NMF      (6,699)  -517.4%       10,926    21.9%
Asset Management                                NMF       11,154   861.5%      (1,152)    -2.3%
Insurance                                       NMF        (361)   -27.8%          645     1.3%
Corporate Center/Eliminations                302.5%     (19,574) -1511.7%      (4,863)    -9.8%
-----------------------------------------------------------------------------------------------
Net Income                                   -97.4%        1,295   100.0%       49,868   100.0%
-----------------------------------------------------------------------------------------------

Basic EPS Contribution                 Growth y-o-y Contribution    Share Contribution    Share
-----------------------------------------------------------------------------------------------
Corporate & Investment Banking                  NMF       (0.75) -1756.9%         0.87    44.2%
Retail Banking                                47.8%         1.22  2876.3%         0.83    41.9%
Wealth Management                            -64.7%         0.02    44.7%         0.05     2.7%
Ukraine                                         NMF         0.02    52.6%            -     0.0%
Belarus                                         NMF         0.03    78.8%            -     0.0%
Galt & Taggart Securities                       NMF       (0.22)  -517.4%         0.43    21.9%
Asset Management                                NMF         0.37   861.5%       (0.05)    -2.3%
Insurance                                       NMF       (0.01)   -27.8%         0.03     1.3%
Corporate Center/Eliminations                233.7%       (0.64) -1511.7%       (0.19)    -9.8%
-----------------------------------------------------------------------------------------------
Total                                        -97.8%         0.04   100.0%         1.98   100.0%
-----------------------------------------------------------------------------------------------
*T

                             SEGMENT RESULTS CONT'D

-0-
*T
Total Operating Income   Growth                                                                     Growth q-
 (Revenue)                 y-o-y      Q3 2008    Share      Q2 2008    Share      Q3 2007    Share        o-q
-------------------------------------------------------------------------------------------------------------
Corporate & Investment
 Banking                   40.7%       24,680    28.7%       22,841    26.6%       17,545    31.2%       8.1%
Retail Banking            118.3%       50,621    58.9%       43,782    51.0%       23,184    41.3%      15.6%
Wealth Management          10.8%        1,485     1.7%        1,247     1.5%        1,339     2.4%      19.1%
Ukraine                      NMF        8,714    10.1%        6,746     7.9%            -     0.0%      29.2%
Belarus                      NMF        2,087     2.4%            -     0.0%            -     0.0%        NMF
Galt & Taggart
 Securities              -128.2%      (1,934)    -2.3%      (1,006)    -1.2%        6,853    12.2%      92.3%
Asset Management          -30.4%          477     0.6%        1,678     2.0%          685     1.2%     -71.6%
Insurance                  25.9%        2,101     2.4%        2,600     3.0%        1,668     3.0%     -19.2%
Corporate
 Center/Eliminations     -147.3%      (2,316)    -2.7%        8,034     9.4%        4,897     8.7%        NMF
-------------------------------------------------------------------------------------------------------------
Total Operating Income
 (Revenue)                 52.9%       85,914   100.0%       85,921   100.0%       56,172   100.0%       0.0%
-------------------------------------------------------------------------------------------------------------

Total Recurring
 Operating Costs
-------------------------------------------------------------------------------------------------------------
Corporate & Investment
 Banking                  -15.3%        4,609     9.3%        7,230    14.8%        5,442    18.7%     -36.2%
Retail Banking             46.9%       18,531    37.3%       20,647    42.3%       12,611    43.3%     -10.2%
Wealth Management         196.5%        1,844     3.7%          677     1.4%          622     2.1%     172.3%
Ukraine                      NMF        6,730    13.6%        7,098    14.5%            -     0.0%      -5.2%
Belarus                      NMF        1,315     2.6%            -     0.0%            -     0.0%        NMF
Galt & Taggart
 Securities               -65.5%          894     1.8%        2,130     4.4%        2,591     8.9%     -58.0%
Asset Management          -41.2%          984     2.0%        1,368     2.8%        1,674     5.8%     -28.1%
Insurance                  46.1%        2,236     4.5%        2,616     5.4%        1,530     5.3%     -14.6%
Corporate
 Center/Eliminations      169.4%       12,484    25.2%        7,095    14.5%        4,635    15.9%      76.0%
-------------------------------------------------------------------------------------------------------------
Total Recurring
 Operating Costs           70.5%       49,627   100.0%       48,861   100.0%       29,106   100.0%       1.6%
-------------------------------------------------------------------------------------------------------------

Net Income/Loss
-------------------------------------------------------------------------------------------------------------
Corporate & Investment
 Banking                     NMF     (45,630)    77.4%       12,383    43.7%        6,721    38.4%        NMF
Retail Banking             87.0%       11,488   -19.5%       12,819    45.2%        6,142    35.1%     -10.4%
Wealth Management            NMF        (406)     0.7%          314     1.1%          497     2.8%        NMF
Ukraine                      NMF          721    -1.2%          657     2.3%            -     0.0%       9.7%
Belarus                      NMF        1,020    -1.7%            -     0.0%            -     0.0%        NMF
Galt & Taggart
 Securities                  NMF      (2,292)     3.9%      (2,553)    -9.0%        3,213    18.3%     -10.2%
Asset Management          -46.0%        (410)     0.7%        3,418    12.1%        (758)    -4.3%        NMF
Insurance                 -77.6%         (26)     0.0%           36     0.1%        (116)    -0.7%        NMF
Corporate
 Center/Eliminations         NMF     (23,423)    39.7%        1,261     4.5%        1,816    10.4%        NMF
-------------------------------------------------------------------------------------------------------------
Net Income/Loss              NMF     (58,958)   100.0%       28,335   100.0%       17,515   100.0%        NMF
-------------------------------------------------------------------------------------------------------------

                         Growth                                                                     Growth q-
Basic EPS Contribution     y-o-y Contribution    Share Contribution    Share Contribution    Share        o-q
-------------------------------------------------------------------------------------------------------------
Corporate & Investment
 Banking                     NMF       (1.51)    76.9%         0.40    44.1%         0.27    38.4%        NMF
Retail Banking             51.1%         0.37   -18.8%         0.41    45.4%         0.24    35.1%     -11.0%
Wealth Management            NMF       (0.01)     0.7%         0.01     1.1%         0.02     2.8%        NMF
Ukraine                      NMF         0.02    -1.2%         0.02     2.5%            -     0.0%       5.2%
Belarus                      NMF         0.03    -1.7%            -     0.0%            -     0.0%        NMF
Galt & Taggart
 Securities                  NMF       (0.07)     3.8%       (0.08)    -9.1%         0.13    18.3%     -11.3%
Asset Management          -40.7%       (0.02)     0.9%         0.11    11.6%       (0.03)    -4.3%        NMF
Insurance                    NMF       (0.00)     0.0%         0.00     0.2%       (0.00)    -0.7%        NMF
Corporate
 Center/Eliminations         NMF       (0.77)    39.3%         0.04     4.3%         0.07    10.4%        NMF
-------------------------------------------------------------------------------------------------------------
Total                        NMF       (1.96)   100.0%         0.91   100.0%         0.69   100.0%        NMF
-------------------------------------------------------------------------------------------------------------
*T

                             SEGMENT RESULTS CONT'D

-0-
*T
Total Assets             Growth y-o-y        Sep-08    Share        Sep-07    Share
-----------------------------------------------------------------------------------
Corporate & Investment
 Banking                        -0.5%     1,228,414    38.9%     1,235,060    51.4%
Retail Banking                  63.8%     1,506,102    47.7%       919,474    38.3%
Wealth Management                4.7%        73,357     2.3%        70,084     2.9%
Ukraine                           NMF       336,787    10.7%             -     0.0%
Belarus                           NMF        66,719     2.1%             -     0.0%
Galt & Taggart
 Securities                     54.8%        79,618     2.5%        51,442     2.1%
Asset Management               106.2%       119,230     3.8%        57,822     2.4%
Insurance                       53.2%        83,221     2.6%        54,339     2.3%
Corporate
 Center/Eliminations         -2344.5%     (339,193)   -10.8%        15,112     0.6%
-----------------------------------------------------------------------------------
Total Assets                    31.2%     3,154,255   100.0%     2,403,333   100.0%
-----------------------------------------------------------------------------------

Loans to Clients, Gross
-----------------------------------------------------------------------------------
Corporate & Investment
 Banking                        11.2%       795,783    38.6%       715,338    54.9%
Retail Banking                  74.4%       930,876    45.2%       533,644    41.0%
Wealth Management               31.6%        45,170     2.2%        34,316     2.6%
Ukraine                           NMF       256,816    12.5%             -     0.0%
Belarus                           NMF        34,681     1.7%             -     0.0%
Galt & Taggart
 Securities                      0.0%             -     0.0%             -     0.0%
Asset Management                 0.0%             -     0.0%             -     0.0%
Insurance                        0.0%             -     0.0%             -     0.0%
Corporate
 Center/Eliminations          -118.9%       (3,671)    -0.2%        19,412     1.5%
-----------------------------------------------------------------------------------
Total Loans to Clients          58.1%     2,059,656   100.0%     1,302,711   100.0%
-----------------------------------------------------------------------------------

Total Liabilities
-----------------------------------------------------------------------------------
Corporate & Investment
 Banking                        -3.0%     1,048,423    43.4%     1,081,302    55.8%
Retail Banking                  39.0%       873,506    36.2%       628,565    32.4%
Wealth Management               15.5%        96,949     4.0%        83,924     4.3%
Ukraine                           NMF       229,249     9.5%             -     0.0%
Belarus                           NMF        29,735     1.2%             -     0.0%
Galt & Taggart
 Securities                    154.5%        36,222     1.5%        14,230     0.7%
Asset Management                18.1%        36,529     1.5%        30,926     1.6%
Insurance                       65.4%        64,921     2.7%        39,258     2.0%
Corporate
 Center/Eliminations          -101.0%         (617)     0.0%        60,136     3.1%
-----------------------------------------------------------------------------------
Total Liabilities               24.6%     2,414,917   100.0%     1,938,341   100.0%
-----------------------------------------------------------------------------------

Client Deposits
-----------------------------------------------------------------------------------
Corporate Banking              -14.1%       576,169    47.9%       670,781    63.0%
Retail Banking                   1.0%       325,964    27.1%       322,798    30.3%
Wealth Management               10.1%        70,443     5.9%        63,998     6.0%
Ukraine                           NMF       170,552    14.2%             -     0.0%
Belarus                           NMF        26,558     2.2%             -     0.0%
Galt & Taggart
 Securities                    326.7%        32,346     2.7%         7,581     0.7%
Asset Management                 0.0%             -     0.0%             -     0.0%
Insurance                        0.0%             -     0.0%             -     0.0%
Corporate
 Center/Eliminations             0.0%             -     0.0%             -     0.0%
-----------------------------------------------------------------------------------
Total Client Deposits           12.9%     1,202,033   100.0%     1,065,158   100.0%
-----------------------------------------------------------------------------------

Book Value Per Share     Growth y-o-y  Contribution    Share  Contribution    Share
-----------------------------------------------------------------------------------
Corporate & Investment
 Banking                         1.7%          5.76    24.3%          5.67    33.1%
Retail Banking                  88.9%         20.24    85.6%         10.72    62.6%
Wealth Management               48.0%        (0.75)    -3.2%        (0.51)    -3.0%
Ukraine                           NMF          3.44    14.5%          0.00     0.0%
Belarus                           NMF          1.18     5.0%          0.00     0.0%
Galt & Taggart
 Securities                      1.3%          1.39     5.9%          1.37     8.0%
Asset Management               167.0%          2.65    11.2%          0.99     5.8%
Insurance                        5.4%          0.59     2.5%          0.56     3.2%
Corporate
 Center/Eliminations           553.1%       (10.83)   -45.8%        (1.66)    -9.7%
-----------------------------------------------------------------------------------
Book Value Per Share            38.1%         23.66   100.0%         17.13   100.0%
-----------------------------------------------------------------------------------
*T

                     NINE MONTHS 2008 INCOME STATEMENT DATA

-0-
*T
Period Ended                                 9 months 2008               9 months 2007         Growth(3)
Consolidated, IFRS Based                     US$(1)           GEL          US$(2)                Y-O-Y
000s, unless otherwise noted                     (Unaudited)                 (Unaudited)
 Interest Income                            217,192       305,155          99,637     165,198        84.7%
 Interest Expense                           100,145       140,704          45,115      74,800        88.1%
Net Interest Income                         117,047       164,451          54,522      90,398        81.9%
 Fee & Commission Income                     26,615        37,394          13,023      21,592        73.2%
 Fee & Commission Expense                     4,349         6,110           1,908       3,163        93.2%
Net Fee & Commission Income                  22,266        31,284          11,115      18,429        69.8%
 Income From Documentary Operations           4,608         6,474           3,215       5,330        21.5%
 Expense On Documentary Operations            1,043         1,465             907       1,503        -2.5%
Net Income From Documentary
 Operations                                   3,565         5,009           2,308       3,827        30.9%
Net Foreign Currency Related Income          23,536        33,068           9,999      16,579        99.5%
 Net Insurance Income                         4,151         5,833           3,380       5,605         4.1%
 Brokerage Income                             2,104         2,956           1,735       2,877         2.7%
 Asset Management Income                        740         1,040               9          14      7121.3%
 Realized Net Investment Gains                                                                      NMF(4)
  (Losses)                                  (1,346)       (1,892)           3,321       5,506
 Other                                        7,958        11,181           3,706       6,144        82.0%
Net Other Non-Interest Income                13,607        19,118          12,151      20,146        -5.1%
Net Non-Interest Income                      62,974        88,478          35,574      58,981        50.0%
Total Operating Income (Revenue)            180,021       252,929          90,096     149,379        69.3%
 Personnel Costs                             57,909        81,362          28,876      47,877        69.9%
 Selling, General & Administrative
  Costs                                      24,229        34,042           9,886      16,392       107.7%
 Procurement & Operations Support
  Expenses                                    7,039         9,890           4,065       6,741        46.7%
 Depreciation & Amortization                 10,072        14,152           4,047       6,710       110.9%
 Other Operating Expenses                     2,505         3,520             767       1,272       176.8%
Total Recurring Operating Costs             101,755       142,966          47,642      78,991        81.0%
Normalized Net Operating Income              78,266       109,963          42,453      70,388        56.2%
Net Non-Recurring Income (Costs)              6,588         9,257            (83)       (138)       NMF(4)
Profit Before Provisions                     84,854       119,220          42,370      70,250        69.7%
Net Provision Expense/(Benefit)              83,855       117,816           4,749       7,874      1396.2%
Pre-Tax Income                                  999         1,404          37,621      62,375       -97.7%
 Income Tax Expenses                             78           109           7,544      12,508       -99.1%
Net Income                                      922         1,295          30,077      49,868       -97.4%


Weighted Average Number of Shares
 Outstanding (000s)                                        30,451                      25,638        18.8%
Fully Diluted Number of Shares Period
 End (000s)                                                31,250                      27,249        14.7%
EPS (Basic)                                    0.03          0.04            1.17        1.95       -97.8%
EPS (Fully Diluted)                            0.03          0.04            1.10        1.83       -97.7%
*T

(1 )Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4050 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 September 2008

(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.6580 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 September 2007

(3) Growth calculations based on GEL values

(4) Not meaningful

                          Q3 2008 INCOME STATEMENT DATA

-0-
*T
Period Ended                     Q3 2008              Q2 2008       Growth(3)        Q3 2007          Growth
Consolidated, IFRS Based      US$(1)        GEL   US$(2)        GEL   Q-O-Q     US$(4)       GEL       Y-O-Y
000s, unless otherwise             (Unaudited)         (Unaudited)                 (Unaudited)
 noted
 Interest Income              77,138    108,379   73,481    104,196      4.0%     39,848      66,068     64.0%
 Interest Expense             35,250     49,527   34,106     48,362      2.4%     19,672      32,617     51.8%
Net Interest Income           41,888     58,852   39,375     55,834      5.4%     20,176      33,451     75.9%
 Fee & Commission Income       9,369     13,164    8,787     12,460      5.7%      5,134       8,513     54.6%
 Fee & Commission Expense      1,580      2,220    1,619      2,296     -3.3%        970       1,608     38.1%
Net Fee & Commission
 Income                        7,789     10,944    7,167     10,163      7.7%      4,165       6,905     58.5%
 Income From Documentary
  Operations                   1,592      2,237    1,615      2,290     -2.3%      1,396       2,314     -3.3%
 Expense On Documentary
  Operations                     390        548      294        417     31.4%        302         500      9.6%
Net Income From
 Documentary Operations        1,202      1,689    1,321      1,873     -9.8%      1,094       1,814     -6.9%
Net Foreign Currency
 Related Income                6,716      9,437    7,338     10,405     -9.3%      3,759       6,233     51.4%
 Net Insurance Income          1,750      2,459    1,224      1,736     41.7%      1,256       2,082     18.1%
 Brokerage Income                 82        115    1,104      1,566    -92.7%        818       1,355    -91.5%
 Asset Management Income         105        148      174        246    -39.9%          9          14    926.7%
 Realized Net Investment
  Gains (Losses)               (814)    (1,144)    (265)      (375)    204.7%      1,468       2,434    NMF(5)
 Other                         2,430      3,414    3,154      4,472    -23.7%      1,135       1,883     81.3%
Net Other Non-Interest
 Income                        3,553      4,992    5,392      7,645    -34.7%      4,686       7,769    -35.7%
Net Non-Interest Income       19,261     27,062   21,218     30,087    -10.1%     13,704      22,720     19.1%
Total Operating Income
 (Revenue)                    61,149     85,914   60,593     85,921      0.0%     33,879      56,172     52.9%
 Personnel Costs              20,194     28,372   19,225     27,260      4.1%     10,555      17,500     62.1%
 Selling, General &
  Administrative Costs         7,642     10,738    8,463     12,001    -10.5%      3,912       6,486     65.6%
 Procurement & Operations
  Support Expenses             2,523      3,545    2,286      3,242      9.3%      1,354       2,245     57.9%
 Depreciation &
  Amortization                 3,885      5,458    3,289      4,664     17.0%      1,490       2,470    121.0%
 Other Operating Expenses      1,077      1,514    1,195      1,695    -10.7%        245         406    272.8%
Total Recurring Operating
 Costs                        35,321     49,626   34,458     48,862      1.6%     17,555      29,106     70.5%
Normalized Net Operating
 Income                       25,827     36,287   26,135     37,059     -2.1%     16,324      27,066     34.1%
Net Non-Recurring Income
 (Costs)                     (1,854)    (2,605)    2,393      3,394   -176.8%    (1,248)     (2,070)     25.9%
Profit Before Provisions      23,973     33,682   28,528     40,453    -16.7%     15,076      24,996     34.7%
Net Provision Expense         73,432    103,171    5,073      7,194   1334.1%      1,853       3,072   3258.6%
Pre-Tax Income              (49,459)   (69,489)   23,455     33,259    NMF(5)     13,223      21,924    NMF(5)
 Income Tax
  Expenses/(Benefit)         (7,496)   (10,531)    3,473      4,924    NMF(5)      2,659       4,409    NMF(5)
Net Income                  (41,963)   (58,958)   19,982     28,335    NMF(5)     10,564      17,515    NMF(5)


Weighted Average Number of
 Shares Outstanding (000s)               31,250              31,247     0.01%                 26,222     19.2%
Fully Diluted Number of
 Shares Period End (000s)                31,250              31,248     0.01%                 27,249     14.7%
EPS (Basic)                   (1.34)     (1.89)     0.64       0.91    NMF(5)       0.40        0.67    NMF(5)
EPS (Fully Diluted)           (1.34)     (1.89)     0.64       0.91    NMF(5)       0.39        0.64    NMF(5)
*T

(1) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4050 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 September 2008

(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4180 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 June 2008

(3) Growth calculations based on GEL values

(4) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.6580 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 September 2007

(5) Not meaningful

                               BALANCE SHEET DATA

-0-
*T
                                         30-Sep-08       Growth(2)      31-Dec-07      Growth(2)      30-Sep-07
Consolidated, IFRS Based               US$(1)        GEL    YTD       US$(3)       GEL   Y-O-Y      US$(4)        GEL
000s, unless otherwise noted            (Unaudited)                     (Audited)                    (Unaudited)

Cash & Cash Equivalents               122,030    171,452     -5.7%   232,642   370,273     83.7%    56,280     93,312
Loans & Advances To Credit
 Institutions                         198,307    278,622     46.6%   119,413   190,057    -16.4%   201,004    333,265
 Mandatory Reserve With
  NBG/NBU/NBRB                        107,474     25,478    -82.4%    90,872   144,631    -66.3%    45,548     75,518
 Other Accounts With NBG/NBU/NBRB     107,474    151,002    325.4%    22,303    35,497     65.4%    55,064     91,296
 Balances With & Loans To Other
  Banks                                72,699    102,142    928.7%     6,238     9,929    -38.6%   100,393    166,452
Available-For-Sale Securities          36,032     50,625      3.9%    30,616    48,729    391.6%     6,211     10,298
Treasuries & Equivalents               12,852     18,057    -77.4%    50,111    79,757    -69.3%    35,435     58,751
Other Fixed Income Instruments         11,713     16,457    -85.4%    70,814   112,708    -93.1%   144,272    239,203
 Gross Loans To Clients             1,465,947  2,059,656     17.6% 1,100,842 1,752,100     58.1%   785,712  1,302,711
 Less: Reserve For Loan Losses       (91,832)  (129,024)    333.8%   -18,689   -29,745    405.3%  (15,401)   (25,535)
Net Loans To Clients                1,374,116  1,930,632     12.1% 1,082,153 1,722,355     51.2%   770,311  1,277,176
Investments In Other Business
 Entities, Net                         74,174    104,214    158.8%    25,303    40,273    -28.5%    87,899    145,736
Property & Equipment Owned, Net       207,246    291,181     42.3%   128,585   204,656    109.0%    84,042    139,341
Intangible Assets Owned, Net            6,580      9,245    145.1%     2,370     3,772    215.3%     1,768      2,932
Goodwill                               95,894    134,731     20.1%    70,505   112,216    210.8%    26,149     43,355
Tax Assets - Current & Deferred           663        932    -40.1%       978     1,557    -72.3%     2,026      3,360
Prepayments & Other Assets            105,414    148,107     37.5%    42,258    67,258     63.4%    34,141     56,605
Total Assets                        2,245,021  3,154,255      4.9% 1,855,750 2,953,611     28.9% 1,449,538  2,403,334

Client Deposits                       855,539  1,202,033    -11.3%   851,644 1,355,476     12.9%   642,436  1,065,158
Deposits & Loans From Banks            87,458    122,878     86.7%    41,349    65,811     79.2%    41,348     68,556
Borrowed Funds                        674,592    947,801     13.4%   525,248   835,984     37.9%   414,667    687,518
Issued Fixed Income Securities          3,368      4,731     -5.2%     3,137     4,993       NMF         -          -
Insurance Related Liabilities          41,064     57,694     39.6%    25,968    41,330     75.2%    19,856     32,922
Tax Liabilities - Current &
 Deferred                              19,018     26,720    -28.2%    23,378    37,209     30.4%    12,360     20,493
Accruals & Other Liabilities           37,764     53,059     -3.2%    34,441    54,817    -16.7%    38,416     63,694
Total Liabilities                   1,718,802  2,414,917      0.8% 1,505,165 2,395,620     24.6% 1,169,084  1,938,341

Ordinary Shares                        22,242     31,250     15.1%    17,061    27,155     15.1%    16,378     27,154
Share Premium                         323,544    454,579     44.1%   198,175   315,415     49.7%   183,117    303,607
Treasury Shares                         (715)    (1,005)    -42.1%    -1,091    -1,737    -43.6%   (1,074)    (1,781)
Retained Earnings                      96,275    135,267    111.8%    40,122    63,858    116.1%    37,746     62,583
Revaluation & Other Reserves           46,010     64,644     -4.0%    42,318    67,354    268.9%    10,570     17,525
Net Income For The Period                 922      1,295    -98.3%    47,526    75,642    -97.4%    30,077     49,868
Shareholders' Equity Excluding
 Minority Interest                    488,277    686,030     25.3%   344,111   547,687     49.5%   276,813    458,956
Minority Interest                      37,942     53,308    417.4%     6,474    10,304    783.0%     3,641      6,037
Total Shareholders' Equity            526,219    739,338     32.5%   350,585   557,991     59.0%   280,454    464,993
Total Liabilities & Shareholders'
 Equity                             2,245,021  3,154,255      6.8% 1,855,750 2,953,611     31.2% 1,449,538  2,403,334

Shares Outstanding                                31,250     15.1%              27,155     23.5%               25,304
Book Value Per Share                    16.84      23.66     14.8%     12.95     20.62     48.2%      9.63      15.97
*T

(1) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.4050 per US$1.00, such exchange rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 30 September 2008

(2) Growth calculations based on GEL values

(3) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.5916 per US$1.00, such exchange rate being the official Georgia
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 31 December 2007

(4) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.6580 per US$1.00, such exchange rate being the official Georgia
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 30 September 2007

                                   KEY RATIOS

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*T
                                                                                9 months  9 months
                                                                                     2008      2007
Profitability Ratios
---------------------------------------------------------------------------------------------------
ROAA( 1), Annualised                                                                 0.1%      3.5%
---------------------------------------------------------------------------------------------------
ROA                                                                                 0.03%      2.8%
---------------------------------------------------------------------------------------------------
ROAE(2), Annualised                                                                  0.2%     16.2%
---------------------------------------------------------------------------------------------------
ROE                                                                                  0.1%     14.3%
---------------------------------------------------------------------------------------------------
Interest Income To Average Interest Earning Assets (3), Annualised                  17.2%     14.4%
---------------------------------------------------------------------------------------------------
Cost Of Funds (4), Annualised                                                        8.2%      7.3%
---------------------------------------------------------------------------------------------------
Net Spread (5)                                                                       8.9%      7.1%
---------------------------------------------------------------------------------------------------
Net Interest Margin (6), Annualised                                                  9.2%      7.9%
---------------------------------------------------------------------------------------------------
Net Interest Margin Normalized (35), Annualised                                      9.2%      7.9%
---------------------------------------------------------------------------------------------------
Loan Yield (7), Annualised                                                          12.9%     20.6%
---------------------------------------------------------------------------------------------------
Interest Expense To Interest Income                                                 46.1%     45.3%
---------------------------------------------------------------------------------------------------
Net Non-Interest Income To Average Total Assets, Annualised                          3.7%      4.2%
---------------------------------------------------------------------------------------------------
Net Non-Interest Income To Revenue (8)                                              35.0%     39.5%
---------------------------------------------------------------------------------------------------
Net Fee And Commission Income To Average Interest Earning Assets (9),
 Annualised                                                                          1.8%      1.6%
---------------------------------------------------------------------------------------------------
Net Fee And Commission Income To Revenue                                            12.4%     12.3%
---------------------------------------------------------------------------------------------------
Operating Leverage (10)                                                              0.3%     11.3%
---------------------------------------------------------------------------------------------------
Total Operating Income (Revenue) To Total Assets, Annualised                        10.7%      8.3%
---------------------------------------------------------------------------------------------------
Recurring Earning Power (11), Annualised                                             5.0%      6.4%
---------------------------------------------------------------------------------------------------
Net Income To Revenue                                                                0.5%     33.4%
---------------------------------------------------------------------------------------------------

Efficiency Ratios
---------------------------------------------------------------------------------------------------
Operating Cost To Average Total Assets (12), Annualised                              6.0%      4.1%
---------------------------------------------------------------------------------------------------
Cost To Average Total Assets (13), Annualised                                        5.6%      5.6%
---------------------------------------------------------------------------------------------------
Cost / Income (14)                                                                  52.9%     53.0%
---------------------------------------------------------------------------------------------------
Cost / Income, Normalized (37)                                                      55.5%       N/A
---------------------------------------------------------------------------------------------------
Cost/Income Distributed Non-Recurring                                               56.5%     52.9%
---------------------------------------------------------------------------------------------------
Cost / Income, Bank of Georgia, Standalone 15                                       45.4%     48.8%
---------------------------------------------------------------------------------------------------
Cost/Income, Normalized, Bank of Georgia, Standalone                                44.9%       N/A
---------------------------------------------------------------------------------------------------
Cash Cost / Income                                                                  47.3%     48.5%
---------------------------------------------------------------------------------------------------
Total Employee Compensation Expense To Revenue (16)                                 32.2%     32.1%
---------------------------------------------------------------------------------------------------
Total Employee Compensation Expense To Cost                                         60.8%     60.5%
---------------------------------------------------------------------------------------------------
Total Employee Compensation Expense To Average Total Assets, Annualised              3.4%      3.4%
---------------------------------------------------------------------------------------------------

Liquidity Ratios
---------------------------------------------------------------------------------------------------
Net Loans To Total Assets (17)                                                      61.2%     53.1%
---------------------------------------------------------------------------------------------------
Average Net Loans To Average Total Assets                                           59.1%     52.6%
---------------------------------------------------------------------------------------------------
Interest Earning Assets To Total Assets                                             71.1%     79.4%
---------------------------------------------------------------------------------------------------
Average Interest Earning Assets To Average Total Assets                             74.8%     81.1%
---------------------------------------------------------------------------------------------------
Liquid Assets To Total Assets (18)                                                  16.2%     30.6%
---------------------------------------------------------------------------------------------------
Net Loans To Client Deposits                                                       160.6%    119.9%
---------------------------------------------------------------------------------------------------
Average Net Loans To Average Client Deposits                                       141.8%    125.4%
---------------------------------------------------------------------------------------------------
Net Loans To Total Deposits (19)                                                   145.7%    112.7%
---------------------------------------------------------------------------------------------------
Net Loans To Total Liabilities                                                      79.9%     65.9%
---------------------------------------------------------------------------------------------------
Total Deposits To Total Liabilities                                                 54.9%     58.5%
---------------------------------------------------------------------------------------------------
Client Deposits To Total Deposits                                                   90.7%     94.0%
---------------------------------------------------------------------------------------------------
Client Deposits To Total Liabilities                                                49.8%     55.0%
---------------------------------------------------------------------------------------------------
Current Account Balances To Client Deposits                                         39.2%     57.2%
---------------------------------------------------------------------------------------------------
Demand Deposits To Client Deposits                                                   3.8%      9.6%
---------------------------------------------------------------------------------------------------
Time Deposits To Client Deposits                                                    57.1%     33.1%
---------------------------------------------------------------------------------------------------
Total Deposits To Total Assets                                                      42.0%     47.2%
---------------------------------------------------------------------------------------------------
Client Deposits To Total Assets                                                     38.1%     44.3%
---------------------------------------------------------------------------------------------------
Client Deposits To Total Equity (Times) (20)                                          1.6       2.3
---------------------------------------------------------------------------------------------------
Due From Banks / Due To Banks (21)                                                 226.7%    486.1%
---------------------------------------------------------------------------------------------------
Total Equity To Net Loans                                                           38.3%     36.4%
---------------------------------------------------------------------------------------------------
Leverage (Times) (22)                                                                 3.3       4.2
---------------------------------------------------------------------------------------------------
*T

                                KEY RATIOS CONT'D

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*T
                                                                                 9 months    9 months
                                                                                      2008        2007
Asset Quality
------------------------------------------------------------------------------------------------------
NPLs (in GEL) (23)                                                                  23,274      16,711
------------------------------------------------------------------------------------------------------
NPLs To Gross Loans To Clients (24)                                                   1.1%        1.3%
------------------------------------------------------------------------------------------------------
Cost of Risk (25), Annualized                                                         8.1%        1.0%
------------------------------------------------------------------------------------------------------
Cost of Risk Normalized (36), Annualized                                              8.1%        1.0%
------------------------------------------------------------------------------------------------------
Reserve For Loan Losses To Gross Loans To Clients (26)                                6.3%        2.0%
------------------------------------------------------------------------------------------------------
NPL Coverage Ratio (27)                                                             554.4%      152.8%
------------------------------------------------------------------------------------------------------
Equity To Average Net Loans To Clients                                               39.5%       46.8%
------------------------------------------------------------------------------------------------------

Capital Adequacy
------------------------------------------------------------------------------------------------------
Equity To Total Assets                                                               23.4%       19.3%
------------------------------------------------------------------------------------------------------
BIS Tier I Capital Adequacy Ratio, consolidated (28)                                 24.7%       23.2%
------------------------------------------------------------------------------------------------------
BIS Total Capital Adequacy Ratio, consolidated (29)                                  25.3%       23.3%
------------------------------------------------------------------------------------------------------
NBG Tier I Capital Adequacy Ratio (30)                                               18.2%       14.0%
------------------------------------------------------------------------------------------------------
NBG Total Capital Adequacy Ratio (31)                                                15.5%       16.9%
------------------------------------------------------------------------------------------------------

Per Share Values
------------------------------------------------------------------------------------------------------
Basic EPS (GEL) (32)                                                                  0.04        1.95
------------------------------------------------------------------------------------------------------
Basic EPS (US$)                                                                       0.03        1.17
------------------------------------------------------------------------------------------------------
Fully Diluted EPS (GEL) (33)                                                          0.04        1.83
------------------------------------------------------------------------------------------------------
Fully Diluted EPS (US$)                                                               0.03        1.10
------------------------------------------------------------------------------------------------------
Book Value Per Share (GEL) (34)                                                      23.66       17.12
------------------------------------------------------------------------------------------------------
Book Value Per Share (US$)                                                           16.84       10.33
------------------------------------------------------------------------------------------------------
Ordinary Shares Outstanding - Weighted Average, Basic                           30,450,867  25,637,740
------------------------------------------------------------------------------------------------------
Ordinary Shares Outstanding - Period End                                        31,250,211  27,154,099
------------------------------------------------------------------------------------------------------
Ordinary Shares Outstanding - Fully Diluted                                     31,250,211  27,249,100
------------------------------------------------------------------------------------------------------

Selected Operating Data
------------------------------------------------------------------------------------------------------
Full Time Employees (FTEs)                                                           6,165       3,992
------------------------------------------------------------------------------------------------------
FTEs, Bank of Georgia Standalone                                                     3,853       2,388
------------------------------------------------------------------------------------------------------
Total assets per FTE (23 )(GEL Thousands)                                            511.6       602.0
------------------------------------------------------------------------------------------------------
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands)                     818.6      1006.4
------------------------------------------------------------------------------------------------------
Number Of Active Branches                                                              139         108
------------------------------------------------------------------------------------------------------
Number Of ATMs                                                                         386         185
------------------------------------------------------------------------------------------------------
Number Of Cards (Thousands)                                                            918         529
------------------------------------------------------------------------------------------------------
Number Of POS Terminals                                                              2,969       1,093
------------------------------------------------------------------------------------------------------
*T

                               NOTES TO KEY RATIOS

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*T
    1 Return On Average Total Assets (ROAA) equals Net Income of the period divided by quarterly
       Average Total Assets for the same period;
    2 Return On Average Total Equity (ROAE) equals Net Income of the period divided by quarterly
       Average Total Equity for the same period;
    3 Average Interest Earning Assets are calculated on a quarterly basis; Interest Earning Assets
       include: Loans And Advances To Credit Institutions, Treasuries And Equivalents, Other Fixed
       Income Instruments and Net Loans to Clients;
    4 Cost Of Funds equals Interest Expense of the period divided by quarterly Average Interest
       Bearing Liabilities; Interest Bearing Liabilities Include: Client Deposits, Deposits And
       Loans From Banks, Borrowed Funds and Issued Fixed Income Securities;
    5 Net Spread equals Interest Income To Average Interest Earning Assets less Cost Of Funds;
    6 Net Interest Margin equals Net Interest Income of the period divided by quarterly Average
       Interest Earning Assets of the same period;
    7 Loan Yield equals Interest Income, less Net Provision Expense, divided by quarterly Average
       Gross Loans To Clients;
    8 Revenue equals Total Operating Income;
    9 Net Fee And Commission Income includes Net Income From Documentary Operations of the period ;
   10 Operating Leverage equals percentage change in Revenue less percentage change in Total Costs;
   11 Recurring Earning Power equals Profit Before Provisions of the period divided by average
       Total Assets of the same period;
   12 Operating Cost equals Total Recurring Operating Costs;
   13 Cost includes Total Recurring Operating Costs and Net Non-Recurring Costs (Income);
   14 Cost/Income Ratio equals Costs of the period divided by Total Operating Income (Revenue);
   15 Cost/ Income, Bank of Georgia, standalone, equals non-consolidated Total Costs of the bank of
       the period divided by non-consolidated Revenue of the bank of the same period;
   16 Total Employee Compensation Expense includes Personnel Costs;
   17 Net Loans equal Net Loans To Clients;
   18 Liquid Assets include: Cash And Cash Equivalents, Other Accounts With NBG, Balances With And
       Loans To Other Banks, Treasuries And Equivalents and Other Fixed Income Securities as of the
       period end and are divided by Total Assets as of the same date;
   19 Total Deposits include Client Deposits and Deposits And Loans from Banks;
   20 Total Equity equals Total Shareholders' Equity;
   21 Due From Banks/ Due To Banks equals Loans And Advances To Credit Institutions divided by
       Deposits And Loans From Banks;
   22 Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of
       the same date;
   23 NPLs (in GEL) equals total gross non-performing loans as of the period end; non-performing
       loans are loans that have debts in arrears for more than 90 calendar days;
   24 Gross Loans equals Gross Loans To Clients;
   25 Cost Of Risk equals Net Provision For Loan Losses of the period, plus provisions for (less
       recovery of) other assets, divided by quarterly average Gross Loans To
      Clients over the same period;
   26 Reserve For Loan Losses To Gross Loans To Clients equals reserve for loan losses as of the
       period end divided by gross loans to clients as of the same date;
   27 NPL Coverage Ratio equals Reserve For Loan losses as of the period end divided by NPLs as of
       the same date;
   28 BIS Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total
       Risk Weighted Assets as of the same date, both calculated in accordance with the
       requirements of Basel Accord I;
   29 BIS Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total
       Risk Weighted Assets as of the same date, both calculated in accordance with the
       requirements of Basel Accord I;
   30 NBG Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total
       Risk Weighted Assets as of the same date, both calculated in accordance with the
       requirements the National Bank of Georgia;
   31 NBG Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total
       Risk Weighted Assets as of the same date, both calculated in accordance with the
       requirements of the National Bank of Georgia;
   32 Basic EPS equals Net Income of the period divided by the weighted average number of
       outstanding ordinary shares over the same period;
   33 Fully Diluted EPS equals net income of the period divided by the number of outstanding
       ordinary shares as of the period end plus number of ordinary shares in contingent
       liabilities;
   34 Book Value Per Share equals Equity as of the period end, plus Treasury Shares, divided by the
       total number of Outstanding Ordinary shares as of the same date.
   35 Net Interest Margin Normalized equals Net Interest Income of the period, less interest income
       generated by non-performing loans through the date of their write-off, divided by quarterly
       Average Interest Earning Assets of the same period;
   36 Cost Of Risk Normalized equals Net Provision For Loan Losses of the period, less provisions
       for the interest income generated by non-performing loans through the date of their write-
       off, plus provisions for (less recovery of) other assets, divided by quarterly average Gross
       Loans To Clients over the same period;
   37 Cost / Income Normalized equals Recurring Operating Costs divided by Total Operating Income
       (Revenue) for the same period
*T

About Bank of Georgia

Bank of Georgia, the leading universal Georgian bank with operations in Georgia,
Ukraine and Belarus, 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 30 September, 2008). The bank has 149 branches and over 904,000 retail and
more than 133,000 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 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:

-0-
*T
   Standard & Poor's       'B/B'
   Fitch Ratings           'B/B'
   Moody's                 'B3/NP' (FC) & 'Ba1/NP' (LC)
*T

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

-0-
*T
Nicholas Enukidze                  Irakli Gilauri                    Macca Ekizashvili
Chairman of the Supervisory Board  Chief Executive Officer           Head of Investor Relations
+995 32 444 800                    +995 32 444 109                   +995 32 444 256
nenukidze@bog.ge                   igilauri@bog.ge                   ir@bog.ge
*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. Certain statements in this news report are forward-looking
statements and, as such, are based on the management's current expectations and
are subject to uncertainty and changes in circumstances.

The financial information as of Q2 2008, Q3 2008, nine months 2008, Q3 2007 and
nine months 2007 contained in this news report is unaudited and reflects the
best estimates of management. The bank's actual results may differ significantly
from the amounts reflected herein as a result of various factors.