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Greg Thain, IRG Chairman of the Board: "Growth of Consumer Related Companies to Advance Growth of Russian Economy"

April 1, 2003

Today the findings of a study called the 'Top 100 Emerging Companies of the Russian Consumer Market' became known. The study was conducted by Interactive Research Group (IRG). This is a first-of-its-kind study, which contains detailed information and analysis of the activities of the 100 most competitive and successfully managed companies in Russia. "If you're looking for dynamic Russian companies to invest in, lend to, acquire, merge with or market to, look no further," said Greg Thain, Chairman of the IRG Board of Directors. "I am sure that this study reveals some of the most exciting and potentially rewarding investment and sales opportunities in Russia in the coming decade." Thain said these 100 companies reflect the tremendous growth of Russia's consumer market. Previous studies conducted by IRG estimate the Russian consumer market at USD 260-275 billion in 2002, up 15 percent from 2001.

Evgeniy Gavrilenkov, the chief economist of Troika Dialog, believes that consumer demand in Russia is on the rise as real incomes increase, most significantly in Moscow and St. Petersburg. This is evident not only in the quantity, but also the quality of goods and services demanded by Russians. However, according to him, despite the fact that the Russian consumer market is developing relatively fast, it is still very small, and its share in the gross domestic product is far from the figures reported by countries with developed economies.

According to Thain, serious growth in the industry sector of the Russian regions is now visible. The study found that certain strong regional companies make it to the Moscow and the St. Petersburg markets. Thain said that now there are scores of successful, dynamically developing companies on the Russian market. However the study found that very few of those companies publish consolidated financial statements. Thain noted that there is evidence that this too may be changing. "Many of the companies already have begun or have plans to reorganize their structures to become more transparent and attractive for investors."

In conclusion, the chairman of the IRG Board of Directors said that the growth of consumer companies will promote the growth of the Russian economy.