TURKEY SECTORS & COMPANIES TODAY April 26, 2006

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KEY POINTS: * AMD Rail gives best bid for second phase of Marmaray * Akbank posts TRY 501mn profit for Q1 * Ulker generates TRY 4bn revenue last year * Government picks Calik for construction of Samsun-Ceyhan pipeline * Council of state to rule on Tupras case in two weeks * Competition board approves transfer of 34% stake in PO to OMV * Securitas agrees to buy 51% of DAK Guvenlik CONSTRUCTION & HOUSING AMD Rail gives best bid for second phase of Marmaray. AND Rail consortium, formed by Alstom, Marubeni and Dogus, gave the best bid of EUR 863mn for the second phase of the Marmaray project. Bechtel-Enka JV placed the second best bid of EUR 1.3bn. The second phase of the project includes improvement of 70.3 km long suburban lines namely Gebze-Haydarpasa and Sirkeci-Halkali to be connected to tube passage under the Bosphorus. European Investment Bank will provide EUR 650mn finance for the project. The Marmaray project is planned to be completed in 2008 and to cost USD 2.5bn. TKGN joint venture group had won the tender held for the first phase of the project which includes the construction of 13.7 km-long tube passage under the Bosphorus and the construction had started in August 2004.

FINANCIAL SERVICES Akbank posts TRY 501mn profit for Q1. Akbank announced that its net profit was TRY 501mn (USD 378mn) in Q1 that translated into 42% y/y increase. In the same period of last year the bank had posted a net profit of TRY 352mn (USD 266mn). The bank’s total asset size increased to TRY 52bn (USD 39bn) as of Q1. According to data of Banks Association of Turkey, the bank’s total assets stood at USD 36bn as of end-Sep, 2005. Loans increased by 11% in Q1, compared to end-2005 and reached TRY 24.5bn. Is Girisim increases stake in Step Hali to 33%. Is Girisim Sermayesi, a venture capital company, announced that it participated in the capital increase of Step Hali, which is a carpet retailer, with USD 500,000. Following the capital increase Is Girisim’s stake in Step Hali increased to 33.33% from the previous 30%. Toprak Leasing joins FFK Fon structures. Toprak Leasing announced that the merger between Toprak Leasing and FFK Fon Leasing will take place under the roof of FFK Fon. According to the statement released by Toprak Leasing, the merger will be based on the two companies’ end-2005 financials and the companies decided to make necessary applications for the merger.

FOOD, BEVERAGES & AGRICULTURE Ulker generates TRY 4bn revenue last year. Ali Ulker, general manager of Ulker Gida, said that the company’s biscuit, chocolate and confectionary sales amounted to TRY 4bn (USD 3bn) and exports stood at USD 150mn last year. According to Ali Ulker, the growth target of Ulker for chocolate and biscuits sector this year is 15% and their market share in biscuits reached 62% and 53% in chocolate. Ulker is the largest Turkish confectionary manufacturer and is local market leader in chocolate, cookies sectors.

UTILITIES & ENERGY Government picks Calik for construction of Samsun-Ceyhan pipeline. The cabinet signed the decree which picks Calik as the company to construct 550 km-long Samsun-Ceyhan pipeline that will transport oil from the Black Sea to the Mediterranean, according to media reports. Previously, some of the ministers had refused to sign the decree, as the project was to be awarded to a company without a tender being held and the issue led to a controversy. Now, the decree is sent to the President for ratification. The project is estimated to cost some USDD 1-1.5bn.

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Calik Enerji signed an agreement with Italian ENI for cooperation in the project in Nov 2005. It was reported that French oil and gas company Total proposed an alternative pipeline project for the Samsun-Ceyhan project. Council of state to rule on Tupras case in two weeks. The council of state, top administrative court in the country, is expected to give its final decision regarding the privatisation of oil refiner Tupras (Turkiye Petrol Rafinerileri A.S.) in two weeks. Yesterday, the hearings regarding the case started and the state prosecutor argued that the case should be dropped, while the workers’ union, Petrol-Is, insisted that the privatisation process should be annulled, citing irregularities. Now, the council of state’s 13th department has two weeks to announce its final decision regarding the case. However, we should note that the 13th department’s ruling still could be challenged. In addition to that, the Council of State’s Board of Administrative Cases Department will have a final say in the case. Koc-Shell consortium had won the tender held for sale of a 51% stake in the oil refiner with the best bid of USD 4.14bn however the workers’ union appealed against the privatisation. Upon the union’s appeal, the 13th department of the council of state had decided for the suspension of the sale. Yet, the privatisation administration did not take any action regarding the issue, since the oil refiner has already been transferred to the best bidder Koc-Shell. The privatisation administration announced on Mar 29 that the issue was presented to the High Board of Privatisation for its evaluation and High Board of Privatisation decided to wait for the court ruling. Competition board approves transfer of 34% stake in PO to OMV. Dogan Holding announced that the competition board approved the transfer of its 34% share in Petrol Ofisi to OMV Aktiengesellschaft. According to the statement released by Dogan Holding, the board evaluated the application regarding the share transfer and concluded that the transaction would not violate the competition rules. In March, Austria’s OMV agreed to buy 34% of oil distributor Petrol Ofisi from Dogan Holding for USD 1bn. Recently, Wolfgang J. Ruttenstorfer, CEO of OMV, said that the company considered building a refinery in Turkey and another objective of OMV was to undertake joint projects with Petrol Ofisi in neighbouring countries and in the Caspian region.

OTHER Securitas agrees to buy 51% of DAK Guvenlik. Securitas Security Services Europe announced that it agreed to acquire 51% of DAK Guvenlik, which is a security services provider. According to the statement by Securitas Security, the purchase price for 51% of the shares is SEK 21mn (USD 2.8mn) and the purchase price for the remaining 49% of the shares will be based on the financial performance of the company until the year 2009. The statement also noted that DAK Guvenlik’s estimated annual sales for this year is TRY 36mn (USD 27mn) and it has 3,000 employees. Securitas is active in more than 20 countries in Europe and North America and employs around 217,000 people. Securitas was founded in 1934 in Sweden.

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