In line with its social policy concept, in 2005 the Bank focused in particular on cooperation with the World Wildlife Foundation (WWF). Alfa-Bank is a proud member of the Foundation's Corporate Club and was one of the first Russian banks to provide financial support to WWF programs.

The World Wildlife Foundation is one of the world's largest non-governmental charitable organizations, with a history that goes back over 40 years. Every year the WWF implements more than 1,200 environmental projects, alerting millions of people worldwide to environmental issues. The WWF's mission is to prevent environmental degradation, and its main goal is to preserve biodiversity. The Foundation's priorities include the preservation of ecological regions and the protection of rare animal and plant species. The Foundation receives more than 50 percent of its funding from corporate and individual donors. WWF has recently celebrated its tenth anniversary. Over many years of activity in line with its approved, comprehensive environmental strategy, the Foundation has launched forest, marine and climate programs, and is continuing to focus on preserving rare animal and plant species, establishing and supporting specially protected natural areas, and developing environmental legislation. In Russia, 16 eco-regions have been identified, and it is these on which the Foundation is concentrating its efforts. More than 3,000 experts are involved in WWF Russia's projects today. The challenges facing the Foundation cannot be addressed unless governments, corporations and individuals pool their efforts. Global problems must be tackled at all levels - global, national, regional and individual. There is a pressing need to change attitudes to the environment and to start thinking environmentally. Alfa-Bank has decided to provide large-scale support to the WWF because Russia cannot prosper spiritually and materially unless its natural and cultural legacy is preserved. It is our profound conviction that all business entities have an obligation to take part in resolving societal problems and to assist governments in this area. For WWF Russia, cooperation with Alfa-Bank is not just a matter of obtaining additional funding for its programs. Through this partnership, the Foundation has acquired a unique opportunity to check the effectiveness of its policies, to assess objectively the strength of its arguments, and to receive feedback from at least one segment of the general public. No less important is the fact that the Bank's clients have become involved in addressing environmental issues. The launch by Alfa-Bank in conjunction with WWF Russia of a special twin-branded card enabling clients to contribute to conservation programs in Russia is an outstanding illustration of the commitment outlined above.

Alfa-Bank employees have become actively involved in charity programs. Many have made voluntary contributions to help children with severe health problems and to support environmental programs in Russia. This willingness to contribute is not just a manifestation of corporate solidarity. This is a worthy example to follow. The attached Report provides an insight into Alfa-Bank main activities in such areas as charity, support for Russian culture, sports and education.

Alexander Gafin Member of the Board of Directors Alfa-Bank Board Member WWF Russia

Igor Chestin Director WWF Russia

No business can exist in isolation from society and the challenges society faces. It is no coincidence, therefore, that the Bank seeks to be actively involved in addressing environmental and other developmental issues in Russia. This desire is a logical extension of the Bank's clearly formulated policy. The words "ecology" and "economy" share a common root - "oikos", meaning "home" or "homestead". Preserving the social, cultural and natural environment is a prerequisite of successful business development.

COOPERATION AGREEMENT WITH THE WORLD WILDLIFE FOUNDATION (WWF) On 3rd March 2005, Mikhail Fridman, Chairman of the Alfa Group Board of Directors and Alfa-Bank Board of Directors, and Igor Chestin, WWF Russia Director, signed a Cooperation Agreement. The main objectives of this Agreement include funding environmental projects and making raising public awareness of environmental issues and conservation programs in Russia, in particular the Live Planet Project. This Project seeks to protect regions that are key to the preservation of global biodiversity (Global 200), the protection of rare and endangered animal species, and changing natural resource consumption patterns. "Preserving Russia's natural and cultural legacy is an indispensable prerequisite of the nation's spiritual and material prosperity, and therefore we have decided to provide large- scale support to the Foundation", Mr. Fridman noted. The launch of this strategic cooperation program between Alfa-Bank, other members of the Consortium and the WWF is evidence that the Russian business community is now cognizant of the challenges facing the human race and of its responsibility to future generations. In addition to funding projects and initiatives under the aegis of WWF Russia, the Consortium's member companies are committed to promoting WWF goals amongst their own staff.

VISA CLASSIC INTERNATIONAL CARD Alfa-Bank has teamed up with World Wildlife Foundation (WWF) Russia to issue a jointly branded Alfa-Bank Express - WWF Russia card that enables cardholders to contribute to the cause of environmental protection in Russia. While cardholders use the card as they would use any other plastic card, the Bank donates to the WWF 0.3 percent of the value of each purchase made. The funds received will be used to finance priority environmental projects such as setting up national parks, preserving the tiger population and other endangered species. In addition, Alfa-Bank offers its clients the opportunity to make lump-sum contributions to WWF Russia or to set up a monthly direct debit transfer to the Foundation. Once a client's annual contribution exceeds 300 roubles he or she is mailed a WWF Russia Supporter Certificate, together with a Welcome booklet and Panda badge. If the Bank client's annual contribution is over 3,000 roubles he or she is granted the honorary title of Earth Custodian. Each Custodian receives a silver Panda badge, a certificate issued in his or her name, and an opportunity to participate in WWF events, including trips to protected areas and .

DANISH PRINCE THROWS CHARITY BALL IN WWF Russia and Alfa-Bank organized a charity ball hosted by WWF Denmark's Honorary Chairman, His Royal Highness Prince Henrik of Denmark during his visit to Moscow. The Danish prince's visit to Russia was in connection with the celebration of the 100th Earth Gift given by Krasnoyarsk region (Governor Alexander Khloponin), where 14 new special protected areas covering a total of three million hectares are to be established. This initiative was launched in 1996 when the WWF called upon all people to make Earth Gifts. Many government officials, as well as representatives of the business community, have already made considerable environmental commitments. As of today, the Earth has received 100 gifts, including 80 from various governments, totaling approximately 160 million hectares of new protected areas - a land mass four times the size of Germany.

"EARTH: AN UNKNOWN WORLD" PHOTOGRAPHIC EXHIBITION Alfa-Bank provided financial support for a photographic exhibition entitled "Earth: An Unknown World" at the Tyumen Museum of Fine Arts and the Vrubel Museum in Tomsk, at which more than 150 photographs from "GEO" Magazine were displayed. The photographs illustrated the four points of the compass - North, South, East and West - and depicted African tribal rituals, rites of Tibetan monks, pygmies hunting elephants, the everyday life of the Eskimo people, a corrida in Spain, Tunisian bridal dances, the giraffe women of the Palaun tribe etc. "We were delighted to respond positively to the invitation to sponsor the "Earth: An Unknown World" photographic exhibition, because we were convinced that it would not only provide a fascinating and educational journey for a very broad audience, but would also make many people think about the need to cherish the amazing treasures of our planet", said Ruslan Khvesyuk, Chairman of the Alfa-Bank Managing Board. At the exhibition opening ceremony in Tyumen, Alfa-Bank representatives presented the Tyumen Region Museum of Fine Arts with an engraving by Ivan Shishkin.

"ROUND-THE-WORLD" PHOTOGRAPHIC EXHIBITION Alfa-Bank sponsored the "Round-the-World" photographic exhibition held in the Nizhny Novgorod regional parliament building. Unique photographs by journalist, photographer and traveler Andrey Gudkov were displayed in an exhibition entitled "Africa: The Cradle of Civilization - Kenya and the Congo". These included more than 60 pictures taken in equatorial Africa, including remote jungles in the Congo and Kenya's world-famous national parks. Amongst the exhibition's organizers and partners were the World Wildlife Foundation (WWF) and the Russian International News Agency RIA Novosti.

The Life Line Program is aimed at people who are concerned about the nation's health, who are willing to help in the fight against infant mortality, and who are committed to bringing joy, happiness and smiles back to thousands of children in Russia.

Alfa-Bank is a Life Line Program partner. The Program's primary objective is to provide targeted support to children with severe health problems that can be successfully cured thanks to modern advances in medical science. The Life Line Program has already saved about 500 children in various regions of Russia through treatment sponsored by donations from over 30 Russian and international companies and over 400 individuals, together contributing about $2 million. Since February 2005, clients of Alfa-Bank branches and offices countrywide have enjoyed the opportunity to make commission-free contributions to the Life Line Program.

Golden Heart International Award The second Golden Heart awards ceremony and a charity concert to raise funds for the Life Line Program took place on 21st May at the Rossiya concert hall in Moscow, with world-famous Italian film star Sophie Loren acting as patron of the ceremony. Upon opening the event together with Organizing Committee Chairman Dr. Yakov Brandt, Loren noted that its principal aim was not merely to raise funds for treating children, but to make as many desperate parents as possible aware of the Life Line Program. 2005 Golden Heart prizewinners included:

n Ute Henrietta Ahoven, for many years of charitable activities and helping socially vulnerable children the world over;

n Lyudmila Senchenko, for her stalwart commitment to the Red Cross ideals;

n the Rodin Family, for adopting 23 children;

n and others.

Emma Chaplin, Natalia Oreiro, The Amici, Angelika Varum, , Tamara Gverdtsiteli and other stars took part in the charity concert. The televised version of the awards ceremony and concert were broadcast by NTV on Children's Day, 1st June. An SMS marathon supported by the Life Line Program ran throughout the day, with Sophie Loren calling on television viewers to pledge support for the children. More than 60,000 SMS messages were received, giving 11 children between the ages of two and 16 a chance to recover and resume a normal life.

White Nights Rally The White Nights Rally Project was organized by Charities Aid Foundation (CAF), a UK- based charity. In Russia the project was supported by the Dmitry Zelenin Dynasty Endowment, Alfa-Bank, the Far East Shipping Company, Chevron Texaco and White Hall. The idea behind the White Nights Rally was conceived by Lord Nicholas Fairfax, who brought together a team of like-minded enthusiasts and secured technical support from BMW. HRH Prince Michael of Kent was the patron of the Rally. The Rally's main objective was to promote a revival of Russian and European charitable traditions. Members of the British aristocracy and the Russian business community joined forces to provide financial assistance to underprivileged Russians. It took the Rally participants six weeks (in May-June, 2005) to travel from Vladivostok to St. Petersburg; along the route (the project took in 24 towns in the Far East, Siberia, the Urals, region and Central Russia), they ran charity events, awarded grants and held press conferences. In the course of the event, financial support was provided to socially important regional cultural and environmental projects. The White Nights Rally focused primarily on programs aimed at supporting families and children, and encouraging social and creative initiatives. Grant recipients included non- governmental and non-profit organizations in Russian regions, such as schools, universities, hospitals, orphanages, hospices and rehabilitation centers. Alfa-Bank, as organizer and participant of the Life Line Program, handed out medical treatment vouchers for children at award ceremonies in Irkutsk, Krasnoyarsk, Novosibirsk, Tyumen, Yekaterinburg, Nizhni Novgorod and St.Petersburg.

Barnaul The Life Line Program was presented at the regional children's hospital, where Alfa-Bank Altay branch officers awarded vouchers to cover the cost of treatment to Ilya Kaygorodov and Alexander Nechayev. Alfa-Bank also presented a wide-screen TV set, a VCR and a collection of cartoon videos to the hospital's Cardiology Department.

Novosibirsk Alfa-Bank representatives awarded vouchers to cover the cost of treatment of five Novosibirsk children - Ivan Matveyev, Sasha Serov, Pavel Yurechev, Olya Vakhrusheva, and Natasha Besshaposhnikova. The children, who were suffering from cardiac malfunction, or arrhythmia, have now completed a course of medical treatment at the Academician Meshalkin Scientific Research Institute in Novosibirsk.

Tomsk Alfa-Bank was one of the sponsors of the first Congress of Cardiologists of the Siberian Federal District, convened as part of the 25th anniversary celebrations of the Tomsk Institute for Cardiology Research. Alfa-Bank Branch representatives addressed the Congress delegates and granted vouchers to cover the cost of treatment of Danila Gerget at the Tomsk Institute for Cardiology Research within the Life Line Program.

Tyumen When the Rally arrived in Tyumen a press conference was held at the regional Journalists' Club, where Alfa-Bank representatives granted vouchers to cover the cost of treatment of Galya Babina, Olesya Bazhan, and Artyom Panov. Since June 2004, ten children from Tyumen Oblast have received financial support amounting to 1,336,000 roubles: nine young sufferers of cardiac arrhythmia have completed a course of treatment at the Regional Cardiology Center, and the tenth at the Bakulev Cardiac and Coronary Surgery Center in Moscow.

Yekaterinburg Speaking at a press conference held by Rally participants at the Interfax-Urals news agency, Lord Fairfax announced the award of a Charities Aid Foundation grant to the non-profit organization Social and Pedagogical Center for the Rehabilitation of Disabled Children. Alfa-Bank representatives in Yekaterinburg presented local resident Lyudmila Ovchinnikova with a voucher to cover the cost of a set of disposable medical instruments for surgery required by her daughter Vika. The operation was subsequently performed at the Pediatrics and Pediatric Surgery Research Center in Moscow.

Saint Petersburg As part of the Life Line Program, staff at the Bank's St.Petersburg Branch raised 128,000 roubles for surgery required by Ira Belevitina. The operation was performed on 19th October and the post-surgery recuperation phase was successful. Ira is now doing well.

Royal Philharmonic Charity Concert to Support Life Line Program The Royal Philharmonic gave a charity concert at the Barbican Theater in London, playing works by Haydn, Dvorak and Richard Strauss. The conductor was Julian Gallant and the solo cellist was Alexander Chaushyan. Proceeds from ticket sales and the post-concert charity auction were donated for the treatment of children with severe health problems as part of the Russian Life Line Program. Oleg Sysuyev, Chairman of the Life Line Program Board of Trustees, Board Members Alexei Venediktov and Svetlana Sorokina, diplomats, politicians, journalists, cultural and artistic figures attended the charity event.

Victory Day is enshrined forever in the annals of Russian history. It is a symbol of the nation's heroic exploits and of the glory of Russian arms. It is our duty to do everything possible to make sure that Second World War veterans live a little better, and that they enjoy care and attention at all times. Alfa-Bank is committed to continue supporting war veterans, as it has done over recent years.

Celebrations for Veterans We supported Victory Day celebrations and events for WW2 veterans in all cities where Alfa-Bank has branches. The Leningrad Tea Party, a traditional V-Day meeting of war veterans dedicated to the 60th anniversary of the heroic victory of the Soviet people, took place in the Kirov Central Park of Culture and Recreation in St.Petersburg. Veterans were offered refreshments in the open air in front of the Variety Theater's summer stage. As the brass band played, veterans were greeted by actors wearing WW2 uniforms, ushered to their tables and offered a tour of an exhibition of children's drawings and paintings. Alfa-Bank is proud to be directly involved in perpetuating the memory of the heroes who defended Leningrad during the war years. The Bank financed the building of a memorial to the women of the besieged city who fought in the Air Defense Force. The memorial was erected on 7th May 2002 at 16 Kronverkskaya St. In Nizhni Novgorod, the regional chapter of the Union of Journalists and the local branch of Alfa-Bank organized a meeting between WW2 reporters and the editors-in-chief and staff of the Nizhni Novgorod media where the veterans had worked during the heroic war years. The Lipetsk Branch solemnly congratulated war veterans on Victory Day. Shortly before the celebrations a memorial plaque dedicated to the memory of D. I. Barashev, a Hero of the , was unveiled on the Alfa-Bank branch building, and the street was renamed in his honor. In Voronezh and Krasnodar gifts were presented to veterans who had served as army correspondents. In Rostov-on-Don, Alfa-Bank representatives participated in a TV marathon entitled "Journalists for WW2 Veterans", organized by the Union of Journalists of the Southern Federal District and the STS - Southern Region TV channel. In a joint effort with the city and regional governments, Alfa-Bank's Samara branch participated in a meeting of the Board of Trustees of the regional hospital for WW2 veterans and Gerontology Research Center. Alfa-Bank staff members conveyed congratulations to war veterans, former inmates of Nazi concentration camps, and Leningrad siege survivors. The Bank's Chelyabinsk branch joined forces with the city's war veterans' organization "Defense" to organize a gift presentation ceremony. "Defense' has enjoyed the support of Alfa-Bank for several years now. In Tyumen, the local Alfa-Bank branch in cooperation with the regional Journalists' Club organized a Victory Day ceremony for war veterans. The event, which was held at the Journalists' Club, included the opening of a photographic exhibition entitled "Victorious Soldiers" and the unveiling of a memorial plaque dedicated to the memory of Tyumen journalists who fell on WW2 battlefields or died from wounds after the war. The Omsk branch, in conjunction with the Mayakovsky Cinema Hall, organized a congratulations ceremony for war veterans: 120 veterans were invited to attend a special show of the Torpedo Fighters movie followed by a gala dinner. Alfa-Bank's branch in Kurgan supported a charity event entitled "Come Together to Support the Kurgan Hospital for WW2 Veterans". The Kemerovo branch contributed to the refurbishment of the Intensive Care and Anaesthesiology Unit at the regional Veterans' Hospital in Kemerovo. All Bank branches participated in Victory Day commemoration events. Alfa-Bank presented war veterans with blood pressure monitors.

Social stability and prosperity in Russia depend to a large extent on how keenly companies are aware of their social responsibility. We will be proud if our charitable activities set an example for all those who believe in a prosperous Russia. We are convinced that the traditions of social initiative will revive and take root in today's Russia.

The Bank provides regular support to:

n RDD Charity Foundation

n Moscow Orphanage No.6

n Lyubertsy-based NGO "Childhood"

n "Maria" Charity Endowment

Alfa-Bank is working with the "Maria" Charity Endowment to support families of Moscow policemen killed in the line of duty. Alfa-Bank also plays an active role in the work of the Board of Trustees under the Moscow City Department of Internal Affairs.

"Honor and Valor" The Russian Council of Police and Interior Troops Veterans, the Union of Entrepreneurs - Police Force Veterans, and the "Honor and Valor" Regional Public Foundation for Supporting the Police Force have establishment the All-Russia "Honor and Valor" Prize. The initiative has received support from a number of public organizations and unions of creative artists, senior officers of the Ministry of Internal Affairs, and the Administration of the President of the Russian Federation. Alfa-Bank acted as the general sponsor of a ceremony to awards "Honor and Valor" prizes to police officers and servicemen of the Ministry of Internal Affairs held in the Central Federal District on 28th October 2005.

"My World" Creativity Festival for Disabled Children The 4th "My World" festival for disabled children from Russia and Former Soviet Union countries was held in Samara. Children's dance and choral groups performed at the Aurora House of Culture. The Festival was initiated by Irina Yakovleva, headmistress of Boarding School No.17 for children with speech defects. The Festival was organized by the Education Ministry of the Samara Regional Government, and the City Department of Education. Olga Petrova, Alfa-Bank's Samara regional manager presented awards to the most popular Festival winners on behalf of the spectators. The Samara branch has a history of supporting Boarding School No.7: it assisted with the refurbishment of the school's assembly hall and the purchase of equipment for its computer classroom. In February 2005, the branch collected items of clothing, toys and books for children at the school. In addition, regular support is given to Orphanage No.3 and the Regional War Veterans Hospital - Gerontology Research Center.

Chinese Fine Prints Presented to Irkutsk Regional Art Museum The oriental collection of the V.P.Sukachev Art Museum in Irkutsk received a gift of Chinese works of art: Alfa-Bank presented the museum with a valuable album containing 17 antique prints dating back to the 19th century drawn with mineral paints on the thinnest rice paper. Additional prints from Heilongjiang Province are examples of a special type of graphic art that was widely practiced in many regions of China in the past. The prints depict theatrical and literary scenes, religious feasts and portraits of young girls. Local artists, representatives of the Irkutsk city and regional governments and Alfa-Bank management were invited to an exhibition entitled "Spiritual Beauty - Chinese Color Prints of the 19th Century".

Certificate Award to the D.S. Likhachev Foundation Within the framework of the 2nd International Naval Show, Oleg Sysuev, First Deputy Chairman of the Board of Directors of Alfa-Bank, presented writer Daniil Granin, Co-Chairman of the Board of the D.S.Likhachev International Charity Foundation, with a check for 300,000 rubles to be spent on projects of cultural and historical significance in St. Petersburg. The Foundation is involved in a number of international, Russian and regional programs. Its best known projects are the creation of the Joseph Brodsky memorial apartment, the City of Peter the Great project, Solovki - Archipelago of International Cooperation, and Open World.

Miner's Day Celebration in Kemerovo The Bank's Kemerovo branch traditionally supports the annual Miner's Day celebration. In 2005, Kemerovo was declared the capital of the Miner's Day festivities and events there were attended by Oleg Sysuev, First Deputy Chairman of the Board of Directors of Alfa-Bank, Alexey Leonov, Vice President, cosmonaut and Hero of the Soviet Union, and Vice-President Andrey Gerasimov. At a reception held by the Governor to open the new Miners' Community Center, Leonov presented the Department for Culture and Ethnic Policy of the Government of Kemerovo region with a special gift from Alfa-Bank - the keys to a GAZel minibus

Alfa-Bank Becomes Founder Member of the Russian Olympic Athletes' Foundation Alfa-Bank management decided to become a founding member of the non-profit charity "Russian Olympic Athletes' Foundation". The Foundation's objective is to provide support to members of the Olympic teams preparing for the 20th Winter Olympics in Turin in 2006 and the 19th Summer Olympics in in 2008.

Charitable Contributions to Children's Sports School While supporting Russian sport at the highest level, we also realize the importance of promoting mass physical culture and sports. Alfa-Bank provides financial assistance to junior athletes, sports schools and centers on a regular basis. In 2005, the Bank's Tyumen branch purchased equipment for a children's sports school in Uvat district. Budding biathletes were given special equipment enabling them to train during the summer season. This gift was presented in the Biathlon Center during the prize-giving ceremony of Tyumen Region's 11th All-Russian Biathlon Competition.

Alfa-Bank continues its longstanding tradition of presenting valuable gifts to lovers of beauty, from breath-taking improvisations and melancholy rock ballads to divine symphonies, from fiery flamenco to fabulous ballet.

Maya Plisetskaya Jubilee The supported by Alfa-Bank held a festival in honor of , the outstanding ballerina and actress. A press conference on the Festival was held in the Atrium of the Bolshoi Theatre's New Stage, with Maya Plistetskaya, Anatoly Iksanov, General Director of the Bolshoi, Alexey Ratmansky, Artistic Director of Ballet at the Bolshoi, Alexander Gafin, Member of the Board of Directors of Alfa-Bank and others taking part. A festival of films about the ballerina was held in the Illusion cinema as part of the jubilee celebration. The Manezh Central Exhibition Hall held a photographic exhibition entitled "Maya Plisetskaya", organized and supported by the Regent Foundation of the Bolshoi Theatre and the Marius Liepa Foundation. Alfa-Bank was the exhibition's official partner. On display were pictures of friends and admirers of the talented ballerina - Pablo Picasso, Mark Chagal, Pierre Cardin, Robert Kennedy, Coco Chanel - with a central stand devoted to photographs of Plisetskaya herself. The pictures were selected from the best of collections by Richard Avedon, Georgy Solovyev, Leonid Zhdanov and Colette Mason. The Festival program included well-known classical ballets in which Plisetskaya played the star roles, such as Swan Lake, and a version of Carmen specially updated for the ballerina's jubilee by choreographer Alberto Alonso. Alexey Ratmansky presented a ballet entitled "Card Games" set to music by Stravinsky. The heroine of the occasion appeared on stage in all of the performances alongside the stars of the Bolshoi Theatre. The jubilee events concluded with a gala performance of Don Quixote on the stage of the State Kremlin Palace, involving Bolshoy soloists Svetlana Zakharova, Maria Alexandrova, Andrey Uvarov, Nikolay Tsiskaridze and guest stars Alina Kojokaru and Johannes Kobborg (Royal Ballet of Great Britain), Polina Semionova and Artem Shpilevsky (Berlin State Ballet), Viense Valdes and Joel Carrenio (National Ballet of Cuba) and others. The Russian dance project "Da Boogie Crew", Spanish flamenco dancer Joachim Cortes, monks from Shaolin and the A.V. Alexandrov State Academic Ensemble of Song and Dance of the Russian Army were invited to participate in the production. Plisetskaya's appearance on stage created a splendid finale to the concert: she danced a special version of "Ave Maria" produced for her by Maurice Bejard.

25th Svyatoslav Richter "December Soirees" International Festival The 25th Svyatoslav Richter December Soirees festival was held in the A.S.Pushkin State Museum of Art in Moscow. Alfa-Bank was one of the project sponsors. The December Soirees combine music and graphic arts. Each concert cycle includes an exhibition displaying items that are historically, thematically and figuratively associated with the festival program. In 2005, the theme was "Museum and Muses", and the exhibition was entitled "Ingres' Violin. The Second Mission. 20th Century". The concert program included performances by Russian and foreign musicians and was opened by Eldar Nebolsin, winner of the Svyatoslav Richter International Piano Competition. The exhibition showcased works by writers, musicians, producers and ballet dancers who have tried their hand at painting or graphic art. It included over 200 works by Vladimir Vasilyev, Hermann Hesse, Tonino Guerra, Frederick Duerrenmatt, Yury Zavadsky, Jean Cocteau, Henry Miller, Vladimir Naumov, Svyatoslav Richter and Mikhail Chekhov.

Tour by Yury Bashmet and the Moscow Soloists Chamber Music Company Yury Bashmet and the Moscow Soloists Chamber Music Company toured five Siberian cities (Novosibirsk, Tomsk, Kemerovo, Barnaul and Novokuznetsk) in March 2005 with support from Alfa-Bank. One concert was given in each city. The program included compositions by Reger, Shostakovich, Mozart and Sviridov. On 24th April 2005, Bashmet and the Moscow Soloists gave a concert in the Social and Business Center in the city of Perm.

Cesaria Evora Tours Siberia The world-famous singer Cesaria Evora toured Novosibirsk, Irkutsk and Krasnoyarsk with support from Alfa-Bank. The concerts were held in the Railwaymen's Social Center in Novosibirsk, in the Labor Sports Palace in Irkutsk and the Great Concert Hall in Krasnoyarsk.

Fuego Dance Show in Moscow A performance of Spanish dance entitled "Fuego" took place in Moscow's Variety Theatre on 14-17th April. Alfa-Bank was involved as official sponsor of the tour. Carmen Mota, director and choreographer of the show, is the author of many entertaining theatre performances. In Fuego, she has brought together 18 brilliant dancers and five talented singers and musicians. Lively flamenco music and vocals were combined with well-known compositions by Dire Straits and the evocative Carmina Burana cantata by Carl Orff.

Igor Moiseev Ensemble in Kiev The State Academic Folk Dance Ensemble directed by Igor Moiseev gave a concert in the National Theatre of Ukraine. Alfa-Bank was the sponsor of the event, which took place on the threshold of the remarkable choreographer's 100th birthday. For the first time, Ukrainian theatergoers were able to see one of Moiseev's most popular productions - the ballet "Witch Mountain Night" by Mussorgsky based on a story by Gogol, as well as the Dances of the Peoples of the World show. It was the first time in almost 30 years that the ensemble had performed in its founder's native city.

Mark Knopfler: Exclusive Concert in Moscow The legendary British rock musician Mark Knopfler gave an exclusive concert in Moscow as part of a tour to promote his latest album Shangri-La. The concert was held in the State Kremlin Palace and was supported by Alfa-Bank. About 6,000 people attended. Knopfler's new songs from the Shangri-La album were composed and arranged in 1960s style, and are mostly ballads with a mixture of blues, country rock and rock. In addition to the new songs, he also played some of his older well- known compositions.

Joseph Brodsky: Geography Lessons On 23rd September an on-line video conference was held on the subject of "Joseph Brodsky: Geography Lessons". A broadcast of the conference for Internet users was supported by Alfa-Bank as part of a program of cooperation with the US General Consulate in St.Petersburg. Alexander Gafin stated during the conference: "I would like to make particular note of events associated with the creative work of Joseph Brodsky in which Alfa-Bank has been involved. The oeuvre of this great poet has attracted admiration worldwide, and today's conference is an opportunity to bring together Brodsky's admirers for a discussion on various aspects of his life." During the video broadcast a new disk dedicated to the poet's creative work issued by the Anna Akhmatova Museum was presented. The disk was based on photographic material from an exhibition entitled "Joseph Brodsky: Urania. Leningrad - Venice - New York", held in 2003 and supported by the Bank and the US General Consulate in St.Petersburg.

Concert by Randy Brecker and the Igor Butman Quartet in Khabarovsk Concert by world jazz stars, trumpeter Randy Brecker and saxophonist Igor Butman, were held in the Khabarovsk Regional Center of Russian Army Officers with Alfa-Bank support. Brecker is a legendary American jazz musician who helped create many established jazz standards. He had performed in Russia before, but in the autumn of 2005 he took the country with the Igor Butman quartet for the first time.

DDT Anniversary Concert in Khabarovsk A concert by rock group DDT was held with support from Alfa-Bank in Khabarovsk's Platinum Arena Sports and Entertainment Complex, the biggest concert venue in the . About 4,000 DDT fans turned to see their idols play a concert that lasted for three and a half hours. The tour by Yury Shevchuk and his band was dedicated to DDT's 25th anniversary and took in about 40 towns and cities in Russia and the CIS. The tour was also designed to promote the band's new album "Missing in Action".

Phil Collins: Debut in Russia Phil Collins gave concerts in the Ledovy Palace in St.Petersburg on 18th October and in Moscow's Olympic Sports Complex on 20th October as part of his farewell world tour, which has also included concerts in Finland, the Czech Republic, Hungary, Serbia and Montenegro, Romania, Lebanon, Israel and other countries. Upon the advice of his doctors, Collins intends to give no more concerts after completion of this tour. The concerts in Russia were held with the financial support of Alfa-Bank. Jointly with regional media, the Bank also organized competitions for Collins fans in several Russian cities on his life and music. Winners from Vologda, Ekaterinburg, Krasnodar, Murmansk, Nizhni Novgorod and other cities were given a unique opportunity to see the musician live in the Olympic Complex. About 15,000 people attended the Moscow concert, at which Collins played his best hits, numbers from his latest album and a few Genesis songs.

Alfa-Bank has been involved in many major cultural events in Russia: performances by "Golden Mask" theatre award prizewinners, concerts by stars of the Bolshoi and Mariinsky theatres, exhibitions and competitions. Thanks to the Bank, world-famous performers have been seen not only on the stages of our capital city, but in other parts of the country also.

"Picturesque Journey through Old Kazan" Exhibition The Ministry of Culture of the Republic of , Alfa-Bank - Kazan and the State Museum of Fine Arts of the Republic of Tatarstan organized the "Picturesque Journey through Old Kazan" Exhibition, which formed part of Kazan's 1000th anniversary celebrations. It was held in the Exhibition Hall of the National Art Gallery in the Kazan Kremlin. The exhibition included works of art from Kazan collections such as the Museum of Fine Arts, the National Museum, the Tatarstan President's Fund, the N.I. Lobachevsky Scientific Library and also from St. Petersburg (Russian Museum) and Moscow (Museum of History and the Library of Social History).

" Treasures" Exhibition in Samara The Ministry of Culture of the Russian Federation, the Samara Regional Art Museum and Alfa-Bank presented a unique exhibition of items from the Moscow Kremlin State Historic and Culture Museum. The Exhibition was dedicated to the 200th anniversary of the Moscow Kremlin Armory and to the 155th anniversary of Samara Region. Over 150 exhibits were on show, some of which had never left the Kremlin before, including XVIIth century works from the Golden and Silver Chambers, Armory, Stables and Embassy Office and items by jewelers C.Faberge, P.A.Ovchinnikov and I.P.Khlebnikov.

Bulgakov Arts Festival The M.A. Bulgakov Creative Foundation held last year's International Bulgakov Arts Festival in Kiev with Alfa-Bank (Ukraine) support and under the patronage of City Mayor Alexander Omelchenko. The Festival was dedicated to Bulgakov's great works "The White Guard" and "The Days of the Turbins" and centred around the stage of the Gostiyni Dvor in Podol. Several events were held in the Podol and I. Franco theatres.

Vampilov Festival of Modern Dramatic Art The 5th All-Russian A.V.Vampilov Festival of Modern Dramatic Art was held in Irkutsk with Alfa-Bank support. Applications to participate were received from hundreds of theatre companies around Russia and the CIS, resulting in the Selection Committee choosing the 18 best performances presented by 16 theaters. The Festival opened with "Duck Hunt", a performance by the Omsk Academic Drama Theater based on the play by Alexander Vampilov. The Festival was founded by the Irkutsk Regional Government, the N.P. Okhlopkov Theatre and the A.V. Vampilov Young Spectators' Theatre and was held for the first time in 1997, 60 years after the playwright's birth and 25 years after his death.

Pyotr Fomenko Studio in Nizhni Novgorod In a collaboration program that began five years ago, the Government of Nizhni Novgorod and Alfa-Bank sponsor autumn tours of the best Russian theatre companies to mark City Day. In 2000, the first major tour of the O. Tabakov theatre took place, and in 2001, the Bank presented to the citizens of Nizhni Novgorod a Festival of Theatres involving performances by winners of the Golden Mask National Theatre Award. Similar theatre events were held in 2003 and 2004. In 2005, the Pyotr Fomenko Studio from Moscow performed one of their most popular pieces on the stage of Nizhnii Novgorod's "Komediya" Theatre - "Wolves and Sheep", a comedy by A.N.Ostrovsky directed by Pyotr Fomenko.

Rostov Drama Theater Tours Voronezh and Saratov With financial support from Alfa-Bank, the M. Gorky Academic Drama Theater from Rostov went on tour for the first time in the last 10 years. The company performed 18 plays on the stage of the A. Koltsov Academic Drama Theater in Voronezh and the I. Slonov Drama Theater in Saratov. Their repertoire included the following classical works: "Bel Ami" by G. de Maupassant, "Balakirev the Jester" by G. Gorin and "The Artful Sweetheart" by L. de Vega. Most of the performances were presented by the Theater's Chief Director, People's Artist of Russia Nikolay Sorokin.

"The Quartet" in Rostov Alfa-Bank presented a performance of "The Quartet" based on the play by Austrian playwright Ronald Harwood and directed by the famous Moscow director Kirill Serebryannikov. Serebryannikov, who holds numerous awards including the "TEFI" and "Khrustalnaya " awards and the Grand Prix of the Karlovy Vary festival, is a native of Rostov. He has produced plays, and films in the USA, Norway and the UK, and now in his native city. The performance by the M. Gorky Academic Drama Theater of Rostov starred the following People's Artists of the USSR and Russia: Mikhail Bushnov, Igor Bogodukh, Tatyana Shkrabak and Tamara Yablokova.

"Oscar" in Ufa As part of the celebrations to mark the 15th anniversary of Alfa-Bank , Claude Magnier's "Oscar" was performed at the Bashkortostan Republican Academic Russian Drama Theatre. Magnier's comedy has had worldwide success, including a version starring Gerard Depardieu on the stage of the Comedie Francaise. In 1967, a film version was made, in which Louis de Funes performed the leading role. In the early 1990s, American film makers decided to shoot a new version starring Sylvester Stallone. The Russian version of Magnier's play was produced by Pyotr Shtein. The author of the dialogues was the popular satirist Arkady Arkanov and the following actors were also involved: Alyona Bondarchuk, Natalya Varley, Vladimir Yeryomin, Tatyana Lyutayeva and Igor Ugolnikov.

First Performance by the "Tyumen Actor's House" A new non-profit partnership called the "Tyumen Actor's House" opened its doors in Tyumen on the eve of City Day and gave its first performance with financial support from Alfa-Bank. The project aims to promote theatrical art, to raise the level of professionalism amongst theater groups, to publicize achievements in stage art and to help provide social support for theatre veterans. The first performance of the Actor's House, based on "Kill Me, Honey!" by Turkish comedy writer Aziz Nessin, was held at the Tyumen Puppet Theater. It was directed by Russian State Award winner Mikhail Polyakov.

"Cinemania. New Russian Cinema" Film Festival in Samara Alfa-Bank, together with the Federal Agency for Culture and Cinematography, acted as organizer of the 19th "Cinemania: New Russian Cinema" film festival, which was held in Samara. The festival included screenings of 16 feature films and 11 animated films. The prize for "Best Film", sponsored by the Bank's Samara branch, was awarded to film director Valery Ogorodnikov.

The 4th International M.L.Tariverdiyev Organ Competition In Kaliningrad, the final round of the 4th International M.L.Tariverdiyev Organ Competition reached its conclusion. This is the only international organ competition in Russia; it was first held in Kaliningrad in September 1999, and has since been repeated every two years. Nineteen performers from Russia, France, Japan, Korea, Hungary, Ukraine, Estonia, Latvia and Armenia who had been successful in the selection rounds in Hamburg and Moscow, gathered to compete for the supreme awards and title of Competition Prizewinner. At the official closing ceremony in the Concert Hall of the Kaliningrad Philharmonic Center the winners, diploma holders, special prizewinners and runners-up were announced. Yuliya Yufereva from Nizhni Novgorod was awarded the Alfa-Bank special prize.

5th Book Festival "Into the XXI Century with a Book" in Kaliningrad The 5th "Into the XXI Century with a Book" festival was organized by the A.P. Chekhov Library with support from the Kaliningrad City Government. Alfa-Bank, the US Consulate General in St. Petersburg, the Goethe German Cultural Center, the Swedish Institute, the Hungarian Cultural Center and others acted as Festival partners. During the official opening ceremony, Tatyana Volichenko, Kaliningrad's best-known librarian, was awarded a VISA Electron credit card to which Alfa-Bank transferred the cash prize. As part of the Festival, the results of the "Amber Quill" competition were announced, and diplomas and prizes from the City Mayor and Alfa-Bank were granted to winners in the following nominations: Prose, Poetry, Fairytale after Fairytale, Literary Hero Memorial, Literary Translation, I am a Publisher, and Family Chronicles. The results of the "Amadeus of Koenigsberg" Literature Competition on the works of Hoffmann were announced, and prizes provided by Alfa-Bank, the Goethe Center and the German-Russian Union "Anthropos" were awarded.

Alfa-Bank's active involvement in establishing the "Big Book" National Award in Literature and the "Fame" Award aims to boost the prestige of creative activities and help talented people rise from obscurity to deserved recognition.

Foundation of the "Big Book" National Literary Award The biggest literary prize of Russia is the "Big Book" National Literary Award, founded by the Federal Agency for Press and Mass Communications, the Federal Agency for Culture and Cinematography, the National Literature Support Foundation, the Russian Literature Institute of the Russian Academy of Sciences, the Russian Book Union, ITAR-TASS and other organizations. The Award's mission is to draw public attention to national literature, to boost the social prestige of writers and writing, and to foster talent. The new award differs substantially from other Russian literary awards in the unprecedented size of the prizes: First Prize will be 3 million rubles, Second Prize 1.5 million rubles, and Third Prize 1 million rubles. The awards will be paid from the funds of the Home Literature Support Foundation, established by major Russian companies, including Alfa-Bank. Adopting the principles on which the Nobel Prizes are organized, the funds will be held in a bank account and the awards will be paid out of interest earned. All prose entries in the will be reviewed as eligible for the award. "In each country there is a major literary award - the Goncourt Prize in France, the Cervantez Award in the Spanish-speaking world - but Russia has nothing of this kind. This was, therefore, an initiative that Russian business simply could not ignore. We will consider our task done if works of literature acknowledged by the Russian public and honored with the new award create a unique encyclopedia of life in our times", noted the Chairman of Alfa-Bank's Board of Directors Mikhail Fridman. The Award Board of Trustees consists of writer Andrey Bitov, Sergey Stepashin, Chairman of the RF Audit Chamber, Mikhail Shvydkoy, Head of the Federal Agency for Culture and Cinematography, Oleg Sysuyev, First Deputy Chairman of Alfa-Bank's Board of Directors, Mikhail Seslavinsky, Head of the Federal Agency for Press and Mass Communications, and Sergey Filatov, President of the Foundation for Socioeconomic and Intellectual Programs. The Board is chaired by Nikolay Skatov, Director of the Russian Literature Institute of the Russian Academy of Sciences.

The "Fame" Award for Culture and Patrons of the Arts The editorial board of the "Izvestiya" newspaper and Alfa-Bank have jointly founded an annual award to support artists and patrons of the arts in all regions of Russia. The intention of the founders was to help creative people to become known nationwide and win deserved recognition of their talent and achievements. As part of the Award scheme and in response to a suggestion by Alfa-Bank, a special "Good Cause" nomination has been established for people who provide financial support to creative projects and who are involved in charitable activities in the regions - people who likewise deserve nationwide recognition. The "Fame" Award prize-giving ceremony took place in the A.S. Pushkin State Museum. In the Culture and Good Cause nominations prizes were awarded to 16 cultural and artistic figures and 13 patrons of the arts from 16 Russian cities. The awards were presented by actors Vasily Lanovoy, Lyudmila Maksakova, Vladimir Etush and Dina Korzun, poet Andrey Dementyev and "Izvestiya" employees Andrey Bilzho, Irina Petrovskaya, and Alexander Arkhangelsky. Prizewinners were also announced in a special nomination for the "Lifeline" Charitable Program: Mikhail Puretsky, a surgeon from the Russian Scientific Center of Surgery of the Russian Academy of Medical Sciences, and sponsors Western Union and Tyner Trust.

Since its first year of operation Alfa-Bank has promoted programs focused on supporting gifted youngsters. By sponsoring educational programs and offering personal grants for top students in Russia's higher education institutions, the Bank is making its own contribution towards the nationwide task of educating young entrepreneurs.

The "Alfa Chance" Program In 1995, Alfa-Bank set itself the task of selecting graduates with an aptitude for business from schools in Russia's regions to enable them to receive education in the fields of economics, business and finance in top Moscow higher education institutions. The 18 finalists of the "Alfa Chance - 1995" program have now completed their education in the Moscow State Institute for International Relations (MGIMO), Moscow State University (MSU), the Plekhanov Russian Academy of Economics (RAE), the International Higher School, the Finance Academy and the Moscow State Linguistics University and successfully begun their career development. In view of the Program's success and the fact that gifted young people in the regions of Russia are in need of support, Alfa-Bank continued the "Alfa Chance" Program in 2002. The competition resulted in the award of Alfa-Bank stipendiums to 19 finalists who are now studying in MSU, RAE, the Higher School of Economics State University, the State University of Management, the Bauman Moscow State Technical University, St. Petersburg State University of Economics and Finance, and the Leningrad State Electrotechnical University. Alfa-Bank never loses touch with its stipendium holders, and always keeps track of their achievements. Alfa Chance is not about training staff for Alfa-Bank, however, and the students have no formal obligations to the Bank. The Bank views this Program as a contribution to the nationwide task of educating young entrepreneurs.

"Emerging Opportunities Day: Trades for the Future" Conference A conference entitled "Emerging Opportunities: Trades for the Future" was held with the participation of Alfa-Bank's Novosibirsk branch. It was attended by students from Novosibirsk's top higher educational institutions, participants in the "Governor Core-Group School" program, representatives of local government, public organizations and major companies - in total, over 300 people. The full programme of events included seminars, master-classes for managers and meetings with government representatives and public organizations.

The "Unique Resources of Siberia" Social Program Alfa-Bank's Novosibirsk branch has been providing support to the "Unique Resources of Siberia" Social Program for two years now. The Program was established by the Social Partnership Public Council and the ANO MASS-Media-Center, with support from the "Siberian Agreement" Interregional Association and the Government of Novosibirsk Region. In 2005, over 500 students from 20 higher educational institutions in Novosibirsk took part, of which 260 successfully passed the final selection stage and competed to produce the best analytical work on topics proposed by local companies, as well is in the social projects competition. They also attended master-classes and seminars. At the prize-giving ceremony Alfa-Bank stipendiums were awarded for the best paper on economics to Galina Matyushkina, Anna Kazarinova and Roman Gots. In addition to cash prizes, they were offered the opportunity to be trained in the Bank. In recognition of their efforts, all Program entrants were presented with complimentary Alfa-Bank Visa Electron cards.

"Career. Success. Technologies" Conference A conference for students entitled "Career. Success. Technologies" focusing on career development and success in business, was held in Tomsk State University with Alfa-Bank support. It was organized by the Bank's Tomsk branch and the "Kontinent-Sibir" business newspaper to discuss the staffing situation in Tomsk companies and employment issues for young specialists and higher education graduates. The Tomsk branch provided gifts for the hundred best senior students, each of which received a complimentary six-month subscription to the "Kontinent-Sibir" newspaper. Twenty first-year students from the University who took part in the event were awarded Alfa-Bank Visa Electron cards.

The "Nizhni Novgorod Talent" Olympiad The "Nizhni Novgorod Talent" Olympiad is a joint project run by the Nizhni Novgorod regional government, the N.I. Lobachevsky Nizhni Novgorod State University and the "Birzha Plyus Karyera" weekly newspaper. This is the third year in a row the Olympiad has benefited from Alfa-Bank financial support and organizational participation. The event brought together 400 future students from virtually every part of the Nizhni Novgorod region. Awards and gifts were presented during the official prize-winning ceremony held in the Conference Hall of the University's Main Library. Alfa-Bank has established its own special prizes: Alexey Bashinov (first grade diploma in mathematics and physics) and Alexander Volkov (first grade diploma in IT) received from the Bank personal certificates entitling them to educational training in the Bank's Nizhni Novgorod branch, as well as gift prizes.

The "I love Omsk" Children's Painting Competition Alfa-Bank acted as the general sponsor of the 3rd Annual Municipal "I Love Omsk" Children's Painting Competition, which was dedicated to the 60th anniversary of the WW2 Victory. It was organized by the Omsk government together with the M.A Vrubel Omsk State Museum of Fine Arts and the "Skaz" Creative Union. The Competition attracted interest from about 30,000 boys and girls in secondary schools, art schools and studios in Omsk, and was held in several stages. Of the 9,560 pictures entered, only 500 successfully passed the first selection round, after which the jury chose the 50 best pictures. After the Competition the young artists' paintings were exhibited for two months on the Museum's stands and later formed the basis of a touring art show. The jury was made up of experts in the field of child creativity, teachers of art specialties from Omsk higher education institutions, Omsk artists and representatives of the Competition organizers. The official prize-giving ceremony took place in the State Marble Hall of the M.A. Vrubel Museum. The winners were presented with diplomas and painting sets, while the best entrants received valuable prizes. All participants in the event were awarded an official certificate.

The Bank is always open to dialogue with the media. It is most important that such dialogue is initiated by journalists. For us, the most valued qualities are objectivity and professionalism.

The Press Ball in Krasnoyarsk At the 11th Press Ball in Krasnoyarsk the results of the regional journalism competition were announced and the winners presented with diplomas and prize gifts. Alfa-Bank was the general sponsor of the event, which was attended by more than 400 representatives of the print and electronic media in Krasnoyarsk region. During the awards ceremony winners in 18 nominations were announced. In addition to cash prizes and diplomas, each of them received a complimentary Alfa-Bank Visa Classic card.

Regional Journalists Competition run by Alfa-Bank Alfa-Bank ran a competition amongst regional journalists covering economic and financial issues based on monitoring and assessment of articles published in the regional media in the course of 2004. The competition was won by eight journalists from different regions of Russia: Ivan Makarov (St. Petersburg), Mariya Ilyina (Nizhni Novgorod), Galina Smirnova (Rostov-on-Don), Roman Avrusin (Samara), Igor Stepanov (Chelyabinsk), Alyona Buchelnikova (Tyumen), Yuliya Danilova (Novosibirsk) and Yevgeny Galushko (Khabarovsk). Each of them was awarded a diploma and a valuable prize by the managers of Alfa-Bank's regional branches.

The "Miner's Day - 2005" Competition for Journalists The "Miner's Day - 2005" regional creative competition for journalists was held with Alfa-Bank support. The competition was run by the the Kemerovo regional government to mark Miner's Day. The Bank's Kemerovo branch contributed special cash prizes and highlighted the work of "Kuzbass" regional newspaper correspondents Lyudmila Hudik and Dina Kalitina for a series of articles on the problems of the coal industry in Kuzbass.

The "Economic Revival of Kuzbass 2004" Competition for Journalists The "Economic Revival of Kuzbass 2004" competition for journalists was held with Alfa-Bank support. It was run by the Kuzbass Chamber of Commerce and Industry and the Regional Union of Journalists. It drew entries from 34 journalists with an interest in economic issues. In addition to the valuable prizes and diplomas, the winners were awarded complimentary Alfa-Bank Visa Classic cards. Representatives one of the bank's Kemerovo Branch also made special mention of the "Samy Sok" magazine in Novokuznetsk for contributing to the development of quality press and presented the editorial board with an HP scanner.

The Alexander Nevsky Tsaritsin Orthodox Festival of Mass Media The Volgograd episcopate, regional and city governments, together with the "Alexander Nevsky" International Foundation, the regional branch of the Journalists' Union of Russia and the Volgograd State TV channel held the 5th International Alexander Nevsky Tsaritsin Orthodox Festival of Mass Media. Every year, Alfa-Bank's Volgograd branch takes part in the Tsaritsin Festival. Over 100 Russian and foreign broadcasting companies, radio stations, newspapers and magazines with a focus on the history and development of Orthodoxy, took part in the Festival's competition program. One of the Festival's objectives is to collect donations to rebuild the Alexander Nevsky Cathedral, which was destroyed in 1932. In addition to the three main nominations - "Appeal to the Holy Blessed Grand Duke Alexander Nevsky", "Orthodox Russia: Past and Present", and "Love of the Motherland is a Great Gift from God" - the organizers of the Festival have estaalished a special "My Lifeline" award in response to a proposal from Alfa-Bank. The winner in this nomination was the "Orthodox Word" newspaper of the Volgograd episcopate. Each edition of the newspaper carries features on minors who have been abandoned by their parents and require treatment and care. Margarita Chernova, the newspaper's Deputy Editor-in-Chief, was awarded a gold-leaf plate as a gift from the Bank.

The International Congress of the National Broadcasting Association Alfa-Bank sponsored the 9th International Congress of the National Broadcasting Association, held within the framework of NATEXPO 2005 and involving over 200 Russian and foreign companies. The Congress debated issues of vital importance for the industry, such as licensing, development of digital broadcasting in the country, high-resolution television, the future of TV broadcast programming and the relationship between broadcasters and TV advertisers.

Alfa Fellowship program The Alfa Fellowship program providing internships for US specialists in Russia was started in 2004 and is one the Bank's initiatives aimed at promoting and reinforcing social and cultural relations between Russia and the USA. The Program allows participants to undergo training at private companies, state and public institutions in Russia. We believe that the Alfa Fellowship program will help a new generation of Americans to adapt to the realities of the new Russia. The program is run by an Advisory Board chaired by Alfa-Bank President Peter Aven. The Board members are well-known Russian entrepreneurs, politicians, rectors of higher educational institutions and media representatives: Chairman of the State Duma Committee on International Affairs Konstantin Kosachev, Rector of the Higher School of Economics Yevgeni Yasin, President of the Russian TV Academy Vladimir Pozner and others. Program participants will work for six months in their professional fields with private companies and organizations includung the Economic Analysis Institute, Carnegie Moscow Center, ТNК-ВР, Аlfa Capital, Ekho Moskvy radio station, "Expert" magazine and others. In the USA, the Alfa Fellowship program is operated by CDS International, Inc., which is also involved in selecting the candidates. On the Russian side, the program is operated by the Center for International Fellowships. In addition to training, participants will attend a number of seminars in Moscow and make several visits to the regions. We would like to thank the governments of Arkhangelsk, Novgorod, Novorossiysk, Rostov-on-Don, Samara, and Cheboksary for providing hospitality to Program participants during their training and studies.

Alfa-Bank and the Lauder Institute of the Wharton School of Business Award for Excellence in Foreign Investment in Russia In March 2003, Alfa-Bank and the Lauder Institute of the Wharton School of Business announced the creation of a major new international investment award. The annual "Award for Excellence in Foreign Investment in Russia" is offered to the foreign company operating in Russia which best combines successful business operation with a strong sense of social interest and attention to training and preparing Russian workers and managers. Alfa-Bank and the Lauder Institute have selected United Technologies Corporation as the 2005 Winner of the Award. Alfa-Bank President Peter Aven presented the Award at a dinner organized by Alfa-Bank and the U.S.-Russia Business Council under the patronage of the Foreign Ministry of the Russian Federation and attended by over 200 prominent Russian business and political leaders. Mrs. Lisi Kaufman, Senior Vice President of Government and International Affairs at United Technologies Corporation, accepted the Award for UTC. The Keynote Address was delivered by the former British Prime Minister, the Rt. Hon. Sir John Major. The Award is presented by a distinguished jury appointed by Alfa-Bank and the Lauder Institute. Jury members for the 2005 Award are: Peter Aven (President of Alfa-Bank), Richard Burt (Former US Ambassador to Germany), Yegor Gaidar (Director, Institute for the Economy in Transition), Richard Herring (Director of the Lauder Institute), Shiv Khemka (Board of Governors, Lauder Institute), Paul Fribourg (Board of Governors, Lauder Institute), Bernie Sucher (Chairman, Alfa Capital). Past Winners: 2003 - Procter & Gamble, 2004 - Nestle.

Alfa-Bank's major capital is people. Our employees are not only highly qualified professionals, but form a sound integrated team. We have succeeded in combining an international team of managers with a Russian business style, and this is one of the main factors behind the Bank's success.

Compensation and Social Policy In 2005, Alfa-Bank continued to improve its compensation and social policies in areas such as salaries, benefits to employees and their families, training and staff development. The Bank aims to become the most attractive employer in the Russian banking sector. To achieve this objective a compensation policy has been established that ensures external competitiveness and links employees' compensation packages to operating results. The Bank's decision to conduct an annual salary revision, both in Moscow and the regions, has become a fundamental factor in this policy. In 2005, remuneration increased by approximately 10% in Moscow, and by 24% in the regions. In 2006, salaries are set to rise by an average of over 12%. The linkage between salaries and operating results has become more explicit. For employees involved in selling banking products a number of new bonus payment programs have been developed. Remaining highly competitive in the labor market is not only a question of monetary compensation, however: employee benefits are also important. Employees of the Bank enjoy the following benefits:

n voluntary medical insurance with a wide choice of medical establishments;

n prices substantially below the market rates;

n voluntary medical insurance of relatives with the same benefits as for employees;

n life and work incapacity insurance; loans on favorable terms (as soon as practicable);

n credit cards with preferential credit rates;

n payment of mobile phone services; holiday insurance for children of employees.

Staff Training and Development Professional, highly-qualified employees give the Bank an important competitive advantage, helping it to maintain its leading position in the market. We are convinced that people are our major capital. Consequently, the Bank devotes special attention to staff training and development. Training is focused in various areas:

n Professional education, training

n Foreign language study

n Corporate training programs

n Long-term training programs (promotion courses, continuing education, second degree)

n Business education training programs (MBA, GMP, etc.) in major Russian and foreign higher education institutions.

The Bank runs a "Welcome to Alfa-Bank" induction course for new employees.

Corporate Policy One of the main elements of Alfa-Bank's corporate policy is its carefully planned synthesis of Western expertise and a profound knowledge of the specifics of the Russian market. The Bank has managed to create a special multicultural environment enabling it to integrate an international team of managers and Russian business style, and this is one of the basic factors behind the Bank's successful development. The Bank employs over 6,000 people, for whom it is very important to provide consolidation via a common corporate structure. This purpose is served by "Alfa Navigator", a regularly updated networking publication that ensures prompt information sharing on company issues for all who work in the Bank, including its regional divisions. The publication is used as vehicle to carry out various surveys to better understand Bank employees and cultivate our corporate values. "Alfa Navigator" gives employees the opportunity to learn about the Bank's social initiatives, to exchange views and ask questions of management. Employee participation in the Bank's community projects, in particular the "Life Line" program, is of great importance for bringing employees together inside the corporation and reinforcing the corporate spirit.

Alfa-Bank has a long history of supporting charities, Russian culture and creating programs for young talent. Alfa-Bank and its managers have won numerous state awards and diplomas from international and domestic non-governmental organizations in recognition of the importance of their social investment and commitment to a sustainable future.

IN APRIL 2005, PETER AVEN, PRESIDENT OF ALFA-BANK, was awarded a State Order of Honor. Mr. Aven received this award from President of the Russian Federation and was named most admired executive in the financial sector for his strong sense of social interest, attention to education and national culture.

ALEXANDER GAFIN, MEMBER OF ALFA-BANK'S BOARD OF DIRECTORS, was awarded a state medal "For Services to Russia" by decree of the President of the Russian Federation. Mr. Gafin received this award for his strong commitment to support and preserve artistic and historical treasures and encourage young talent in Russia.

"SOCIETY EXPECTS business to work consistently to ensure social harmony and prosperity. It is therefore especially significant that in Russia today the activities of businessmen are valued by the State", Gafin commented on the occasion.

ALFA-BANK RECEIVED a special diploma "For Support of Russian Culture and Art" from the Russian Public Relations Association. The Bank was awarded for its active support to music ensembles and soloists, museums, exhibitions, libraries and other centers of intellectual and cultural activity around the country. It was also noted that Alfa-Bank's charity projects are distinctive in their relevance, novelty and focus.

ANDREY SOKOLOV, DEPUTY CHAIRMAN OF THE EXECUTIVE BOARD OF ALFA- BANK, AND ALEXANDER GAFIN, MEMBER OF THE BOARD OF DIRECTORS, were awarded commemorative badges in recognition of their long-term contributions in the area of charity, in particular for "Maria Charity Fund". The awards were presented by the Moscow Department of Internal Affairs.

OLEG SYSUYEV, FIRST DEPUTY CHAIRMAN OF ALFA-BANK'S BOARD OF DIRECTORS, AND ALEKSEY LEONOV, VICE PRESIDENT OF THE BANK and holder of two Hero of the Soviet Union awards, were honored by the Governor of Kemerovo for their important contributions in development of the region.