GE Consumer Finance to Acquire Deltabank in Russia; Acquisition Is Largest Single GE Investment

GE Consumer Finance to Acquire Deltabank in Russia; Acquisition is Largest Single GE Investment in Russia to Date, and First for GECF

MOSCOW--(BUSINESS WIRE)--Aug. 11, 2004--

DeltaBank is a Leading Issuer of Visa Cards in Russia

GE Consumer Finance (GECF), the global consumer lending unit of General Electric Company (NYSE: GE), today announced that it has reached an agreement to acquire DeltaBank, a Moscow-based Russian consumer bank. DeltaBank's majority shareholders are Delta Russia Fund and The U.S.-Russia Investment Fund, both managed by Delta Capital Management.
The transaction is subject to regulatory approvals, and is expected to close in the fourth quarter.
Founded in 2000, DeltaBank provides a variety of consumer finance products through branches and more than 70 imbedded points of sale in established retail outlets, such as IKEA and other major retailers. DeltaBank is a leading issuer of Visa Cards in the Russian market, with over 103,000 credit cards issued. In addition to bank cards, DeltaBank also provides personal loans and sales finance.
"We believe we have found an excellent vehicle to become an immediate and significant participant in the early stages of the development of the Russian consumer finance market -- a market that is seeing exponential growth and one which has great potential," said David R. Nissen, GECF President & CEO. "Our global experience and risk management expertise, combined with our demonstrated success in emerging economies such as Eastern Europe and India, will give us a springboard for success in Russia, and provides us with an excellent opportunity to grow in a strategically important market - a market to which GE is committed."
"Alexander Grigoriev and his management team have done an excellent job in positioning DeltaBank for rapid, effective growth," said Patricia M. Cloherty, Chairman and CEO of Delta Capital Management, the US-Russia Investment Fund's manager. "The backing of GE Consumer Finance, a provider throughout the world of the highest quality financial services, will add both financial resources and technical depth to support the bank's further expansion in the Russian market."
"We expect the consumer finance market to grow substantially next year and other acquisitions in this sector to follow," added Kirill Dmitriev, Managing Director of Delta Capital Management. "Foreign strategic investors are increasingly investing in Russia's non-oil sectors."
GE Consumer Finance has had strong growth in the European region over the last decade. Currently, the Company operates in 20 European countries and has approximately $60 billion in assets in the region. In Eastern Europe, GECF currently has existing banking and consumer finance operations in Poland, Hungary, Czech Republic, Slovakia, and Latvia.
President and CEO of GE in EMEA, Nani Beccalli said, "This deal is the latest step in the story of GE's growth strategy in Europe and specifically in Russia, a market we have identified as particularly attractive for future investment. Building on the existing presence of all of our industrial businesses, this move into financial services shows our confidence in the opportunities in the Russian market and our commitment to significant growth there."

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CONTACT: For Delta Capital Management

Ekaterina Panteliushina, +7 (095) 960 3131

+7 (095) 999-1556

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For GE Consumer Finance

In Russia:

Globalworks

Kirill Golubkov, +7095 143 0608

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In the US:

GE Consumer Finance

Bob Rendine, 1-203-585-2084

VP, Global Communications

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For GE in Europe:

GE in Europe, Middle East and Africa

Louise Binns, +32 2 235 6912

Corporate Communications

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