After my return, Iurii Krichever sent me by email the following description of Rinaco.

- INTERNATIONAL
- SPECIALISED
- INDEPENDENT

The Russian Investment Joint-Stock Company (RINACO) is a leading CIS universal financial company providing complex services for a wide range of clients.

RINACO was established in 1991 as an open joint-stock company with authorized capital of 1.2 billion rubles and remains the first and the largest investment company in the CIS.

The resources of RINACO's founders and thousands of its large and small stock holders which includes the nation's leading banks, exchanges, insurance and transport companies, radiostations and individuals makes it possible for RINACO to solve practically any problem in the field of financial and investment services.

RINACO's activities include:

• Investment Finance
• Privatization
• Banking
• Securities
• Venture & Debt Capital
• Legislation

When we established RINACO, we had one goal in mind - to create the finest investment company in the CIS. I believe we have accomplished that goal.

Our company has developed a wide range of services for state and non-state institutions in the fields of investments, finance, securities, insurance, and legislation. Headquarted in Moscow, RINACO is uniquely positioned to stay abreast of developments at the federal level. RINACO also has representatives in more than 120 cities in Russia and the other countries of the CIS. These representatives reflect our desire to provide clients with the most effective, efficient, and well- informed service available.

I believe in RINACO's team, composed of the most talented individuals in the business. It is this new generation which improves RINACO's philosophy, strategy, and management in the present market.

The ongoing overhaul of the nation's economy will have a substantial impact on everyone in the industry. The changes will be extensive, and only the strongest, most flexible financial institutions will prosper in the years ahead.

Today we are ready to work with you so that we may realize the full potential of future investment projects. I invite you to contact our team.

Best regards,

Dmitry Sukhinenko,
Chairman, Board of Directors

RINACO enters the new year with an established reputation for providing services to our clients in Russia and abroad in the areas of: legislation, consulting, privatization, securities operations, investments, and finance.

Our partners number more than one hundred. They include a number of the nation's top banks, exchanges, insurance companies, largest enterprises, government organizations, and several of the world's largest financial institutions. Its deep knowledge of the governmental process allows RINACO to bring its public policy perspective to the many diverse challenges faced by our clients in the present uncertain situation.

We place the entire potential of our company, including professional staff, infrastructure, finances, and experience in the public and private sectors, at the disposal of our partners who share our intentions on the integration of the national economy into the world economic system.

Sincerely,

Stepan Melkonov,
Chief Executive Officer

INVESTMENT FINANCE

Our investment financial policy focuses on:

o Shared Participating Investments

RINACO provides permanent capital through capital stock investment. In such cases owners share their equity in a project with RINACO. This permits them to reduce their exposure to risk and, by improving the project's capital base, often makes it possible to obtain substantially more debt capital for the project as well.

In addition, in order to finance large-scale industrial projects requiring hundreds of million of rubles, RINACO can raise funds through the issuance of securities.

o Direct Loans

Financing for smaller projects with a high rate of recoupment within a short period of time is provided through a direct loan program from RINACO's own funds. These investments generally range in amounts up to 30 million rubles.

PRIVATIZATION

RINACO is a leading adviser on all aspects of privatization, having been actively involved in many assignments on the territory of the CIS. RINACO's experience, knowledge of the market, analytical skills, and negotiating abilities have generated requests from both local governments wishing to implement privatization programs and companies being privatized. In addition to advising governments and the businesses to be privatized, RINACO also advises private companies wishing to take over public sector activities. We use a wide range of privatization methods, including public floatations, private placements, acquisitions, leases, and concessions.

BANKING

Quick decision making, experience, market knowledge, and total confidentiality are the central themes of RINACO's banking business. We concentrate on arranging and managing syndicated and bilateral credits for large- and medium-size corporate and financial sector borrowers. Contacts with one of our founders - a leading financial institution - insures quality assistance in the conversion of rubles and hard currency. The same contacts will also attend to your day-to-day banking needs.

We advise major companies on debt restructuring and other aspects of banking relationships.

VENTURE AND DEBT CAPITAL

RINACO has extensive experience in advising local governments, project sponsors and contractors in the field of raising venture and dept. capital. Venture capital is aimed at investment in high- growth companies, whether at start-up or at a later stage of development.

We can help to attract venture and debt capital up to hundreds of millions of rubles in the shortest possible period of time.

SECURITIES

RINACO was the first company in the CIS in the areas of creating:

- a totally integrated system for securities transactions;

- a computer-based depository for securities operations, developed in accordance with international standards, and - a telecommunications network for the securities industry.

RINACO's established depository system consists of the most modern electronic technologies for the issuance of securities, and operations with them. Our Moscow depository center presently holds the stocks of 10 joint-stock companies, of around 200,000 stockholders.

The dealer's network of RINACO (composed of more than two hundred independent stock dealers) is linked with the depository by a computer network that enables us to keep abreast of the securities markets of the whole territory of Russia, all other countries of the CIS, and some countries of Eastern Europe.

LEGISLATION

Our highly respected and experienced staff will:

- provide legislative consulting; - analyze legislative and regulatory initiatives that affect non-state institutions; - aid in establishing contacts with governmental officers, and - help to establish a joint-stock company, including the preparation of foundation documents and their processing through the governmental offices.

RINACO's Investment Project Digest

"NABAT"

NABAT manufactures, installs, and services high-security alarm systems designed for any movable or fixed property. NABAT owners are guaranteed full protection of their property through insurance coverage.

In the process of its operating the owners can rely on the broad possibilities of the Russian Ministry of Interior. The NABAT system shortly will be used in both the Kremlin and the "White House".

"FINANCIAL NETWORK"

Presently, the mass privatization in Russia is underway creating the need for the first Russian global depository network. RINACO created a special division to deal with the tremendous amount of shares to be issued. This wide network of sub depositories, spread over the country and connected with the main depository, will allow RINACO to become the "Chief Accountant" of the CIS.

A BIG CONSTRUCTION PROGRAMME

The BIG CONSTRUCTION PROGRAMME concentrates on reconstruction and new building on blocks in the historical part of Moscow. This program is carried out under the supervision the Moscow city government. Under this program a number of offices, hotels, dwellings, and restaurants will be built.

TV COMPANY "VCT"

VKT (from the Russian acronym "Your Commercial Television") is active in setting up a new national commercial TV network by establishing film, TV, animated cartoon, and sound recording studios and training personnel for the TV industry. VKT is responsible for several popular programs for business people that are broadcast during prime time.

"COROS" MEAT INDUSTRY

RINACO is organizing a number of small meat plants in the Moscow region. These plants will produce more than 120 varieties of meat products. A wide network of food shops has been established to sell these products.

"THE AMBER SHORE OF RUSSIA" This company is involved in new construction and the restoration of the existing dwellings on 175 acres in the territory of, on the Baltic seaside. The Amber Shore is actively involved in the organization of the tourism industry in this area.

MEDBANK

MEDBANK offers a bank of blood and marrow for the treatment of the victims of Chernobyl and other catastrophes. It includes oncology, hematology, organ transplantation and an information bank. MEDBANK also is working to establish a medical insurance program for the population of Russia.

The list of our large-scale investment projects also includes:

a computer network, an automobile production and a transport corporation, a merchant house, and an information-analytical agency.