KOMERCIJALNA BANKA AD BEOGRAD

PROSPECTUS ON THE XX ISSUE OF ORDINARY SHARES

Belgrade, October 24, 2007.

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PROSPECTUS CONTENTS: A) INTRODUCTORY PART OF THE PROSPECTUS............................................................................3 1. SHARES ISSUER ....... .................................................................................................................3 2. ISSUING SHARES.........................................................................................................................3 3. SCOPE OF SHARE ISSUE.............................................................................................................3 4. NUMBER OF SHARES AND THEIR NOMINAL VALUE....................................................................3 5. SHARES SALE PRICE....................................................................................................................3 6. RIGHTS AND LIABILITIES ARISING FROM SHARES.................................................................4 7. TIME, PLACE AND TERM FOR SHARE SUBSCRIPTION.................................................................6 8. PLACE AND CONDITIONS FOR PAYING IN THE SHARES.............................................................8 9. SECURITIES MARKET..................................................................................................................9 10.SUMMARY BASIC INFORMATION ON THE SHARES ISSUER.......................................................9 11.BROKER-DEALER COMPANY AND/OR AUTHORIZED BANK PARTICIPATING IN THE PUBLIC OFFER ORGANIZATION ...................................................................................10 B) MAIN PROSPECTUS...................................................................................................................11 1. DATA ON THE SHARE ISSUER...................................................................................................11 1.1. MAIN DATA.........................................................................................................................12 1.2. CAPITAL OF THE ISSUER....................................................................................................14 1.3. BOOK-KEEPING VALUE OF SHARES AND ISSUER’S SECURITIES TRADING............................................................................................................................11 1.4. SHARE HOLDRES...............................................................................................................16 2. BUSINESS ACTIVITIES, PROPERTY AND OTHER LIABILITIES OF THE

ISSUER................................................................................................................................16 2.1. SCOPE OF ACTIVITIES OF THE ISSUER..............................................................................16 2.2. PROPERTY AND LIABILITIES OF THE ISSUER..................................................................24 2.3. FINACIAL DATA.................................................................................................................39 2.4. OTHER MATERIAL DATA..………………………………………………………………………………..66 3. BUSINESS DEVELOPMENT POLICY OF THE ISSUER……………………………………………………..66 3.1. PLANNING OF THE ISSUER’S DEVELOPMENT POLICY....………………………………………….67 4. DATA ON THE MANAGEMENT BODY AND SUPERVISORY BOARD MEMBERS….………………….68 4.1. MEMBERS OF THE MANAGEMENT BODY AND THE SUPERVISORY BOARD….……………….68 4.2. FEES AND OTHER COMMISSIONS OF THE ISSUER..……………………………………………..68 4.3. SHARE OF THE MANAGEMENT BODY AND EMPLOYEES IN THE INITIAL CAPITAL OF THE ISSUER..........................................................................................................................................69 5. COMPETENT PERSONS..........................…………………………………………………………………….69 5.1. NAME AND SURNAME OF THE PERSON IN CHARGE OF THE WORDING OF THIS

PROSPECTUS......................................................................................…………………………69 6. COMMISSION DECISIONS............……………………………………………………………………………70 6.1. NUMBER AND DATE OF THE COMMISSION’S DECISION ON APPROVAL OF THE PROSPECTUS ON ISSUANCE OF SHARES..............................................................................…...70

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A) INTRODUCTORY PART OF THE PROSPECTUS

‘’ Securities Commission is neither liable for accuracy and completeness of the data stated in the prospectus on issuance of securities, nor for the securities issuer’s abilities to meet its obligations under the issuing securities“.

1. SHARES ISSUER

1.1. Name, Head Office, Registry and Tax Identification No.;

KOMERCIJALNA BANKA AD BEOGRAD, Svetog Save 14, 11000 Beograd, RN-07737068, TIN - SR 100001931

1.2. Basic activity; 065121-banking organizations

1.3. Initial capital amount as per the latest financial statement;

Share and other capital 12.662.890 (Din. 000) Reserves 1.962.557 Unallocated profit 1.369.106 TOTAL CAPITAL 15.994.553

2. ISSUING SHARES

2.1. Type, class, issue mark, CFI code, and ISIN security number;

Type of shares Ordinary (common) shares Class All shares are of the same class Issue mark XX issue CFI code ESVUFRISIN number RSKOBBE33594

3. SCOPE OF SHARE ISSUE

3.1. Total nominal value of all securities to be issued in dinars;

Total nominal value of all shares of the XX issue amounts to DIN 720.000.000,00 .

4. NUMBER OF SHARES AND THEIR NOMINAL VALUE 4.1. Total number of securities to be

issued; 72.000 individual securities

4.2. Nominal value per security Din. 10.000

5. SHARES SALE PRICE

5.1. Price at which the securities are offered ;

As concerns the Bank’s shareholders with the preferential right of subscription, the XX issue shares are sold at the price of Din. 112.000,00. As for shareholders who had

P R O S P E C T U S

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already used their preferential right of subscription, as well as all other interested parties, shares are sold at the issuance price of Din. 124.000,00. Shares are paid for in dinars.

5.2. Manner of securities payment Shares of the XX issue are paid for in dinars, into the payment account opened with Čačanska Banka ad Čačak

6. RIGHTS AND LIABILITIES ARISING FROM SHARES 6.1. Rights and obligations

under shares Rights of the purchasers of the XX issue of shares are defined by the Article 12. of the Decision on Issuance of the XX Issue of Ordinary Shares of Komercijalna Banka ad Beograd for the purpose of capital increase, and they comprise: 1. right of access to legal enactments, other documents and

information related to the company; 2. right to participate in the work of the General Meeting of the

Bank, in the manner and under conditions stipulated by the Statute;

3. voting right at the General Meeting of the Bank, so that one share is always entitled to one vote, in the manner and under conditions stipulated by the Statute;

4. right to payment of dividends, upon effecting payment of dividends for all issued preference shares in the full amount;

5. right to participate in allocation of bankruptcy surplus after the Bank’s bankruptcy is completed, and after effecting payments of preference shares to creditors and shareholders;

6. preferential right of acquisition of new issue shares and convertible bonds;

7. right of disposal with shares, pursuant to the law; 8. other rights prescribed by the law and the decision on share

issuance. Shareholders obligations are stipulated in the Articles of Association of Komercijalna Banka ad Beograd, and they read as follows: 1. they are to comply with the provisions of this agreement, the

Statute, and other enactments of the Bank, 2. they should duly notify the Bank on each incurred status change, 3. they are to meet other obligations in relation to the Bank, as

stipulated by the law, other regulations, this agreement, the Statute, and general enactments of the Bank.

6.2. Preferential right of subscription

Present shareholders have the preferential right of subscription to the XX issue of shares, proportionally to the nominal value of owned shares as at October 3, 2007.

6.2.1. Parties holding the preferential right of subscription and paying in of shares, as well as the grounds on which such right has been assigned (owners of ordinary shares, holders of warranties,

Present shareholders (owners of ordinary shares) have the preferential right of subscription to the XX issue of shares proportionally to the nominal value of owned shares as at October 3, 2007.

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convertible bonds, preference convertible shares)

6.2.2. Total number of securities under which they were assigned the preferential right of subscription

Total number of shares, under which the preferential right of subscription has been assigned, amounts to 848,312 ordinary (common) shares.

6.2.3. Number of the new issue shares under which the preferential right of subscription has been realized

Total number of the XX issue of shares, under which the preferential right of subscription has been realized, amounts to 72.000 shares

6.3. Tax obligations of the share holders

Property tax, and, in case the shares are sold at the Stock Exchange, the tax on assignment of absolute rights, as well as the capital income tax.

6.3.1.Income tax , transaction tax, profit tax, tax relief, tax incentives

Taxation of securities is regulated by the :Law on Property Taxes (’’Official Gazette of the RS“ No. 26/01, 80/02, 135/04) Law on the Citizens’ Income Tax (’’Offcial Gazette of the RS“ No. 24/01, 80/02, 135/04) Law on Corporate Income Tax (’’Official Gazette of the RS“ No.25/01, 80/02, 43/03, 84/04) Tax on absolute rights assignement- after the sale of shares. Tax payer, in case of the assignment of absolute rights, is the seller of shares. Prescribed tax rate amounts to 0,3%. Tax on absolute rights assignment is not subject to payment (Art. 31. of the Law) in the following cases: - when placing absolute rights in the capital of the shareholding company -when absolute rights are assigned for the purpose of settlement public revenue liabilities. Tax on inheritance and gift. Article 14. of the Law prescribes the obligation of paying taxes on inheritance and gift, on inherited securities, i.e., securities obtained as a gift. Tax rates are progressive and dependable on the tax base level. Tax on inhertiance and gift is not subject to payment (Article 21. of the Law) in the following cases: -in case of the first hereditory successor, merital partner, and a parent of the testator, i.e., the person receiving the gift who belongs to the first hereditory successors and a marital partner of the person making the gift. Capital income tax. Capital income tax payer is a natural person realizing the relevant income. Capital income tax accounts for 20%. Article 61. of the Law also prescribes that the dividend is subject to taxation, as wel as the capital income. Tax payer who had acquired securities prior to January 1994. is subject to capital income tax relief. Tax base is the difference between the purchase and sales value of securities adjusted in compliance with the provisions of the law.

6.4. Manner of settlement of possible disputes which

Commercial court in Belgrade.

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may arise between issuers and holders of securities, and the name of the court competent for settlement of disputes

7. TIME, PLACE AND TERM FOR SHARES SUBSCRIPTION

7.1. Corporate name, head office, address, and working hours of BDD/ bank and the term within which the subscription of shares can be made (separately state the term for subscription on the grounds of preferential right to subscription )

Subscription of shares is made in KOMERCIJALNA BANKA AD BEOGRAD each working day from 9.00 A.M. until 3.00 P.M., and on Saturdays from 9.00 A.M. until 12.00. (in Kikinda sub-branch, the subscription will be made from Monday to Friday in the period from 09.00 A.M. until 3.00 P.M.) in the following organizational parts:

No. Name of the branch

Name of the organizational part

Address

1. Beograd

Beograd-BG sub-branch

14, Svetog Save 14, Beograd

Beograd-DE sub-branch

Kralja Petra 19-21, Beograd

Beograd-61 sub-branch

Svetogorska 42 - 44, Beograd

Novi Beograd-23 sub-branch

YBC, Lenjinov bul. 10, Beograd

Beograd-28 sub-branch

Trg Nikole Pašića 2, Beograd

Zemun-N2 sub-branch Rajačićeva 2, Zemun

2. Zaječar

Zaječar-56 sub-branch

Nikole Pašića 25, Zaječar

Negotin-91 11 sub-branch

Trg Đorđa Stanojevića 11, Negotin

Knjaževac-N5 sub-branch

B. Radičevića 2, Knjaževac

Bor-72 sub-branch Zeleni Bulevar 4, Bor 3. Sombor Sombor-D2 sub-

branch Staparski put 14, Sombor

4. Subotica Subotica III-N9 sub-branch

Korzo 10, Subotica

Kanjiža-D7 sub-branch

Glavna ulica 16, Kanjiža

Senta-T6 sub-branch Glavni trg 8, Senta Bačka Topola-T5 sub-branch

M. Tita 57, Bačka Topola

5. Smederevo Smederevo 1-92 sub-branch

Karađorđeva 30, Smederevo

6. Jagodina Jagodina II-T1 sub-branch

Knjeginje Milice 24, Jagodina

7. Kraljevo Kraljevo II-79 sub- Trg Srpskih Ratnika

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branch bb, Kraljevo 8. Loznica Loznica II-P9 sub-

branch Gimnazijska 1, Loznica

9. Vršac Vršac-68 sub-branch Trg Save Kovačevića 2, Vršac

10. Užice Užice III-FM sub-branch

Petra Ćelovića 4, Užice

11. Novi Pazar Novi Pazar II-E4 sub-branch

Njegoševa 1, Novi Pazar

12. Kikinda Kikinda II-98 sub-branch

G. Drapšina 30, Kikinda

13. Niš

Niš V-GH sub-branch Episkopska 32, Niš Leskovac II-C7 sub-branch

Bul. Oslobođenja 92, Leskovac

14. Novi Sad

Novi Sad III-FC sub-branch

Bul. Mihajla Pupina 6, Novi Sad

Vrbas II-H6 sub-branch

M. Tita 49, Vrbas

Bačka Palanka-51 sub-branch

Trg Bratstva i jedinstva 30-32, B. Palanka

15. Čačak Čačak III-FK sub-branch

Župana Stracimira 23, Čačak

16. Šabac Šabac-73 sub-branch

Gospodar Jevremova 2, Šabac

17. Kragujevac

Kragujevac II-53 sub-branch

Kralja Petra 25, Kragujevac

Aranđelovac-D5 sub-branch

Kneza Miloša 212, Aranđelovac

18. Zrenjanin Zrenjanin II-G2 sub-branch

Trg Slobode 5, Zrenjanin

19. Požarevac Požarevac III-DD sub-branch

Moše Pijade 8, Požarevac

20. Sremska Mitrovica

S. Mitrovica-48 sub-branch

Kralja Petra 5-7, S. Mitrovica

Ruma-08 sub-branch

Poslovni centar bb, Ruma

Šid-EA sub-branch Karađorđeva 7, Šid21. Vranje Vranje II-58 sub-

branch Stefana Prvovenčanog 58, Vranje

22. Valjevo Valjevo-C2 sub-branch

Gradski trg bb, Valjevo

23. Proboj Priboj-R7 sub-branch

Meše Selimovića 1, Priboj

24. Kruševac Kruševac-A0 sub-branch

Trg fontana 1, Kruševac

The overall term for subscription of XX issue of shares will last for 90 days from the date stated in the public invitation for commencement of

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subscription and payment of shares. Concerning the shareholders having the preferential right of subscription, the deadline for subscription is 70 days from the date stated in the public invitation. Concerning the shareholders who used up the preferential right to subscription, as well as all other interested parties, the subscription deadline lasts from the 71.-st until 90.-th day from the date stated in the public invitation for commencement of subscription. Shareholders with the pre-emption right may exercise such right proportonally to their share in the existing capital of the issuer.

8. PLACE AND CONDITIONS FOR PAYING IN THE SHARES

8.1. Corporate name,head office, address, term within which the payment of shares can be made, as well as the working hours of the payingin bank;

Čačanska Banka ad, 1, Pivarska Str., Čačak. Overall term for paying in the XX issue of shares lasts 90 days from the date stated in the public invitation for the commencement of subscription and payingin. For the shareholders with the pre-emption right, the term is 70 days from the date stated in the public invitation. For the shareholders who used up the pre-emption right and for all other interested parties the paying in term lasts from the 71.-st until 90.-th day of the dater stated in the public invitation. Payments are received each working day during the working hours of the Bank from 8.00 A.M. until 4.00 P.M. Čačanska Banka ad Čačak places for payment Čačak Čačak Head Office Pivarska 1 Aranđelovac Aranđelovac branch Jadranska bb Beograd Beograd registered

branch Bul. Arsenija Čarnojevića 52a

Beograd Beograd branch Cara Dušana 78-80Gornji Milanovac

G. Milanovac branch Kneza Aleksandra 2

Jagodina Jagodina branch Nikčevićeva 24 Kragujevac Kragujevac branch Kneza Miloša 3 Kraljevo Kraljevo branch Trg Jovana Sarića 8Užice Užice branch Nikole Pašića 48Kruševac Kruševac branch Trg Kosturnice bbŠabac Šabac branch Karađorđeva 77Valjevo Valjevo branch Kneza Miloša 59a Paraćin Paraćin sub-branch Vojvode Mišića 13 Guča Guča sub-branch Republike 65 Požega Požega sub-branch Kralja Petra 31 Čačak Sub-branch 1 Skadarska 19 Čačak Sub-branch 2 Pivarska 1 Čačak Sub-branch 3 Nemanjina 32 Čačak Sub-branch 4 Mrčajevci

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Payment account for purchase of XX issue of shares opened with Čačanska Banka ad Čačak, is 908-15501-35 reference number 4030 0000/4 - RN/TIN of the PERSON WHO EFFECTS PAYMENT

8.2. Manner in which the allocation of more subscribed and paid in securities is made to the parties subscribing and paying in the securities;

Allocation of larger number of subscribed and paid in shares, in comparison to the offered number of shares, upon exercising the pre-emption rights, for the parties making the subscription and paying in of shares shall be made by proportional decrease in the number of subscribed and paid in shares.

8.3. Consequences of non payment or overdraft of payment term;

A person who does not pay in the subscribed shares or does not effect payment of subscribed shares after the expiry of the payment term for the XX issue of shares does not acquire the status of the Bank’s shareholder.

8.4. Number of securities that must be subscribed and paid in in order the sale is successfully completed (succes treshold)

43.200 (60% of offered shares)

8.5. Manner and term for returning paid in amounts in case of unsuccessful sale with the interest rate which is calculated for the paid in funds and the method of its computing

In case of the share issue failure, the Bank is obliged, within the term of seven days from the date of expiry of the subscription and paying in term, to return to the subscribers the paid in funds with the prescribed interest.

8.6. Name and head office of the party maintaining the registry and making the clearing and settlement of liabilities for securities intended to be issued (Central Registry)

Central Registry, Securities Depositary and Clearinghouse, 5, Trg Nikole Pašića Str., Beograd

9. SECURITIES MARKET 9.1. Name and head office of the organized

market, date of introduction of the same type of securities into the organized market within the last six months, stating the highest and the lowest realized price

Over-the–counter market of the BELGRADE STOCK EXCHANGE AD Beograd, Omladinskih brigada 1,; shares have been traded upon since August 17, 2006. From April 20, 2007. until October 20, 2007., 16.228 individual ordinary shares have been traded upon ( Din. 2,035,381,089 ) A concerns ordinary shares, the lowest price in the last six months was 114.000, while the highest was 150,000 (from April 20, 2004. until October 20, 2007.) (data are taken from the official Internet Site of Belgrade Stock Exchange)

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10. SUMMARY BASIC INFORMATION ON THE SHARES ISSUER

10.1. Date of decision making on the grounds of which the issuance of securities is made , as well as the name of the competent authority of the issuer that made such a decision

Share issue is made in compliance with the Decision on tthe XX Issue of Ordinary Shares of Komercijalna Banka ad Beograd by the public offer for the purpose of capital increase. Decision (number 17220/2) is made at the General Meeting of the Bank held on October 19, 2007.

10.2. Purpose of the funds collected by the securities issue;

Purpose of the funds which are collected by this share issue is the performance of operations from the Bank’s scope of activities: long-term and short-term corporate and retial lending and the realization of the Bank’s development plans.

10.3. Main data on business performance and issuer’s development plan

Summary results realized in 2006. Komercijalna banka ad Beograd has realized the scope of operations of almost EUR 2 billion, with the increase of 43% in comparison to the previous year; the Bank’s capital has incresed by 78% and together with reserves it exceeded EUR 200 million, making our Bank the second Bank of such size in our market; deposits amounted to almost EUR 1 billion, and the realized operating income amounted to almost EUR 11 million, which is by 68% more than in the preious year. Qualitative indicators have also been significantly improved: profit and equity ratio (ROE) from 7,62% to 9,71%, return on assets rate (ROA) from 0,69% to 0,84%, capital adequacy from 15,37 to 17,28, income and expences ratio, etc. Activities which wil, in the future, be the Bank’s priorities are the strengthening of the capital base, overall introduction of new organizational structure, improvement of funds management quality, implementation of new IT infrastructure, introduction of new banking products, development of investment banking by way of establishment of mutual fund.

11. BROKER-DEALER COMPANY AND/OR AUTHORIZED BANK PARTICIPATING IN THE PUBLIC

OFFER ORGANIZATION

11.1. Corporate name and head office of the agent, i.e., underwriter of the issue taking part in organizing securities issuance;

Komercijalna Banka ad Beograd independently organizes public offer of XX issue of shares

11.2. Corporate name, head office of the principal organizor of issuance, in case more persons take part in the issuance organization;

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11.3. Type of agreement on organizing the issuance and type of agent’s obligation , i.e., underwriter of the issue;

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11.4. Amount of compensation which the agent, i.e., -

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issuance underwriter charges to the issuer for the services related to the organization of the issue,

11.5.The agent’s liability, i.e., the issuance underwriter. -

B) MAIN PROSPECTUS’’ Prospectus on securities issuance , with the data contained in the appendix thereof, comprises all material data for enabling the investors to make an objective evaluation of the financial and legal position of the securities issuer, as well as the evaluation of rights and liabilities arising from the resepective securities“. ’’Prospectus on securities issuance does not contain data which may give rise to the adverse opinion of the investor regarding the securities issuer, securities intended to be issued, and already issued securities“. 1. DATA ON THE SHARES ISSUER 1.1. BASIC DATA

1.1.1. Name, head office, address,Registry and Tax Identifiaction No.;

KOMERCIJALNA BANKA AD BEOGRAD, Svetog Save 14, 11000 Beograd, RN-07737068, TIN- SR 100001931

1.1.2. Number and date of registration with the Serbian Business Registers Agency

The subscription with the Serbian Business Registers Agency was made on April 14, 2005., and the decision number is BD 10156/2005

1.1.3. Date of establishment Komercijalna Banka ad, Beograd operates, with the present name, since April 12, 1995

1.1.4. Position of the issuer within the group

1.1.4.1. Realation with other companies;

Komercijalna Banka ad Beograd has a status of the parent company for Komercijalna Banka ad Budva (as a related Bank) and for Komercijalna Banka ad Banja Luka (as a related Bank). Representative offices of Komercijalna Banka ad Beograd: -Representative office of Komercijalna Banka ad Beograd in Frankfurt (Executive Board made the Decision No. 17620 of September 28, 2007. that the Bank’s Representative Office in Frankfurt/Main shall be dissoluted on September 30, 2007. The procedure for dissolutrion of the representative office in FR of Germany is underway, upon completion of which the NBS shall be notified for the purpose of deleting the representative office from the Registry.) -Business unit of Komercijalna Banka ad Beograd in Frankfurt/Main, Zweigstelle fur Finanzdienstleistungen in Frankfurt am Main, operates at the address: Carol-Theodor-Reiffenstein-Platz 7 (Decision of the NBS No. 2533 of June 10, 2005. on giving approval for opening a business unit) -Representative office of Komercijalna Banae ad Beograd in Zagreb, (established under the Decision of the NBS No. 3932 of October 29, 2003. and the Decision of the HNB No. 132-020/04-04/ŽR April 2004.)

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1.1.4.2. The manner the issuer is related to other legal entities Share in the share capital of other legal entities

THE BANK’S SHARE IN THE CAPITAL OF OTHER BANKS AND COMPANIES IN THE COUNTRY, AS AT SEPTEMBER 30, 2007.

No. Identification number

Name of the company/the bank % of the share in the shareholders capital

1. 07144288 IMK 14. OKTOBAR AD Kruševac 11,13%

2. 07046898 Comp. Dunav osiguranje ado Beograd 10,11%

THE BANK’S SHARE IN THE CAPITAL OF OTHER BANKS AND COMPANIES ABROAD AS AT SEPTEMBER 30, 2007.

No. Identification number Name of the company/the bank % of the share in the

shareholders capital

1 02373262 KOMERCIJALNA BANKA AD BUDVA AFFILIATE 100%

2 11009778 KOMERCIJALNA BANKA AD BANJA LUKA 99,99%

3 90001752 EUROAXIS BANKA AD MOSKVA 10,37%

NOTE: The above table states the data on the Bank’s share in the shareholders capital of other Banks and companies amounting to more than 10%. The Bank has a share in the capital of other companies, but with the percentage ranging from 0 to 5%.

1.1.4.3. The grounds of the issuer’s participation in the management of other legal entities, i.e., the grounds of participation of other entities in the management of issuer’s legal entity;

Share in the shareholders capital of other legal entities, i.e., share of other legal entities in the share capital of Komercijalna Banka ad.

1.1.5. General enactments of the issuer

Place and date when the insight into the founders enactment or the statute or other general enactments of the issuer , together with the latest changes and amendments, can be made;

In the Head Office of the Bank, 14, Svetog Save Str., Beograd in the Legal Operations Division, from Monday to Friday in the period from 09.00 A.M. until 04.00 P.M., with the prior announcement.

1.2. ISSUER’S CAPITAL

1.2.1. Capital (data from the latest financial statement) 31.12.2006. (in Din. 000 )

1.2.1.1. Total capital; 15.994.553

1.2.1.2. Share capital (initial capital) 8.856.630

1.2.1.3. Issuance preimum 3.961.520

1.2.1.4. Own shares 164.410

1.2.1.5. Other assets 9.150

1.2.1.6. Reserves 1.193.290

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1.2.1.7. Revaluation reserves 769.267

1.2.1.8. Accumulated loss -

1.2.1.9. Accumulated gain 1.369.106

1.2.2. Issued shares

1.2.2.1. Number of issued ordinary shares, CFI code and ISIN number 848.312, CFI–ESVUFR, ISIN - RSKOBBE33594

1.2.2.2. Number of issued preference shares per classes, CFI code and ISIN number

37.351, CFI– EPNXAR, ISIN- RSKOBBE95171

1.2.2.3. Rights arising from shares, under types and classes;

Owners of preference shares have the following rights arising from shares: 1. priorities in realtion to ordinary shares concerning priorities

to dividend paymnts, 2. priority of collection at the Bank’s liquidation; 3. other rights stipulate by the law and decision on issue of shares.

Owners of common shares have the following rights arising from shares: 1. right of access to legal enactments and other documents

and information of the company; 2. right to participate in the work of the Bank’ s General

Meeting, in the manner and under conditions stipulated by the Statute;

3. right to vote in the General Meeting of the Bank so as that one share always entitles the right to one vote, in the manner and under conditions stipulated by the Statute;

4.right to divident paymnet, after paymnets of dividends for all issued prefernce shares in the full amount is effected;

5. right to participate in the allocation of liquidation surpluss upon liquidation fo the Bank, and after effecting payments to creditors and shreholders of preference shares;

6. preferential right of acquisition of shares from new issues and convertible bonds;

7. right of disposal with shares, pursuant to the law; 8. other rights pursuant to the law and the decision on the

share issue.

1.2.2.4. Manner of share issuance; By public offer, without public offer, debt-equity swap, without public offer for the known professional investor and by Decisions of the Bank’s General Meeting

1.2.3. Changes in capital

1.2.3.1.The provisdions of general enactments of the issuer related to changes in capital are stated

Article 14., item 4.of the Statute, Article 9. of Articles of Association of Komercijalna Banka ad Beograd

1.2.3.2. Description of changes in the initial capital, revaluation and other reserves, subscribed, but not paid in capital, repurchased own shares, issuance premium, own shares, total capital (Data are given for the previous threes years) (in Din. 000);

2004 2005 2006

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Capital 6.285.596 8.941.969 15.994.553

- share capital 5.364.783 6.735.850 8.856.630

- issuance premium - - 3.961.520

- own shares - - 164.410

- other assets 7.980 9.150 9.150

- reserves 474.449 843.290 1.193.290

-revaluation reserves - 607.495 769.267

-accumulated profit 438.384 746.184 1.369.106

1.2.3.3. Important elements of the issuer’s founders enactment on the granted capital, date of making the decision and the amount of capital increase -

1.2.3.4. Material elements of the founder’s enactment, date of making the decision on conditional capital increase, amount of capital increase, number and type of issued shares, with the detailed description of conditions for their issuance

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1.2.4. Own shares

1.2.4.1. number and percentage of own shares as per the class; On December 31, 2006., the number of own shares amounted to 16.441 shares; 1,93808 % (from the total no. of ordinary shares) On October 25, 2007., the number of own shares amounts to 12.060 individual shares 1,42165% (from the total number of ordinary shares)

1.2.4.2. time and reason of aquisition; By liquidation of "1+2" company, Frankfurt, FR of Germany, the Bank acquired, on October 2, 2006., as the legal successor, 16,441 individual ordinary shares. Until October 2007., the Bank allienated, by offer for sale (allienation) pro rata and sale on the Stock Exchange, allienated 4.381 shares.

1.2.4.3. data on the portfolio of own shares; -

1.3. BOOK-KEEPING VALUE OF SHARES AND ISSUER’S SECURITIES

1.3.1. Book-keeping value of shares

1.3.1.1. The latest computed book-keeping value of shares as per classes and dates of determining the

15

relevant value, and in case the latest book-keeping value of shares is calculated according to data without the auithorized auditor’s report, the book-keeping value of shares determined on the basis of revised data, should also be stated ; a short descirpition of methods used for calcultaion of boook-keeping value of shares;

Book-keeping value of shares, uder finacial statements for 2006. acknowledged by the independent auditor, is calculated by dividing total capital with the total number of issued shares. Book-keeping value of shares amounts to Din. 18.059,41.

1.3.2. Issuer’s securities trading

1.3.2.1. Organized market for trading the issuer’s shares;

Belgrade Stock Exchange ad Beograd over-the- counter market

1.3.2.2. Time prprovided for trading with these securities;

As per the Rule Book of Belgrade Stock Exchange

1.3.2.3. Graffic presentation of daily price fluctuations and transation volume in the previous six months – whereas the x axes represents the date, and y axis stands for the price, i.e. transaction volume;

KMBN (price) KMBN (volume)

Presentation of daily price fluctuations and transactions volume for ordinary voting right shares.

16

Presentation of daily price fkuctuations and transactions volume for preference shares.

1.4. SHARE HOLDERS

Ordinary Shares

1.4.1. Name/corporate name of the holder

Number of voting right shares

% of voting right shares

REPUBLIC OF SERBIA 341.965 40,31123EBRD LONDON 212.078 25,0000IBT 42.159 4,96975JUGOBANKA AD in bankruptcy 32.160 3,79106

INVEJ DOO 31.887 3,75888

COMP. DUNAV OSIGURANJE ADO 30.371 3,58017

EVROPA OSIGURANJE AD in bankruptcy 26.000 3,06491

STANKOM CO. 13.711 1,61627KOMERCIJALNA BANKA AD 12.060 1,42165RAIFFEISEN ZENTRALBANK 6.635 0,78214

(The Table discloses data for entities holding more than 5% of voting right shares or for 10 largest shareholders with the voting right.)

1.4. SHARE HOLDERS

Preference Shares

1.4.1. Name/corporate name of the holder

Number of preference shares

% of preference shares

BALORDA BRANISLAV 7.060 18,90177

CUSTODY ACCOUNT 3.819 10,22463PRIVREDNA BANKA ZAGREB DD 1.859 4,97711

POLITIKA AD 1.824 4,88340

JUGOBANKA AD in bankruptcy 1.809 4,84324 BOJANIĆ SOFIJA 1.744 4,66921HYPO ALPE-ADRIA-BANK AG 1.556 4,16589PAVLOVIĆ JOVICA 1.554 4,16053STEVE FOOD DOO 1.402 3,75358JP SRBIJAGAS NOVI SAD 1.040 2,78440

Data sources: CENTRAL REGISTRY, CENTRAL SECURITIES DEPOSITORY AND CLEARINGHOUSE of

17

October 5, 2007.

2. BUSINESS ACTIVITIES, PROPERTY AND OTHER LIABILITIES OF THE ISSUER

2.1. BUSINESS ACTIVITIES OF THE ISSUER

In case the issuer holds the position of a parent company, together with the data on the issuer, the same data for related companies are also given (with the issuer holding 25% and more share in the initial capital) together with the corporate name, head office, identification number of the related company and the percentage of share in capital and decision making the parent company holds in the related company;

Since December 31, 2006., Komercijalna Banka ad Beograd holds the status of the parent company in relation to Komercijalna Banka ad Budva and Komercijalna Banka ad Banja Luka affiliates. Komercijalna Banka ad Budva, IN-02373262, Podkošljun bb, Budva, Montenegro affiliate. Komercijalna Banka ad Beograd has 100% of share in the shareholders capital of Komercijalna Banka ad Budva affiliate. The Bank’s affiliate in Budva, as the independent unit, operates since March 2003. and upon obtaining the approval from the Central Bank of Montenegro. Development policy and strategy of the affiliate, set by the General Meeting of the Shareholders of the Affiliate, have been approved by the Central Bank of Montenegro. Komercijalna Banka ad Banja Luka, TIN-4950128530005, Veselina Masleše 6, Banja Luka. Komercijalna Banka ad Beograd has 99,99% share in the shareholders capital of Komercijalna Banka ad Banja Luka. Komercijalna Banka ad Banja Luka operates since the end of 2006., and upon obtaining the approval from the competent authorities of the Rebublic of Srpska and Federation of Bosnia and Herzegovina. Strategy and business policy is determined by the shareholders of the Bank pursuant to legal regulations of the Federation of Bosnia and Herzegovina.

2.1.1. Main scope of activities

2.1.1.1. Name and code of the main activity; 065121-banking organization

2.1.2. Operating income

2.1.2.1. Value of the operating income under which the issuer generates the largest income for the previous three years;

Din. 000 2004

Din. 000 2005

Din. 000 2006

Interest income 3.054.730 5.302.228 6.548.498

Fees and commmisions income 2.013.116 2.610.575 2.632.557 Dividends and share income 56.355 21.774 76.107Other operating income 1.364.384 854.566 3.351.956Income generated from the changes in property value and liabilities 784 2.561.679 1.577.197

Extraordinary income 111.384 - - Total: 6.600.753 11.350.822 14.186.315

18

2.1.3. Market position

2.1.3.1. Estimation of the issuer’s share on the commodity and services market as per the issuer’s activities; main competitors on the respective market and estimation of their market share;

According to the NBS data, and under the criteria of the total balance sheet assets as at June 30, 2007., Komercijalna Banka ad takes the fourth position, i.e., accounts for the 8,02% of the total balance sheet assets of all banks performing operations on domestic market. Major competitors, as per the criteria of the total balance sheet assets, are Hypo Alpe-Adria-Bank ad, Banca Intesa ad, Raiffeisen Bank ad, AIK Bank, at al. As per the business network criteria, the Bank’s competitors are the banks which also have developed business network.

2.1.4. Operations performed out of head office

2.1.4.1. Name of the place, except for the issuer head office, where the issuer performs its activities – organization and business units, and representative offices;

THE BANK’S BUSINESS NETWORK

No. Name of the organizational part ADDRESS HEAD OFFICE OF THE BANK – Bank’s

Divisions Svetog Save 14, Svetogorska 42-44, Kralja Petra I 19-21, Makedonska 29 (BEOGRAD)

Retail Operations Division Kralja Petra 19-21

Head Office Kralja Petra 19-21

I Belgrade Branch Svetogorska 42-44

Branch Head Office Svetogorska 42-44

1 Svetog Save 14 sub-branch Svetog Save 14

2 Makenzijeva 65 sub-branch Makenzijeva 65

3 Brankova 34 sub-branch Brankova 34

4 Ljermontova 12a sub-branch Ljermontova 12a

5 Bulevar Kralja Aleksandra 191 sub-branch Bulevar Kralja Aleksandra 191

6 Bulevar AVNOJA 104 sub-branch Bulevar AVNOJ-a 104, SIV II

7 Institut „Vinča“ sub-branch Institut Vinča, Mike Alasa bb

8 Kneza Višeslava sub-branch Kneza Višeslava 118

9 Luke Vojvodića sub-branch Luke Vojvodića 77a

10 Vojislava Ilića 62 sub-branch Vojislava Ilića 62

11 Blagoja Parovića 25a sub-branch Blagoja Parovića 25a

12 Batajnica sub-branch Majora Z.Radosavljevića 216-218

13 Savska 35 sub-branch Savska 35

14 YUBC I sub-branch YU biznis centar I, Bul.Mihajla Pupina 10

15 Knez Mihajlova 35 sub-branch Knez Mihajlova 35

16 Bulevar Mihajla Pupina 2/SIV I sub-branch Bul.Mihajla Pupina 2, SIV I

17 Trg Nikole Pašića 2 sub-branch Trg Nikole Pašića 2, Igumanova palata

18 Kneza Miloša 83 sub-branch Kneza Miloša 83

19 Despota Stefana 107 sub-branch Despota Sefana 107

20 Bačvanska 14 sub-branch Bačvanska 14

21 Despota Stefana 24 sub-branch Despota Sefana 24

22 Zemun I sub-branch Zemun, Cara Dušana 196

23 Bežanijska kosa I sub-branch Ljubinke Bobić 14

24 Čukarica sub-branch Šumadijski trg 2

25 Trg Nikole Pašića 7 sub-branch Trg Nikole Pašića 7

19

26 Svetogorska 42-44 sub-branch Svetogorska 42-44

27 Zemun II sub-branch Omladinski trg 2

28 Kneza Miloša 101 sub-branch Kneza Miloša 101

29 Cvijićeva 93A sub-branch Cvijićeva 93a

30 Palilula sub-branch Mije Kovačevića 15

31 Ruzveltova sub-branch Ruzveltova 45

32 Vojvode Stepe sub-branch Vojvode Stepe 259

33 Bulevar Kralja Aleksandra sub-branch Bulevar Kralja Aleksandra 251

34 Andre Nikolića sub-branch Andre Nikolića 3

35 Ustanička sub-branch Ustanička 63

36 Vojvode Stepe sub-branch Vojvode Stepe 110

37 27.marta sub-branch 27. marta 7-13

38 Ustanička sub-branch Ustanička 194

39 Jurija Gagarina sub-branch Jurija Gagarina 221

40 Bežanijska kosa II sub-branch Bežanijska Kosa II, Ljubinke Bobić 28

41 Zemun III sub-branch Zemun, Prvomajska 8

42 Zemun IV sub-branch Zemun, Rajačićeva 2

43 Bul.Umetnosti sub-branch Bulevar Umetnosti 16 - JAT

44 Svetogorska II sub-branch Svetogorska 42-44

45 Bul. Mihajla Pupina 165 sub-branch N.Bgd, Bulevar Mihajla Pupina 165

46 Kneza Miloša 4 sub-branch Kneza Miloša 4

47 Voždovac sub-branch Voždovac, Stevana Prvovenčanog 1

48 Bul. Zorana Đinđića sub-branch Bul. Zorana Đinđića 45a

49 Vojvode Šupljikca sub-branch Vojvode Šupljikca 51

50 Kralja Milutina sub-branch Kralja Milutina 53

51 Aerodrom „Beograd“sub-branch Aerodrom Beograd

52 Petra Martinovića sub-branch Petra Martinovića 37

53 Kralja Petra 1 sub-branch Kralja Petra 19-21

54 Kralja Petra 2 sub-branch Kralja Petra 19-21

55 Tošin bunar sub-branch Tošin bunar 159

56 YUBC II sub-branch YU biznis centar II,Bul.Mihajla Pupina 10D

57 Marije Gregoran sub-branch Marjane Gregoran 56

58 PTC Banjica sub-branch PTC Banjica, Paunova 24

59 Beli Potok sub-branch Beli Potok, Bul. JNA 38

60 Zemun V sub-branch Zemun, Altina, Dobanovački put 58

61 Makedonska sub-branch Makedonska 4

62 Makedonska sub-branch Makedonska 32

63 Makedonska 29 sub-branch Makedonska 29

64 Bul. Kralja Aleksandra sub-branch Bul.Kralja Aleksandra 328

65 Palmira Toljatija sub-branch Stari Merkator, Palmira Toljatija 5

66 Obrenovac I sub-branch Obrenovac, Karađorđeva 10

67 II sub-branch Obrenovac, Vuka Karadžića 56

68 Padinska Skela sub-branch Padinska skela, Industrijsko naselje bb

69 Sopot sub-branch Sopot, Kosmajski trg 14

70 Mladenovac sub-branch Janka Katića 10

71 Umka sub-branch Umka, 13. Oktobar 37

72 Barajevo sub-branch Barajevo, Svetosavska 20

73 Lazarevac sub-branch Lazarevac, Karađorđeva 28

74 Krnjača sub-branch Zrenjaninski put 83a

75 Kožičanskog 2 sub-branch Kožičanskog 2

76 Železnik sub-branch Železnik, M.Tita 2

20

77 Stara Pazova sub-branch Stara Pazova, Svetosavska 2

78 Pančevo sub-branch Nikole Tesle 9

79 Kovačica sub-branch Kovačica, Masarikova 65

80 Crepaja sub-branch Crepaja, Trg oslobođenja 5

81 Kosovska Mitrovica sub-branch Kosovska Mitrovica, Kralja Petra I 33

82 Štrpce sub-branch Hotel „Narcis“, Štrpce, Brezovica

83 Leposavić sub-branch Leposavić, 29.novembra 42a

84 Zubin Potok sub-branch Zubin Potok, Vojvode Rada bb

85 Ranilug sub-branch Ranilug

86 Zvečan sub-branch Zvečan, Kralja Milutina 52

87 Gračanica sub-branch Gračanica

88 Šilovo sub-branch Selo Šilovo

89 Dragaš sub-branch Dragaš

II Kruševac Branch Trg oktobarske revolucije 1

Branch Head Office Trg oktobarske revol. br.1.

90 Sub-branch head office Kruševac Trg oktobarske revol. br.1.

91 Sub-branch Kruševac I Pana Đukića br. 30.

92 Sub-branch Kruševac II Vece Korčagina br. 26.

93 Sub-branch Kruševac IV JNA br. 8.

94 Sub-branch Kruševac V Trg rasinskih partizana b.b.

95 Sub-branch Aleksandrovac I 29. Novembra br. 98.

96 Sub-branch Aleksandrovac II Trg oslobođenja b.b.

97 Sub-branch Brus Kralja Petra I b.b.

98 Sub-branch Varvarin Marina Marinovića br. 87.

90 Sub-branch Ražanj Partizanska br. 79.

91 Sub-branch Ćićevac Karađorđeva br. 96.

92 Sub-branch Veliki Šiljegovac 37204 Veliki Šiljegovac

93 Sub-branch Aleksinac Drakčeta Milovanovića br.6.

94 Sub-branch Trstenik Vuka Karadžića br. 46.

95 Sub-branch STOPANJA 37242 Stopanja

III Niš Branch Episkopska 32

Branch head Office Episkopska 32

96 Sub-branch Niš I s Nikole Pašića 41

97 Sub-branch Niš II Nade Tomić 14

98 Sub-branch Niš III Vojvode Tankosića 15

99 Sub-branch Niš IV Nikole Pašića 24

100 Sub-branch Niš V Episkopska 32

101 Sub-branch Leskovac I Leskovačkog odreda 1

102 Sub-branch Leskovac II Bulevar oslobođenja 92

103 Sub-branch Vlasotince Trg oslobođenja 6

104 Sub-branch Gradin Granični prelaz

105 Sub-branch Pirot I Jevrejska 15

106 Sub-branch Pirot II Trg oslobođenja bb

107 Sub-branch Pirot III Srpskih vladara 82

108 Sub-branch Kuršumlija Proleterskih brigada bb

109 Sub-branch Prokuplje Ratka Pavlovića bb

110 Sub-branch Medveđa Jablanička 61

111 Sub-branch Lebane Cara Dušana 12

112 Sub-branch Blace Karađorđeva 197

113 Sub-branch Babušnica Živojina Nikolića Brke 5

21

114 Sub-branch Sokobanja Aleksandra Markišića 11

115 Sub-branch Žitorađa Vojvode Mišića 1/3

116 Sub-branch Merošina Cara Lazara 29

117 Sub-branch Svrljig Dušana Trifunca 2

IV Čačak Branch Železnička bb

Branch Head Office Železnička bb

118 Sub-branch Čačak I Kuželjeva 20

119 Sub-branch Čačak II TC Vavilon, Železnička bb

120 Sub-branch Čačak III Župana Stracimira 23

121 Sub-branch Čačak IV-Autočačak Konjevići bb

122 Sub-branch Guča Republike 68

123 Sub-branch Lučani Bulevar JNA bb

124 Sub-branch Gornji Milanovac Vojvode Milana 2

125 Sub-branch Mrčajevci Radomira Novakovića bb

126 Sub-branch Ivanjica Javorska 1

V Novi Sad Branch Trg Slobode 4

Branch Head Office Trg Slobode 4

127 Sub-branch Novi Sad I Kralja Petra Prvog 11

128 Sub-branch Novi Sad II Trg slobode 4

129 Sub-branch Novi Sad III Bul.Mihajla Pupina 6

130 Sub-branch Bečej I Borisa Kidriča 88

131 Sub-branch Bečej II Moše Pijade 2

132 Sub-branch Vrbas I Narodnog fronta 70

133 Sub-branch Vrbas II Maršala Tita 49

134 Sub-branch Bačka Palanka Trg bratstva i jedinstva 30-32

135 Sub-branch Futog Cara Lazara 28

136 Sub-branch Inđija Vojvode Stepe 8

137 Sub-branch Bač Maršala Tita 2

VI Novi Pazar Branch Njegoševa 1

Branch Head Office Njegoševa 1

138 Sub-branch Novi Pazar I Šabana Koče 71

139 Sub-branch Novi Pazar II Njegoševa 1

140 Sub-branch Raška II Nemanjina 10

141 Sub-branch Sjenica Kej bb

142 Sub-branch Tutin Ferhadija 13

VII Kragujevac Branch Kneza Miloša 3

Branch Head Office Kneza Miloša 3

143 Sub-branch Kragujevac I Trg Slobode 3

144 Sub-branch Kragujevac II Kneza Miloša 6

145 Sub-branch Kragujevac III Kneza Miloša 3

146 Sub-branch Aranđelovac Knjaza Miloša 212

147 Sub-branch Topola Bul.Kralja Aleksandra I 26

148 Sub-branch Lapovo Kralja Petra I 4

149 Sub-branch Batočina Kralja Petra 64

VIII Valjevo Branch Gradski trg bb

Branch Head Office Gradski trg bb

150 Sub-branch Valjevo I Gradski trg bb

151 Sub-branch Valjevo II Uzun Mirkova bb

152 Sub-branch Osečina Karađorđeva 141

153 Sub-branch Mionica Tike Marića 15

154 Sub-branch Lajkovac Vojvode Mišića 84

22

155 Sub-branch Ljig Vojvode Mišića bb

156 Sub-branch Ub Kralja Petra I br.2

157 Sub-branch Gornja Toplica Hotel Vrujci

IX Šabac Branch Gospodar Jevremova 2

Branch Head Office Gospodar Jevremova 2

158 Sub-branch Šabac Gospodar Jevremova 2

159 Sub-branch Vladimirci Svetog Save bb

160 Sub-branch Koceljeva Nemanjina 95

161 Sub-branch Prnjavor Arčibalda Rajsa bb

X Subotica Branch Korzo 10

Branch Head Office Korzo , 10

162 Sub-branch Subotica I Segedinski put 45

163 Sub-branch Subotica II Korzo , 5

164 Sub-branch Subotica III Korzo , 10

165 Sub-branch Kelebija Granični prelaz

166 Sub-branch Kanjiža Glavna ulica, 16

167 Sub-branch Horgoš Granični prelaz

168 Sub-branch Bačka Topola Maršala Tita 57

169 Sub-branch Senta Glavni trg 8

XI Požarevac Branch Moše Pijade 2

Branch Head Office M.Pijade 2

170 Sub-branch Požarevac I M.Pijade 2

171 Sub-branch Požarevac II M.Pijade 8

172 Sub-branch Požarevac III M.Pijade 8

173 Sub-branch Žabari Kneza Miloša 56

174 Sub-branch Petrovac Srpskih Vladara 240

175 Sub-branch Veliko Gradište Kneza Lazara 47

176 Sub-branch Kučevo Svetog Save 87

177 Sub-branch Golubac Golubački trg 1

178 Sub-branch Žagubica Trg J.Šerbanovića 1

179 Sub-branch Kostolac Trg B.Jedinstva 1

XII Smederevo Branch Karađorđeva 28

Branch Head Office Karađorđeva 28

180 Sub-branch Smederevo I Karađorđeva 30

181 Sub-branch Smederevo II Karađorđeva 37

182 Sub-branch Smederevo III Šalinački put bb

183 Sub-branch Kovin Vojvođanska 5

184 Sub-branch Grocka Srpsko grčkog prijateljstva 1

XIII Loznica Branch Gimnazijska 1

Branch Head Office Gimnazijska 1

185 Sub-branch Loznica I Kneza Miloša bb

186 Sub-branch Loznica II Gimnazijska 1

187 Sub-branch Banja Koviljača I Maršala Tita bb

188 Sub-branch Banja Koviljača II Park 4

189 Sub-branch Mali Zvornik Kralja Petra I 37

190 Sub-branch Krupanj Mačkov kamen 1

XIV Jagodina Branch Kneginje Milice 24

Branch Head Office Kneginje Milice 24

191 Sub-branch Jagodina I Kneginje Milice 15

192 Sub-branch Jagodina II Kneginje Milice 24

193 Sub-branch Svilajnac Ustanička 1

23

194 Sub-branch Paraćin Tome Živanovića

195 Sub-branch Despotovac Kralja Milana 14

196 Sub-branch Ćuprija Miodraga Novakovića bb

197 Sub-branch Velika Plana Miloša Velikog 61

198 Sub-branch Smed.Palanka I Srpskog ustanka 5

199 Sub-branch Rekovac Kralja Petra I 44

200 Sub-branch Krnjevo Bulevar Oslobođenja 1b

XV Filijala Kraljevo Trg srpskih ratnika bb

Sedište Filijale Trg srpskih ratnika bb

201 Sub-branch Kraljevo I Vojvode Putnika 3

202 Sub-branch Kraljevo II Milosa Velikog 31

203 Sub-branch Kraljevo III Trg srpskih ratnika bb

204 Sub-branch Vrnjačka Banja Nemanjina 11

205 Sub-branch Ušće 23 novembra bb

XVI Priboj Branch Meše Selimovića 1

Branch Head Office Meše Selimovića 1

206 Priboj sub-branch Meše Selimovića 1

207 Nova Varoš sub-branch Oslobodilaca 1

208 Prijepolje sub-branch Stara centrala bb

XVII Užice Branch Dimitrija Tucovića 151

Branch Head Office Dimitrija Tucovića 151

209 Užice I sub-branch Dimitrija Tucovića 151

210 Užice II sub-branch Nade Matić 8

211 Sub-branch Užice III Petra Ćelovića 4

212 Sub-branch Požega Nikole Pašića 2

213 Sub-branch Bajina Bašta Svetosavska 30

214 Sub-branch Zlatibor TR Centar "Brvnara" bb

215 Sub-branch Arilje Svetog Ahilija 20

216 Sub-branch Kosjerić Karađorđeva 41

XVIII Sremska Mitrovica Branch Kralja Petra I 5-7

Branch Head Office Kralja Petra I 5 - 7

217 Sub-branch Srem.Mitrovica Kralja Petra I 5 - 7

218 Sub-branch Ruma Poslovni centar bb

219 Sub-branch Batrovci Granični prelaz

220 Sub-branch Šid Karađorđeva 7

XIX Vranje Branch S.Prvovenčanog 58

Branch Head Office S.Prvovenčanog 58

221 Sub-branch Vranje I Matije Gupca 4

222 Sub-branch Vranje II S.Prvovenčanog 58

223 Sub-branch Bujanovac I K.Petrovića 12

224 Sub-branch Bujanovac II Karadjordjev trg bb

225 Sub-branch Vladičin Han Nikole Tesle 1

226 Sub-branch Surdulica Peti septembar 7

227 Sub-branch Preševo Save Kovačevića 2

228 Sub-branch Bosilegrad Georgi Dimitrova 73

229 Sub-branch Trgovište Maršala Tita 1

XX Zaječar Branch Nikole Pašića 25

Branch head Office Nikole Pašića 25

230 Sub-branch Zaječar Nikole Pašića 25

231 Sub-branch Negotin Trg Đorđa Stanojevića 1

232 Sub-branch Bor I Moše Pijade 5

24

233 Sub-branch Bor II Zeleni Bulevar 4

234 Sub-branch Knjaževac Branka Radičevića 2

235 Sub-branch Majdanpek Šaška 5

236 Sub-branch Donji Milanovac Kralja Petra 59

237 Sub-branch Boljevac Kralja Aleksandra 17/2

238 Kladovo sub-branch Kralja Aleksandra 42

XXI Zrenjanin Branch Trg Slobode 5

Branch Head Office Trg Slobode 5

239 Zrenjanin I sub-branch Beogradska bb

240 Zrenjanin II sub-branch Trg Slobode 5

241 Novi Bečej sub-branch Žarka Zrenjanina 4

242 Sečanj sub-branch Vožda Karađorđa bb

243 Žitište sub-branch Cara Dušana

XXII Sombor Branch Staparski put 14

Branch Head Office Staparski put 14

244 Sombor sub-branch Staparski put 14

245 Apatin sub-branch Srpskih vladara 2

246 Kula sub-branch Lenjinova 14

247 Crvenka sub-branch Moše Pijade 47

248 Odžaci sub-branch Knez Mihajlova 37

XXIII Vršac Branch Trg Save Kovačevića 2

Branch Head Office Trg Save Kovačevića 2

249 Vršac I sub-branch Trg Save Kovačevića 2

250 Vršac II sub-branch Anđe Ranković 14

251 Bela Crkva sub-branch Proleterska 4

XXIV Kikinda Branch Kralja Petra I 39

Branch Head Office Kralja Petra I 39

251 Kikinda I sub-branch Kralja Petra I 39

252 Kikinda II sub-branch Generala Drapšina 30

2.1.5. Special circumstances

2.1.5.1. Other material facts and circumstances related to the issuer performance, which may have influence on the data on issuer performance are also been stated;

-

2.1.6. Interruptions in business performance

2.1.6.1. Interruptions in the issuer’s operations in the previous three years as well as the reasons of interruptions have also been stated;

There were no interruptions in business performnace

2.2. PROPERTY AND LIABILITIES OF THE ISSUER

Together with the data on the issuer, in case the issuer holds the position of the parent company, the same data for the related companies are also been stated together with the name of the related company;

2.2.1. Real estates, facilities and equipment

25

2.2.1.1. Data on real estates, type, placeof location, surface covered, value of the relevant real estate, including the real estate given and/or taken in lease;

Name and type of land

Purpose of the land Location Land surface (m2 ) Property value in

000

-

FACILITIES OWNED BY KOMERCIJALNA BANKA AD BEOGRAD

Place Type (purpose) of the facility Address Surface of the

facility (m2)

Value of the property (current in Din.000)

BEOGRAD BUSINESS PREMISES Svetogorska 42 – 44 3.332,58 * BEOGRAD BUSINESS PREMISES Blagoja Parovića 25a 84,26

BEOGRAD BUSINESS PREMISES Vojvode Stepe 110 69,00+19,44

BEOGRAD BUSINESS PREMISES Makedonska 29 18.084,75

BEOGRAD BUSINESS PREMISES Toše Jovanovića 7 24,05 + 24,05

BEOGRAD BUSINESS PREMISES Makenzijeva (Maršala Tolbuhina ) 65 80,00

BEOGRAD BUSINESS PREMISES Palmira Toljatija 5 633,00+4,00

BEOGRAD BUSINESS PREMISES Kralja Petra 19 5.357,60

BEOGRAD BUSINESS PREMISES Pop Lukina 5 138,00

BEOGRAD BUSINESS PREMISES Nova Skojevska 77a (Luke Vojvodića 77a) 80,00

BEOGRAD BUSINESS PREMISES Kneza Miloša 83 139,39

BEOGRAD BUSINESS PREMISES 27. marta 7-13 85,52

BEOGRAD BUSINESS PREMISES Vojislava Ilića 62 75,55

BEOGRAD BUSINESS PREMISES Josipa Broza 216 and 218 Batajnica 32,39 i 32,39

BEOGRAD BUSINESS PREMISES Makedonska 32 70,00

BEOGRAD BUSINESS PREMISES Svetog Save 14 3.511,29

BEOGRAD BUSINESS PREMISES Vojislava Ilića 8 1/18 stana 33,65

BEOGRAD-ZEMUN BUSINESS PREMISES Prva pruga 7 32,00

BEOGRAD BUSINESS PREMISES Samjuela Beketa 5/15 84,25

BEOGRAD BUSINESS PREMISES Samjuela Beketa 5/22 57,14 KRUŠEVAC BRANCH BUSINESS PREMISES

Branch Management BUSINESS PREMISES Trg Oktobarske revolucije 1 2.958,74

VELIKI ŠILJEGOVAC BUSINESS PREMISES P.O. BOX 37204 117,12

BRUS BUSINESS PREMISES Residential building, business

premises P+4 (Address: Kralja Petra I bb)

140,15

26

KRUŠEVAC BUSINESS PREMISES Ul. JNA br.8 500,00 ALEKSANDROVAC ŽUPSKI

BUSINESS PREMISES Trg oslobođenja bb 165,00

ALEKSINAC BUSINESS PREMISES D.Milovanovića 6 133,00

ALEKSANDROVAC BUSINESS PREMISES 29.novembra 102 162,00

KRUSEVAC BUSINESS PREMISES Vece Korčagina 26 (in the real estate registry Vula Kačarevića) 124,00

TRSTENIK BUSINESS PREMISES In the residential- business

premises C-2 (Vuka Karadžića 46)

141,30 + 152,90

KRUŠEVAC BUSINESS PREMISES Druge dalmatinske prol.brigade bb (now: Kralja A.) 44,56

KRUŠEVAC BUSINESS PREMISES Trg Rasinskih partizana, object L4 (sada Trg Kosturnica bb) 431,51

VARVARIN BUSINESS PREMISES Blok E, Pensioners Club

residence ( Marina Marinkovića 87)

250,00

ĆIĆEVAC BUSINESS PREMISES Karađorđeva bb ( Ul. Karađorđeva 96) 105,44

KRUŠEVAC BUSINESS PREMISES Pana Đukića bb ( P.Đukića 30) 76,13 HOTEL MAXIMAL - JASTREBAC

BUSINESS PREMISES JASTREBAC 811 (3 objekta)

RAŽANJ BUSINESS PREMISES Partizanska 79 71,21

KRUŠEVAC BUSINESS PREMISES

Rasadnik 1, group 9a-D5 A part of the four rooms appartment -73.42

KRUŠEVAC BUSINESS PREMISES Residence Prnjavor II, building k-5/17 61,49

KRUŠEVAC BUSINESS PREMISES III srpske proleterske brigade 4/13

Three rooms appartment 69,41

NIŠ BRANCH BUSINESS PREMISES

NIŠ BUSINESS PREMISES Episkopska (D. Dimitrijevića) 32 410,41

VLASOTINCE BUSINESS PREMISES Trg oslobođenja 6 47,00

PIROT BUSINESS PREMISES Trg Dobrice Milutinovića bb 137,00

PROKUPLJE BUSINESS PREMISES Ratka Pavlovića Čička 23 155,00

SVRLJIG BUSINESS PREMISES Corner of D.Trifunca and Hadzićeve 128,00

GRADINA BUSINESS PREMISES border line 63,00

SREMSKA MITROVICA BRANCH

BUSINESS PREMISES

SREMSKA MITROVICA BUSINESS PREMISES Kralja Petra I 5-7 231,08

RUMA BUSINESS PREMISES Posl. centar bb 258,00

RUMA BUSINESS PREMISES Orlovićeva 4 66,50

NOVI SAD BRANCH BUSINESS PREMISES

VRBAS BUSINESS PREMISES Maršala Tita 49 420,00

BAČKA PALANKA BUSINESS PREMISES Trg bratstva i jedinstva 30-32 270,85

LOZNICA BRANCH BUSINESS PREMISES

MALI ZVORNIK BUSINESS PREMISES Kralja Petra I 38 86,20

ČAČAK BRANCH BUSINESS PREMISES

27

GUČA BUSINESS PREMISES Republike 65 95,70 ČAČAK BUSINESS PREMISES PTC Vavilon, Železnička bb 308,40

VRŠAC BRANCH BUSINESS PREMISES

VRŠAC BUSINESS PREMISES Trg Save Kovačevića br. 2 305,42 NOVI PAZAR BRANCH

BUSINESS PREMISES

NOVI PAZAR BUSINESS PREMISES Njegoševa 1 460,00

NOVI PAZAR BUSINESS PREMISES Stevana Nemanje bb 27,80

NOVI PAZAR BUSINESS PREMISES Kej skopskih žrtava 44 82,95 ZRENJANIN BRANCH

BUSINESS PREMISES

ZRENJANIN BUSINESS PREMISES Trg slobode 5 311,35

ZAJEČAR BRANCH BUSINESS PREMISES ZAJEČAR BUSINESS PREMISES Nikole Pašića 27 343,44 ZAJEČAR BUSINESS PREMISES Nikole Pašića 25 29,83

KNJAŽEVAC BUSINESS PREMISES Ali Agićeva 11 189,00

NEGOTIN BUSINESS PREMISES Trg Đ.Stanojevića 5 209,00 POŽAREVAC BRANCH

BUSINESS PREMISES

POŽAREVAC BUSINESS PREMISES

Moše Pijade 2 1.416,48 + 913 additionally constructed part

POŽAREVAC BUSINESS PREMISES Čede Vasovića 12 334,07 POŽAREVAC BUSINESS PREMISES M.Pijade 8 385,34 POŽAREVAC BUSINESS PREMISES Stari Korzo 36 183,00 KOSTOLAC BUSINESS PREMISES Trg bratstva i jedinstva 1 128,28

PETROVAC NA MLAVI

BUSINESS PREMISES Srpskih vladara 240 174,92

VELIKO GRADIŠTE

BUSINESS PREMISES Žike Popovića bb 137,00

KUČEVO BUSINESS PREMISES Svetog Save 87 143,76

GOLUBAC BUSINESS PREMISES Golubački trg 1 75,56

ŽAGUBICA BUSINESS PREMISES Maršala Tita 1 139,00

ŽABARI BUSINESS PREMISES Kneza Miloša 56 34,77

MALO CRNIĆE BUSINESS PREMISES - 48,35 ALEKSANDROVAC POŽAREVAČKI

BUSINESS PREMISES - 50,76

BRANIČEVO BUSINESS PREMISES - 21,08 SMEDEREVO BRANCH

BUSINESS PREMISES

SMEDEREVO BUSINESS PREMISES Karađorđeva 30 86,13 SMEDEREVO BUSINESS PREMISES Karađorđeva 37 168,13

JAGODINA BRANCH BUSINESS PREMISES

PARAĆIN BUSINESS PREMISES Tome Živanovića 5 112,00

VRANJE BRANCH BUSINESS PREMISES

VRANJE BUSINESS PREMISES Stevana Prvovenčanog 58 205,00

28

VRANJE BUSINESS PREMISES Stevana Prvovenčanog 68 99,00 BUJANOVAC BUSINESS PREMISES Trg Karađorđa Petrovića bb 130,00 ŠABAC BRANCH BUSINESS PREMISES

ŠABAC BUSINESS PREMISES Gospodar Jevremova 2 2.150,60 PRNJAVOR BUSINESS PREMISES 29.novembra 10 57,75 KOCELJEVA BUSINESS PREMISES Maršala Tita bb 106,00

ŠABAC BUSINESS PREMISES Kneza Miloša 11 16,13

VLADIMIRCI BUSINESS PREMISES Svetog Save 24 75,11

BOGATIĆ BUSINESS PREMISES Maršala Tita 2 95,89

KRALJEVO BRANCH BUSINESS PREMISES

KRALJEVO BUSINESS PREMISES Srpskih ratnika bb 229,19

PRIBOJ BRANCH BUSINESS PREMISES PRIBOJ BUSINESS PREMISES M.Selimovića (D.Jaukovića) 1 246,80

NOVA VAROŠ BUSINESS PREMISES 29.oktobra 9 (Trg oslobodilaca 1)

205,41

ABROAD BUSINESS PREMISES

MONTENEGRO BUSINESS PREMISES

Herceg Novi BUSINESS PREMISES Njegoševa br. 40 178,00

Budva APPARTMENT Nanaselje Potkošljun 59,26+ garage 23,80

GERMANY FRANKFURT APPARTMENT -- 85,46 + parking

4,59

Balance of the Bank’s property as at September 30, 2007.

* Real estate value owned by the Bank which has not been written off as at December 31, 2006., amounts to the total of Din. 6.425.657.000 . From December 31, 2006. until September 30, 2007., the total book-keeping value of real estates owned by the Bank was incresed for the value of purchased real estates. Purchasing value of new real estates of the Bank amounts to Din. 17.662.246. The Bank has also sold the real estates in the amount of Din. 197.337.008. As at September 30, 2007., the present book-keeping value of real estates owned by the Bank amounts to Din. 6.288.867.582.

29

REVIEW OF BUSINESS PREMISES TAKEN INTO LEASE BY KOMERCIJALNA BANKA AD BANJA LUKA FACILITIES OWNED BY KOMERCIJALNA BANKA AD BUDVA

Place Type (purpose) of the afcility Address Surface of the

facility (m2) Property value

Budva Business premises PC Podkošljun bb 265,00 -

Place Type (purpose) of the facility Address Surface of the

facility (m2) Value of the property

BANJA LUKA Business premises

Veselina Masleše 6 1.103,15 -

BANJA LUKA Business premises

Put Srsplih Branilaca 31 86,00

BANJA LUKA Business premises

Mladena Stojanovića 26 42,25

LAKTAŠI Business premises

Nemanjina bb 150,00

GRADIŠKA Business premises

Vidovdanska bb 154,17

TOPOLA Business premises

Nova Topola 120 38,00

BRČKO Business premises

Uzunovića 15 280,26

BIJELJINA Business premises

Jovana Dučića 3 67,00

TREBINJE Business premises

Dušanova 21 96,00

PALE Business premises

Dobrosava Jevđenića 155,00

JAHORINA Business premises

Trgovska 4 25,00

SARAJEVO Business premises

Vladimira Perića 10 110,00

VLASENICA Business permises

Ilije Biračanina bb 120,00

30

REVIEW OF BUSINESS PREMISES TAKEN INTO LEASE BY KOMERCIJALNA BANKA AD BEOGRAD

Place Type (purpose) of the premises Address Surface of the

facility (m2) Property value

BEOGRAD Business premises Trg Nikole Pašića 2-4 257,00 -

BEOGRAD-VINČA Business premises Mike Alasa bb 34,32 BEOGRAD Business premises Bul. Kralja Aleksandra 191-

193 70,00

BEOGRAD Business premises Bul. Lenjina 10d/VP 70,00 BEOGRAD Business premises Svetog Save 16-18 206,00 I 480,00 BEOGRAD Business premises Despota Stefana (29.

novembra) 24 158,74

BEOGRAD Business premises Bul. JNA 152 1.000,00 BEOGRAD Business premises Trg Nikole Pašića 7 363,00 OBRENOVAC Business premises Vlade Aksentijevića 10 33,00 i 26,00 OBRENOVAC Business premises Vuka Karadžića 56 246,72 BEOGRAD Business premises Ustanička 63 219,00 BEOGRAD Business premises Ul.Vojvode Stepe 61,00 BEOGRAD Business premises Ul. Ruzveltova br. 41 34,00 BEOGRAD Business premises Bul. Kralja Aleksandra br.

251 394,00

BEOGRAD Business premises Ul. Andre Nikolića br. 3 65,00 BEOGRAD Business premises Ul. Jurija Gagarina br. 221 97,00 BEOGRAD Business premises Ul. Ustanička br. 194 83,80 BEOGRAD Business premises Ul. prvomajska br. 8 105,85 BEOGRAD Business premises Ul. Ljubinke Bobić br. 28 107,63 BEOGRAD- Zemun Business premises Ul. Rajačićeva br. 2 400,98 BEOGRAD - JAT Business premises Bul. umetnosti br. 16a 179,00 BEOGRAD Business premises Ul. Kneza Višeslava br. 118 278,49 BEOGRAD Business premises Ul. Kralja Milutina br. 53 92,00 BEOGRAD - Žarkovo Business premises Ul. Titova br. 2 87,60 BEOGRAD Business premises Ul. Bore Markovića br. 27 70,50 BEOGRAD-Aerodrom Business premises 11180 Beograd 59 Ground floor and

the counter

BEOGRAD – N.Bgd Business premises Bul. Lenjina br. 10D 54,38 43,04

BEOGRAD - Krnjača Business premises Ul. Zrenjaninski put br. 83a 66,49 BEOGRAD Business premises Ul. Cvijićeva br. 93a 137,56

31

BEOGRAD Business premises Ul. Marijane Gregoran br. 56 94,54 BEOGRAD - TC Banjica

Business premises Ul. Paunova br. 24 92,80

BEOGRAD - Zemun Business premises Ul. partizanskih baza br. 1 330,00 BEOGRAD - Zemun Business premises Ul. partizanskih baza br. 15 330,00 BEOGRAD - Zemun Business premises Dobanovački put br. 58 29,72

and parking

BEOGRAD Business premises Ul. Makedonska br. 4 52,00 BEOGRAD Business premises Ul. Petra Martinovića br. 37 103,00 BEOGRAD Business premises Bul. Kralja Aleksandra br.

328 157,80

BEOGRAD Business premises Ul. Kralja Petra I br. 21 640,64 BEOGRAD Business premises Ul. Paunova br. 65/L2 636,04 BEOGRAD - Pad. Skela

Business premises Ul. Industrijsko naselje bb 106,25

BEOGRAD Business premises Šumadijski trg br. 2 50,00 BEOGRAD - N. Bgd. Business premises Bul. AVNOJ-a br. 45a 273,65 BEOGRAD Business premises Ul. Kneza Miloša br. 4 830,00 BEOGRAD Business premises Skladište RK Beograd 100,00 BEOGRAD Business premises Tošin bunar 159 427,00 GROCKA Business premises Vučka Milićevića 7a 72,58 BEOGRAD - B. Brdo Business premises Kozačinskog br. 2 134,14 CREPAJA Business premises Trg oslobođenja br. 5 48,05 KOVAČICA Business premises Ul. Masarikova br. 65 105,11 BARAJEVO Business premises (Ul. Svetosavska br. 20)

Ul. M. Vukovića 2 189,62

MLADENOVAC Business premises Ul. Janka Katića br. 10 86,10 STARA PAZOVA Business premises Ul. Svetosavska br. 2 130,00 UMKA Business premises Ul. 13. oktobar br. 37 60,00 LAZAREVAC Business premises Ul. Karađorđeva br. 28 72,00 PANČEVO Business premises Ul. Nikole Tesle br. 9 381,02 SOPOT Business premises Ul. Kosmajska br. 14 180,00 BEOGRAD Business premises Ul. Vojvode Šupljikca 51 175,00 NOVI BEOGRAD Business premises Ul. Goce Delčeva 36 163,00 BATAJNICA Business premises Majora Zorana

Radosavljevića 256 145,00

PETLOVO BRDO Business premises Serdar Janka Vukotića br.1a 105,00 BANJICA Business premises Paunova br. 9 70,00 BEOGRAD Business premises Cara Dušana 62-64 207,78 KRUŠEVAC Business premises Trg oktobarske revolucije br.

1 21,50

32

STOPANJA Business premises Stopanja 32,00 NIŠ Business premises Ul. Nikole Pašića br. 41 237,00 NIŠ Business premises Ul. Nikole Pašića br. 24 10,50 NIŠ Business premises Ul. Vojvode Tankosića br. 15 14,18 LESKOVAC Business premises Bul. Oslobođenja br. 92 372,52 MEDVEĐA Business premises (Ul. Jablanička br. 61)

Maršala Tita 45 129,50

LEBANE Business premises Ul. Cara Dušana br. 12 64,09 BLACE Business premises Ul. Karađorđeva br. 197 100,00 PIROT Business premises Ul. Srpskih vladara br. 82 10,00 SOKOBANJA Business premises Ul. A. Markišića br. 11 61,00 MEROŠINA Business premises Ul. Cara Lazara br. 29 31,50 ŽITORAĐA Business premises Ul. Vojvode Mišića br 1/3 29,50 BABUŠNICA Business premises Ul. Živojina Nikolića Brke br.

5 58,00

VALJEVO MIONICA OSEČINA

Business premises Gradski trg bb Ul. Tike Marića br. 15 Ul. Karađorđeva br. 141

168,80 142,00 68,00

LAJKOVAC Business premises (Ul. Vojvode Mišića br. 84) Ul. vojvode Mišića 100

125,37

LJIG Business premises Ul. Vojvode Mišića bb 139,00 UB Business premises Ul. Karađorđeva br. 71 260,00 OSEČINA Business premises Ul. Karađorđeva br.123 108,00 KRAGUJEVAC Business premises Ul. Kneza Miloša br. 3 169,63 KRAGUJEVAC Business premises Ul.Kralja Petra I br. 25 83,82 KRAGUJEVAC Business premises Ul. 19. oktobar br. 2 ARANĐELOVAC Business premises Ul. Kneza Miloša br. 212 60,00 TOPOLA Business premises Bul. Kralja Aleksandra br. 26 111,20 BATOČINA Business premises Ul. Kralja Petra br. 64 53,00 LAPOVO Business premises Ul. Kralja Petra br. 4 40,00 ČAČAK Business premises Ul. Kuželjeva br. 20 74,00 ČAČAK Business premises Ul. Železnička bb 40,59 ČAČAK Business premises Ul. Železnička bb 19,40 GORNJI MILANOVAC Business premises Ul. Vojvode Milana br. 2 144,00 LUČANI Business premises Ul. Jugoslovenske armije br.

6 87,00+ 7,5 of the windshield space

MRČAJEVCI Business premises Ul. Radomira Novakovića bb 40,00 IVANJICA Business premises Ul. Javorska br. 1 514,00 ČAČAK Business premises Ul. Župana Stracimira br. 23 330,92 GORNJI MILANOVAC Business premises Ul. Vojvode Milana br. 18 128,00

33

VLADIČIN HAN Business premises Ul. Nikole Tesle bb 105,00 VLADIČIN HAN Business premises Ul. Svetosavska br. 35 190,00 SURDULICA Business premises Ul. 5. septembra bb 122,15 PREŠEVO Business premises Ul. Save Kovačevića br. 2 60,00 BOSILEGRAD Business premises Ul. Georgija Dimitrova br. 74 87,13 TRGOVIŠTE Business premises Ul. M. Tita br. 1 80,00 BOR Business premises Zeleni bulevar br. 4 90,00 BOLJEVAC Business premises (Ul. Kralja Aleksandra br.

17/2) Ul. kralja Aleksandra 13

41,00

KNJAŽEVAC Business premises Ul. Branka Radičevića br. 2 105,00 KNJAŽEVAC Business premises Ul. Branka Radičevića br. 2 21,00 KLADOVO Business premises Ul. Kralja Aleksandra br. 42 59,40 KLADOVO Business premises Ul. 22. septembra 9 160,38 MAJDANPEK Business premises Ul. 27. marta br. 2 140,00 DONJI MILANOVAC Business premises Ul. Kralja Petra I bb 50,00 BOLJEVAC Business premises Kralja Aleksandra No. 20/1 140,00 ZAJEČAR Business premises Nikole Pašića bb parking space BOR Business premises Đorđa Vajferta 5 150,00 NOVI SAD Business premises Trg slobode No. 4 380,39

(prior to 01.03. 07 =394,22)

NOVI SAD Business premises Bul. Mihajla Pupina No. 6 383,76 BEČEJ Business premises Moše Pijade No. 2 100,00 BEČEJ Business premises Moše Pijade No. 2 100,00 FUTOG Business premises Ul. Cara Lazara br. 7

( Cara Lazara 28) 80,00

INĐIJA Business premises Vojvode Stepe br. 8 100,00 BAČ Business premises Trg M. Tita br. 2 87,50 NOVI SAD Business premises Bul. Mihajla Pupina br. 6 80 NOVI SAD Business premises Ložionička 10-12 122,81 NOVI PAZAR Business premises Šabana Koče br. 71 73,93 SJENICA Business premises Kej bb 71,00

42,00

TUTIN Business premises Ferhadija br. 13 102,00 SUBOTICA Business premises Korzo br. 10 933,59 KELEBIJA Business premises Border line SUBOTICA Business premises Korzo br. 5 116,00 KANJIŽA Business premises (Glavna ulica br. 16)

M. Tita 16 96,50

BAČKA TOPOLA Business premises Maršala Tita br. 57 103,00

34

HORGOŠ Business premises Border line ( loaction no. 46 )

10,07

SENTA Business premises Glavni trg br. 8 100,00 BAČKA TOPOLA Business premises Rade Končara br. 55 a 138,72 SMEDEREVO Business premises Karađorđeva br. 28 72,98 SMEDEREVO Business premises Šalinačka bb 27,50 KOVIN Business premises JNA br. 26 119,70 GROCKA Business premises Vučka Milićevića br. 7a 72,58 LEŠTANE Business premises Branislava Nušića 1 b 92,35 LOZNICA Business premises Gimnazijska br. 1 292,00 LOZNICA Business premises Kneza Miloša bb 100,00 BANJA KOVILJAČA Business premises Maršala Tita bb 96,00 BANJA KOVILJAČA Business premises Specijalna bolnica za rehab.

Park br. 4 10,21

KRUPANJ Business premises Mačkov kamen br. 1 81,68 JAGODINA Business premises Kneginje Milice 24 190,00 JAGODINA Business premises Ul. Kneginje Milice 24 190,00 JAGODINA Business premises Ul. Kneginje Milice br. 15 391,81 SVILAJNAC Business premises Ul. Ustanička br. 1 446,00 DESPOTOVAC Business premises (Ul. Kralja Milana br. 14)

Petra Drapšina bb 200,00

ĆUPRIJA Business premises Ul. M. Novakovića bb 176,66 VELIKA PLANA Business premises Ul. Miloša Velikog br. 61 150,00 SMEDEREVSKA PALANKA

Business premises Ul. I srpskog ustanka br. 53 173,29

REKOVAC Business premises Ul. Kralja Petra I br. 44 65,50 KRNJEVO Business premises Bul. oslobođenja br. 1b 7,00 VELIKA PLANA Business premises Kralja Petra I 44 9,71 PRIJEPOLJE Business premises (Ul. Stara Centrala bb)

Centrala C-2 76,45

KRALJEVO Business premises Ul. Miloša Velikog br. 31 116,98 KRALJEVO Business premises Ul. Srpskih ratnika bb 964,00 VRNJAČKA BANJA Business premises Ul. Nemanjina br. 11 90,00 UŠĆE Business premises Ul. 29. novembra bb 110,15 UŽICE Business premises Ul. Dimitrija Tucovića br.

151 220,00

UŽICE Business premises Ul. Petra Ćelovića br. 4 243,81 POŽEGA Business premises Ul. Nikole Pašića br. 2 257,64 BAJINA BAŠTA Business premises Ul. Svetosavska br. 30 52,89

55,77

ZLATIBOR Business premises TC objekat "Brvnara" 55,00 ARILJE Business premises Ul. Sv. Ahilija br. 13 126,00

35

KOSJERIĆ Business premises Ul. Karađorđeva br. 43 85,00 ARILJE Business premises Ul. Svetog Ahilija 20 120,00 ŠID Business premises Ul. Karađorđeva br. 7 91,25 KIKINDA Business premises Ul. Kralja Petra I br. 39 126,91 KIKINDA Business premises Ul. Generala Drapšina br. 30 102,00 KIKINDA Business premises Kralja Petra I 39 126,91 SOMBOR Business premises Ul. Staparski put br. 14 229,00 APATIN Business premises Ul. Srpskih vladara br. 2 80,50 ODŽACI Business premises Ul. Knez Mihailova br. 37 100,00 CRVENKA Business premises (Ul. Moše Pijade br. 47)

Ul. Moše Pijade 30 84,00

CRVENKA Business premises Ul. Moše Pijade br. 61 125,00 KULA Business premises Ul. Lenjinova br. 14 101,40 KULA Business premises Ul. Lenjinova br. 14 101,4 BELA CRKVA Business premises Ul. Proleterska br. 4 147,00 NOVI BEČEJ Business premises Ul. Žarka Zrenjanina br. 4 56,00 SEČANJ Business premises Ul. Vožda Karađorđa bb 64,00 ŽITIŠTE Business premises Ul. Cara Dušana br. 15 140,00 ZRENJANIN Business premises Ive Lole Ribara br. 1 38,00 KOSOVSKA MITROVICA

Business premises Ul. Kralja Petra Prvog br. 33 102,00

ŠTRPCE-BREZOVICA Business premises Hotel NARCIS 30,00 RANILUG Business premises MZ Ranilug, residence Bare 32,00 GRAČANICA Business premises Ul. Glavna bb 150,00 LEPOSAVIĆ Business premises Ul. 29. novembra br. 42a 52,60 ZUBIN POTOK Business premises Ul. Vojvode Rada br. 10 75,00 ŠILOVO-GNJILANE Business premises - 67,00 DRAGAŠ Business premises - 37,50

FACILITIES KOMERCIJALNA BANKA AD BEOGRAD HAS GIVEN INTO LEASE

Place Type (purpose) of the faciliy Address Surface of the

facility (m2)

Property value (present in 000)

Beograd Business premises Makedonska 29 15.885,71 *

Beograd Business premises Toše Jovanovića 7 35,56

Novi Pazar Business premises Stevana Nemanje bb 27,28 Požarevac Business premises Moše Pijade 2 18,50 Požarevac Business premises Moše Pijade 2 56,00

36

Požarevac Business premises Moše Piajde 2 40,00 Požarevac Business premises Moše Pijade 2 364,94 Požarevac Business premises Moše Piajde 2 58,34 Kruševac Business premises JNA 8 55,72

2.2.1.2. Value of facilities and equipment

2.2.2. Share in the capital of other legal entities

2.2.2.1. Name and head office of the legal entity

Share of capital investment in the issuer assets

Share of the issuer in the shareholders capital of the legal entity

Issuer’s voting right in the legal entity, in %

KOMERCIJALNA BANKA AD BUDVA AFFILIATE

- 100% 100%

KOMERCIJALNA BANKA AD Banja Luka

- 99,99% 99,99%

IMK 14. OKTOBAR AD Kruševac

- 11,13% 11,13%

EUROAXIS BANKA MOSKVA

- 10,37% 10,37%

Information o the issuer’s investments, which realize the issuer’s share in the equity of the other legal person in the amount of 10% and more, are presented in the upper chart. If the issuer’s position is one of the parent company, the following information is provided in the chart, relative to subsidiaries:

- Business activity; - Management members; - Development policy and strategy; - Total profit/loss relative to the previous three years; - Total capital relative to the previous three years; - Total assets relative to the previous three years.

Komercijalna Banka has had the status of the parent bank of Komercijalna Banka a.d. Budva and Komercijalna Banka a.d. Banja Luka affiliations since December 31, 2006. Komercijalna Banka a.d. Banja Luka affiliation, Reg.No.-02373262, Podkošljun bb St,, Budva, Montenegro. Komercijalna Banka a.d. Beograd owns 100% share in the shareholders equity of Komercijalna Banka a.d. Budva affiliation. The Bank’s affiliation in Budva, as the autonomous unit, has initiated its business operations in March 2003, upon obtaining the permission of the Central Bank of Montenegro. The Affiliation’s development policy and strategy, established by the Affiliation’s General Meeting of Shareholders, have been confirmed by the Central Bank of Montenegro. The Board of Directors is composed of seven members:

1. Goran Milićević, Chairman 2. Milijana Gregović, Member 3. Gordana Zorić, Member 4. Dr Božo Mihailović, Member 5. Zlatan Živković, Member

37

6. Dragan Marović, Member 7. Dragana Stojkov, Member.

Komercijalna banka a.d, Banja Luka, Single Registration No. -4950128530005, Veselina Masleše St. 6, Banja Luka. Komercijalna Banka ad Beograd owns 99,99% share in the shareholders equity of Komercijalna Banka a.d. Banja Luka. Komercijalna Banka a.d. Banja Luka has initiated its business operations at the end of 2006, upon obtaining the permission from the competent bodies of the Republika Srpska and Federation of Bosnia and Herzegovina. Its strategy and business policy are determined by the Bank’s shareholders in accordance with the legal regulations of the Federation of Bosnia and Herzegovina. The Management Structure of Komercijalna Banka a.d. Banja Luka is composed of the following persons: Srđan Šuput-Director, Boško Mekinjić-Executive Director, Đuro Beronja-Executive Director, The Supervisory Board is composed by the following persons: 1. Dragan Santovac, President 2. Olivera Trikić, Member 3. Savo Petrović, Member 4. Živojin Savić, Member 5. Slobodan Vuković, Member. Consolidated financial information (IN 000 DIN)

Serial No.

2004 2005 2006

1 PROFIT/LOSS BEFORE TAX

323.043 558.023 893.466

2 TOTAL CAPITAL 6.303.355 9.030.491 15.975.297

3 TOTAL ASSETS 53.061.403 76.675.347 107.307.464

2.2.3. Patents, concessions, required licences

2.2.3.1. State short information on the terms and conditions and the expected duration of the approved concession, patents, more significant commercial agreements, franchise agreements, special licences required for the export or import of goods or the performance of the business activity etc;

-

2.2.4. Major Capital Investments

2.2.4.1. Description of the investments and withdrawal of the funds invested in beforehand stated forms of assets in the previous three years and description of the manner in which each of these investments were financed; description of the other important investments and withdrawal of the funds invested and the manner in which these investments were financed

DESCRIPTION 2004 2005 2006 1. FIXED ASSETS 2.017.714 3.529.170 3.897.056

38

1.1. Intangible Investments 146.452 90.115 21.333

1.2. Construction Facilities 1.355.142 2.824.591 3.124.424

1.3. Equipment 422.082 426.857 708.390

1.4. Other 94.038 187.607 42.909

2. INVESTMENTS TO BANKS AND COMPANIES

699.613 727.255 1.762.116

TOTAL (1+2) 2.717.327 4.256.425 5.659.172

NOTE. Real-estate investments on December 31, 2006 amount to 3.092.489 thousands dinars.

2.2.5. Rights of Lien

2.2.5.1. The basic information on the issuer’s property upon which the right of lien has been established: pledge type, value of the pledged collateral, pledge duration, name of the pledgee;

Pledge Type

Value of the pledged collateral (in thousand dinars)

Value of the pledged account receivable (in thousands din.)

Pledge Duration Name of the pledgee

- - - - -

The Bank has no mortgage on its real assets.

2.2.6. Legal and other proceedings

2.2.6.1. Data are provided only with respect to the most important proceedings pursued before the court or other authority: number of proceedings in which the issuer represents the accused party and the total value of all disputes; proceedings relative to the right of industrial property and misuse of the monopoly position are listed separately;

The Bank is engaged in 20 major proceedings before the Court representing the Appellant, and the total value of the respective disputes amounts to approximately 3 billion dinars. The Bank is engaged in 5 major proceedings before the Court representing the Repondent, with the total value that amounts to 900 million dinars. The Bank executed required legal provisioning of funds with respect to all proceedings it is engaged in.

2.2.7. Total amount of the issuer’s liabilities due on the request application date

-

2.2.7.1. Amount of the issuer’s liabilities on the basis of the banking loans

On September 30, 2007 the Bank had the following liabilities on the basis of the loans received from the other commercial banks: The account 57600-Long-term commodity loan from foreign banks -9.114.879,28 dinars. The account 57601-Long-term investment loan from foreign banks -2.912.173,70 dinars.

39

The account 57602-Long-term banking credit facilities from foreign banks -93.646.962,50 dinars. The account 57605-Long-Term commodity loans from foreign banks with the tenor of over four years -202.455.037,01 dinars.

2.2.7.2. Amount of the issuer’s liabilities on the basis of debt securities

-

2.2.7.3. Other issuer’s liabilities

-

2.2.8. Total amount of the issuer’s liabilities unsettled in due time, until the date of the request application

The Bank has no due unsettled liabilities on the date of the Prospectus composition.

2.2.8.1. The amount of the issuer’s liabilities based on the banking loans

-

2.2.8.2. The amount of the issuers liabilities based on debt securities

-

2.2.8.3. Other Issuer’s liabilities

-

2.2.9. Employees

2.2.9.1. The total number of persons employed with the issuer and the number of employed persons within the scope of the specific level of qualification, and the average number of the persons employed in the course of previous three years

Qualifications 2004 2005 2006

OTHERS 172 145 132

High School Graduate 1.535 1470 1556

College Graduate 473 483 565

University Graduate 577 587 715

Master of Science Degree 12 12 15

Doctor of Science Degree 2 2 1

Total 2.771 2.699 2.984

40

Average number of persons employed in the previous three years

2.818

2.2.9.2. Total value of commitments to employees

-

2.3. FINANCIAL INFORMATION

2.3.1. Data from non-consolidated financial statements of the issuer relative to the previous three years

2.3.1.1. Balance sheet for previous three years

in 000 dinars

B A L A N C E S H E E T AOP 31/12/2004

A S S E T S:

Cash and cash equivalents 001 8.847.784 Deposits with the Central Bank and securities that can be refinanced with the Central Banks 002 1.739.836

Interest and fees /commission receivables 003 231.957

Loans to banks 004 10.942.531

Loans to clients 005 26.558.767

Securities and other trading placements 006 47.772

Investments in securities held until maturity 007 144.883

Share in capital and other securities available for sale 008 699.613

Intangible investments 009 146.452

Fixed assets 010 1.871.263

Other assets and prepaid expenses 011 915.991

Delayed tax funds 012 75.260

Loss exceeding the amount of capital 013 -

TOTAL ASSETS (from 001 to 013) 014 52.222.109 LIABILITIES

Liabilities to banks 101 3.628.152

Liabilities to clients 102 40.294.172

Interest and Fees/Commissions Liabilities 103 28.763

Liabilities based on securities 104 -

Profit liabilities 105 319

Operational liabilities 106 377.030

Delayed negative goodwill 107 -

Provisioning 108 960.652

Other liabilities and accrued costs 109 647.424

41

Delayed tax liabilities 110 -

TOTAL LIABILITIES (101 to 110) 111 45.936.512 CAPITAL SHAREHOLDERS AND OTHER CAPITAL 112 5.372.764

Reserves 113 474.449

Accumulated profit 114 438.384

Loss up to the amount of capital 115 -

TOTAL CAPITAL (112+113+114-115) 116 6.285.597

TOTAL LIABILITIES (111+116) 117 52.222.109

OFF-BALANCE POSITIONS (from 119 to 121) 118 23.757.541

Operations on behalf and in favour of the third persons 119 844.654 Guarantees, sureties, asset for securing of liabilities and assumed irreversible liabilities 120 10.061.240

Other off-balance positions 121 12.851.647

Basic balance indicators for 2005 and 2006 adjusted to the amended IAS and newly adopted IFRS

In 000 dinars

B A L A N C E S H E E T AOP 31/12/2005 31/12/2006 ASSETS Cash and cash equivalents 001 10.341.929 8.026.663 Deposits with the Central Bank and securities that can be refinanced with the Central Banks 002 17.695.512 33.371.741

Interest and fees /commission receivables 003 424.858 483.487Loans to banks 004 331.498 149.508 Loans to clients 005 36.591.252 49.927.604 Securities and other trading placements 006 687.144 328.482 Investments in securities held until maturity 007 22.689 139.160 Share in capital and other securities available for sale 008 727.255 1.762.116 Share in equity of other related legal persons declared bycapital method 009 - -

Fixed assets intended for sale and suspended operations assets 010 532 3.525

Overpaid income tax Receivables 011 15.752 26.746Goodwill 012 - -Intangible investments 013 - 21.333Investment real-estate 014 - 3.092.489Fixed assets 015 3.439.055 3.875.723 Other assets and prepaid expenses 016 4.223.616 643.530 Delayed tax funds 017 298.261 366.412 Loss exceeding the amount of capital 018 - - TOTAL ASSETS ( from 001 to 018) 019 74.799.353 102.218.519

LIABILITIES

42

Liabilities to domestic banks 101 2.509.884 3.829.558Liabilities to clients 102 60.271.629 79.327.802 Interest and Fees/Commissions Liabilities 103 35.594 48.722 Securities based liabilities on 104 - - Profit liabilities 105 851 4.284 Current income tax based liabilities 106 - - Funds intended for sale and suspended operations assets based liabilities 107 - -

Other operational liabilities 108 843.511 648.775 Provisioning 109 1.185.130 1.147.830 Other liabilities and accrued costs 110 960.845 1.152.769 Deferred tax liabilities 111 49.940 64.226 TOTAL LIABILITIES (101 to 111) 112 65.857.384 86.223.966 CAPITAL SHAREHOLDER AND OTHER CAPITAL 113 6.745.000 12.662.890

Reserves 114 1.450.785 1.962.557 Accumulated profit 115 746.184 1.369.106 Accumulated loss 116 - - Positive cumulative differences based on the foreign currency adjustment relative to foreign operations 117 - -

Negative cumulative differences based on the foreign currency adjustment relative to foreign operations 118 - -

TOTAL CAPITAL (113+114+115-116+117-118) 119 8.941.969 15.994.553Minority owners stake 120 - -TOTAL LIABILITIES (112+119) 121 74.799.353 102.218.519OFF-BALANCE POSITIONS (from 123 to 125) 122 31.942.292 50.732.993Operations on behalf and in favour of the third persons 123 2.430.050 3.934.303Guarantees, sureties, asset for security of liabilities and assumed irreversible liabilities 124 16.617.098 20.194.905

Other off-balance positions 125 12.895.144 26.603.785 2.3.1.2. Income statement for the previous three years;

In 000 dinars

I N C O M E S T A T E M E N T AOP 31/12/2004

INCOME AND EXPENSE FROM REGULAR OPERATIONS

Interest income 201 3.054.730

Interest expense 202 1.027.883

Interest-based profit (201-202) 203 2.026.847

Interest-based loss (202-201) 204 -

Fees and commission income 205 2.013.116

Fees and commission expense 206 284.283

Fees and commission-based profit (205-206) 207 1.728.83

43

Fees and commission-based loss (206-205) 208 -

Securities sale based net profit 209 407

Securities sale based net loss 210 -

Exchange rate difference net income 211 1.949.351

Exchange difference net expenses 212 -

dividends and stake income 213 56.355

Other operational income 214 1.364.384

Expenses of indirect write-offs of placements and provisioning 215 3.140.503

Other operational expenses 216 3.757.149

Change in value of assets and liabilities income 217 784

Change in value of assets and liabilities expenses 218 733 REGULAR OPERATIONS PROFIT (203-204+207-208+209-210+211-212+213+214-215-216+217-218) 219 228.576 REGULAR OPERATIONS LOSS (204-203+208-207+210-209+212-211-213-214+215+216-217+218) 220 - EXTRAORIDNARY INCOME AND EXPENSES Extraordinary income 221 111.384

Extraordinary expenses 222 35.859

NET EXTRAORDINARY INCOME (221-222) 223 75.525

NET EXTRAORDINRY EXPENSES (222-221) 224 -

PROFIT BEFORE TAX (219-220+223-224) 225 304.101

LOSS BEFORE TAX (220+224-219-223) 226 -

Income tax 227 -

PROFIT AFTER TAX (225-227) 228 304.101

LOSS AFTER TAX (226+227) ILI (227-225) 229 -

Basic balance sheet indicators for 2005 and 2006 adjusted to the amended IAC MRS and newly adopted IFRS

IN 000 dinars

B A L A N C E S H E E T AOP 31/12/2005 31/12/2006 INCOME AND EXPENSES FROM REGULAR OPERATIONS d Interest income 201 5.302.228 6.548.498

Interest expense 202 1.850.660 2.059.774Interest-based profit (201-202) 203 3.451.568 4.488.724Interest-based loss (202-201) 204 - -Fees and commission income 205 2.610.575 2.632.557Fees and commission expense 206 313.125 260.944 Fees and commission-based profit (205-206) 207 2.297.450 2.371.613 Fees and commission-based loss (206-205) 208 - - Securities sale and stake based net profit 209 194.996 33.453 Securities sale and stake based net loss 210 - -

44

Exchange rate difference net income 211 - 1.985.851 Exchange rate difference net expenses 212 450.223 - Net income based on capital method made investments to related legal person 213 - -

Net expenses based on capital method made investments to related legal persons 214 - -

Dividend and stake income 215 21.774 76.107Other operational income 216 854.566 3.351.956indirect write-offs of placements and provisioning expenses 217 3.367.338 5.256.110Other operational expenses 218 4.065.530 5.609.717Change in value of assets and liabilities income 219 2.561.679 1.577.197Change in value of assets and liabilities expenses 220 985.632 2.158.934 REGULAR OPERATIONS PROFIT (203-204+207-208+209-210+211-212+213-214+215+216-217-218+219-220) 221 513.310 860.140

REGULAR OPERATIONS LOSS (204-203+208-207+210-209+212-211+214-213-215-216+217+218-219+220) 222 - -

SUSPENDING OPERATIONS PROFIT 223 - - SUSPENDED OPERATIONS LOSS 224 - - PROFIT BEFORETAX (221-222+223-224) 225 513.310 860.140LOSS BEFORE TAX (222-221+224-223) 226 - -Income tax 227 - -Profit from created delayed tax funds and reduction of delayed tax liabilities 228 223.001 68.151

Loss from the reduction of delayed tax funds and creation of delayed tax liabilities 229 49.940 14.287

PROFIT (225-226-227+228-229) 230 686.371 914.004LOSS (226-225+227-228+229) 231 - -NET PROFIT ACCRUED TO MINORITY INVESTORS 232 - - NET LOSS ACCRUED TO OWNERS OF THE PARENT LEGAL PERSON 233 PROFIT PER SHARE 234 Basic profit per share 235 1 1 Reduced profit per share 236

2.3.1.3. Cash flow statement for the previous three years

In 000 dinars

POSITIONS AOP 31.12.2004 A. CASH FLOWS FROM BUSINESS ACTIVITIES I. Cash inflows from business activities

301 5.643.782

1.Interest inflows 302 3.084.021

2. Fees and commission inflows 303 2.020.495

3. Inflows based on the other operational income 304 433.783

45

4. Dividends and stake inflows 305 56.355

5. Extraordinary income based inflows 306 49.128

II. Cash outflows from business activities ( from 308 to 313) 307 5.550.922

6. Interest based outflows 308 982.590

7. Fees and commission based outflows 309 284.805

8. Gross earnings, reimbursement of earnings and other personal expenses based outflows

310 1.889.657

9. Tax, contributions and other taxes on the account of income based Outflows

311441.211

10. Other operational costs based outflows 312 1.952.659

11. Extraordinary expenses based outflows 313 -

III. Net cash inflow from business activities before increase or decrease in loans and deposits (301-307)

31492.860

IV. Net cash outflow from business activities before increase or decrease in loans and deposits (307-301)

315-

V. Decrease in loans and increase in placed deposits 316 7.078.238

12. Decrease of loans and placements to the banks and other financial organisations

317-

13. Decrease of loans and placements to clients 318 -

14. Decrease of securities and other placements in trade and short-term securities held till maturity

319-

15. Increase of deposits from the banks and other financial organisations 320 993.034

16. Increase of clients’ deposits 321 6.085.204

VI. Increase of placements and decrease of placed deposits ( from 323 to 327)

3225.011.007

17. Increase of loans and placements to banks and other financial organisations

3231.520.279

18. Increase of loans and placements of clients 324

3.443.376

19. Increase of securities and other placements in trade and short-term securities held till maturity

32547.352

20. Decrease of deposits from banks and other financial organisations 326 -

21. Decrease of clients’ deposits 327 -

VII. Operational net cash inflow before income tax (314-315+316-322)

328 2.160.091

VIII. Operational net cash outflow before income tax (314-315+316-322)

329-

22. Income tax payment 330 -

23. Dividend payment 331 65.607

IX. Operational net cash inflow (328-330-331) 332 2.094.484

X. Operational net cash outflow (328-329-330-331) 333 -

B. INVESTMENT ACTIVITIES CASH FLOWSI. Investment activities cash inflows ( from 335 to 337)

33416.980

1. Long-term investments in securities inflows 335 -

46

2. Inflows from sale of shares and stakes 336 -

3. Inflows from sale of intangible investments and fixed assets 337 16.980

II. Investment activities cash outflows (339 to 341) 338 830.165

4. Investments in long-term securities based outflows 339

113.412

5. Purchase of shares and stakes based outflows 340 294.332

6. Purchase of intangible investments and fixed assets based outflows 341 422.421

III. Investment activities net cash inflow (334-338) 342 -

IV. Investment activities net cash outflow (338-334) 343 813.185 V. FINANCING ACTIVITIES CASH FLOWS I. financing activities cash inflow (from 345 to 348)

3441.170.274

1. Capital increase based inflows 345 336.104

2. Long term loans and subordinated liabilities based inflows 346 834.170

3. Disbursed short-term loans based net inflows 347 -

4. Securities based Net inflows 348 -

II. financing activities cash outflows ( from 350 to 353) 349 971.389

5. Own shares purchase based Outflows 350 -

6. Long-term loans and subordinated liabilities repayment based outflows 351 -

7. Disbursed short-term loans based net outflows 352 971.389

8. Securities based Net outflows 353 -

III. Financing activities net cash inflow (344-349) 354 198.885

IV. Financing activities Net cash outflow (349-344) 355 -

G. SUM OF NET CASH INFLOWS (301+316+334+344) 356 13.909.274

D. SUM OF NET CASH OUTFLOWS (307+322+330+331+338+349) 357 12.429.090

Đ. NET CASH INCREASE (356-357) 358 1.480.184

E. NET CASH DECREASE (357-356) 359 -

Ž. CASH AT THE BEGINNING OF THE YEAR 360 5.418.249

Z. POSITIVE EXCHANGE RATE DIFFERENCES 361 8.392.414

I. NEGATIVE EXCHANGE RATE DIFFERENCES 362 6.443.063

J. CASH AT THE END OF PERIOD 363 8.847.784

Cash flow statements for 2005 and 2006 adjusted to amended IAS and newly adopted IFRS

In 000 dinars

1 AOP 31/12/2005 31/12/2006.A. OPERATIONAL CASH FLOWS I Operational cash inflows (from 302 to 305) 301 7.714.649 9.400.560

47

1.Interest inflows 302 4.832.663 6.170.239 2. Fees and commission inflows 303 2.567.052 2.902.072 3. Other operational income based inflows 304 293.152 252.142 4. Dividends and stake inflows 305 21.782 76.107 II Operational cash outflows ( from 307 to 311) 306 5.772.507 7.512.405 5. Interest based outflows 307 1.646.447 1.879.075 6. Fees and commission based outflows 308 312.971 260.884

7. Gross earnings, reimbursement of earnings and other personal expenses based outflows 309 1.771.989 2.567.244

8. Tax, contributions and other taxes on the account of income based outflow 310 409.514 527.039

9. Other operational costs based outflow 311 1.631.586 2.278.163

III Operational net cash inflow before increase or decrease in loans and deposits (301-306) 312 1.942.142 1.888.155

IV Operational net cash outflow before increase of decrease in loans and deposits (306-301) 313 - -

V Decrease of loans and increase of placed deposits (from 315 to 319) 314 18.492.255 20.945.315

10. Decrease of loans and placements to banks and other financial organisations 315 - -

11. Decrease of loans and placements to clients 316 - -

12. Decrease of securities and other placements in trade and short-term securities held till maturity 317 - 372.864

13. Increase of deposits from banks and other financial organisations 318 109.398 1.320.924

14. Increase of deposits from clients 319 18.382.857 19.251.527

VI Increase of loans and decrease of placed deposits (from 321 to 325) 320 19.477.921 31.671.944

15. Increase of loans and placements to banks and other financial organisations 321 5.139.157 15.366.878

16. Increase of loans and placement of clients 322 13.822.443 16.305.066

17. Increase of securities and other placements in trade and short-term securities held till maturity 323 516.321 -

18. Decrease of deposits from banks and other financial organisations 324 - -

19. Decrease of clients’ deposits 325 - -

VII Operational net cash inflow before income tax (312-313+314-320) 326 956.476 -

VIII Operational net cash outflow before income tax (313+320-312-314) 327 - 8.838.474

20. Income tax payment 328 15.752 10.993 21. Dividend payment 329 27.025 114.179 IX Operational net cash inflow (326-327-328-329) 330 913.699 - X Operational net cash outflow (327+328+329-326) 331 - 8.963.646B. INVESTMENT ACTIVITIES CASH FLOWS I investment activities Cash inflow (from 33 to 335) 332 57.585 29.843 1. Long-term investments to securities based inflows 333 7.397 - 2. Share of 1st stake sale based inflows 334 39.067 -

48

3. Intangible investments and fixed assets sale based inflows 335 11.121 29.843 II Investment activities cash outflows (337 to 339) 336 1.074.884 1.335.017 4. Investments in long-term securities based outflows 337 - 129.954 5. Shares and stakes based inflows 338 - 722.734

6. Intangible investments and fixed assets purchase based outflows 339 1.074.884 482.329

III investment activities net cash inflow (332-336) 340 - - IV investment activities net cash outflow (336-332) 341 1.017.299 1.305.174 V. FINANCING ACTIVITIES CASH FLOWS I financing activities Cash inflow (from 343 to 346) 342 2.406.751 6.082.300 1. Capital increase based Inflows 343 1.375.180 6.082.300 2. Long-term loans and subordinated liabilities based inflows 344 1.031.571 - 3. Disbursed short-term loans based net inflows 345 - - 4. Securities based net inflows 346 - - II Financing activities cash outflows (from 348 to 351) 347 358.784 114.597 5. Own shares purchase based outflows based 348 - -

6. Long-term loans and subordinated liabilities repayment based outflows 349 - 71.900

7. Disbursed short-term loans based net outflows 350 358.784 42.697 8. Securities based net outflows 351 - - III Financing activities net cash inflow (342-347) 352 2.047.967 5.967.703 IV Financing activities net cash outflow (347-342) 353 - -G. SUM OF NET CASH INFLOWS (301 + 314 + 332 + 342) 354 28.671.240 36.458.018

D. SUM OF NET CASH OUTFLOWS (306+320+328+329+336+347) 355 26.726.873 40.759.135

Đ. NET CASH INCREASE (354-355) 356 1.944.367 -E. NET CASH DECREASE (355-354) 357 - 4.301.117Ž. CASH AT THE BEGINNING OF FISCAL YEAR 358 8.847.784 10.341.929Z. POSTIVE EXCHANGE RATE DIFFERENCIES 359 4.635.864 11.477.257I. NEGATIVE EXCHANGE RATE DIFFERENCIES 360 5.086.086 9.491.406

J. CASH AT THE END OF THE ACCOUNTING PERIOD (356-357+358+359-360) 361 10.341.929 8.026.663

2.3.1.4. Statement of changes in capital relative to the previous three fiscal years (in 000 dinars)

STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31 2004

Description Share Capital

Issue Premium

Registered unpaid capital

Purchased own shares

Revaluation Reserves

Reserves on the account of profit

Profit Other capital

Total capital

Opening statement – previous period 2895904 - - - 1374065 377908 40443 - 4688320

Adjusted opening statement (01/01/2003)

2895904 - - - 1374065 377908 40443 - 4688320

Issue of shares 974733 - - - - - - - 974733

Acquisition/sale of own shares - - - - - - - - -

49

Increase/decrease in value based on revaluation

- - - - - - - - -

Transfer from 804-delayed revaluation profit from 2001

- - - - - - 29897 - 29897

Other-conversion by IAS 1158042 - - - (1374065) 96541 (70340) 7974 (181848)

Profit/loss - - - - - - 124629 124629

Final statement –previous period (31/12/2003)

5028679 - - - - 474449 124629 7974 5635731

Opening statement – current period 5028679 - - - - 474449 124629 7974 5635731

Adjusted opening statement (01/01/2004)

5028679 - - - - 474449 124629 7974 5635731

Issue of shares 336104 - - - - - - - 336104

Acquisition/sale of own shares - - - - - - - - -

Increase/decrease in value based on revaluation

- - - - - - - - -

Tax loan for investments to fixed assets

- - - - - - 75260 - 75260

Payments on account of profit - - - - - - (65606) 7 (65599)

Profit/loss - - - - - - 304101 - 304101

Final statement –current period (31/12/2004)

5364783 - - - - 474449 438384 7981 6285597

STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31, 2005

Description Share Capital

Issue Premium

Registered unpaid capital

Purchased own shares

Revaluation Reserves

Reserves on the account of profit

Profit Other capital

Total capital

Opening statement – previous period 5028679 - - - - 474449 124629 7974 5635731

Adjusted opening statement (01/01/2004)

5028679 - - - - 474449 124629 7974 5635731

Issue of shares 336104 - - - - - - - 336104

Acquisition/sale of own shares - - - - - - - - -

Increase/decrease in value based on revaluation

- - - - - - - - -

Tax loan for investments to fixed assets

- - - - - - 75260 - 75260

Payments on account of profit - - - - - - (65606) 7 (65599)

Profit/loss - - - - - - 304101 304101

Final statement –previous period (31/12/2004)

5364783 - - - - 474449 438384 7981 6285597

50

Opening statement – current period 5364783 - - - - 474449 438384 7981 6285597

Adjusted opening statement (01/01/2005)

5364783 - - - - 474449 438384 7981 6285597

Issue of shares 1375180 - - - - - - - 1375180

Acquisition/sale of own shares - - - - - - - - -

Increase/decrease in value based on revaluation

- - - - 607495 - - - 607495

Transfer from profit to the Bank’s reserves

- - - - - 367122 (367122) - 0

Payments on account of profit (4113) - - - - 1719 161612 1169 160387

Profit/loss - - - - - 513310 - 513310

Final statement –current period (31/12/2005)

6735850 - - - 607495 843290 746184 9150 8941969

STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31 2006

Description Share capital

Other capital

Registered unpaid capital

Issue Premium Reserves

Revaluation Reserves

Retained earnings

Own shares Total

Statement on January 1st of the previous 2005

5364783 7981 - - 474449 - 438384 - 6285597

Adjusted opening statement on January 1st of the previous 2005

5364783 7981 - - 474449 - 438384 - 6285597

Total increase in the previous fiscal year 1375180 1169 - - 368841 607495 674922 - 3027607

Total decrease in the previous fiscal year

4113 - - - - - 367122 - 371235

Statement on December 31st of the previous 2005

6735850 9150 - - 843290 607495 746184 - 8941969

Adjusted opening statement on January 1st 2006

6735850 9150 - - 843290 607495 746184 - 8941969

Total increase in the current year 2120780 - - 3961520 350000 173892 1090534 164410 7861136

Total decrease in the current year - - - - - 12210 467612 - 479732

Statement on December 31st of the current 2006

8856630 9150 - 3961520 1193290 769267 1369106 164410 15994553

51

2.3.1.5. Important explanation of the individual positions from the financial statements are contained in the Notes enclosed with the financial reports

-

2.3.1.6. Final Auditor’s Opinion Deloitte Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna Banka ad Beograd „We have performed the audit of Komercijalna Banke A.D. Beograd balance sheet (hereinafter referred to as the Bank), on December 31 2004 and 2003, and of the appropriate income statements, capital changes statement and cash flow statements for the above stated f.a.“. Opinion „ According to our opinion, as of December 31 2004 and 2003 the submitted financial reports declare financial statements of the Bank objectively and accurately according to all materially significant aspects, as well as and the results of its business operations, changes in capital and cash flows for the respective years, in accordance with the accounting policies declared in the Notes 2 and 3 in the enclosed financial reports“. Without expressing any reserves with respect to the stated opinion, we draw the attention to following:

) (a) Note 25 with the enclosed financial statements, stating that the Bank is obliged to adjust the scope of its business operations with the provisions stipulated in the Article 26 of the Law on Banks and other Financial Organisations, i.e. to adjust the scope and structure of its risk placements with the regulations prescribed by the National Bank of Serbia. On December 31, 2004 the Bank had placements exceeding the prescribed indicators of the larges possible loans to related person.

) (b) Note 29 in the enclosed financial statements, stating that the Bank has engaged an independent assessor to assess the value of the Bank’s real-estates as of December 31, 2004. According to the assessment report dated February 25, 2005 the market value of the Bank’s real-estates was assessed in the amount of 2.298.017 thousand dinars. The real-estates that were the subject of the assessment are declared in the balance sheet as of December 31, 2004 within the Item of Construction Properties, i.e. the real-estates intended for sale in the amount of 1.320.737 thousand dinars, i.e. 206.419 thousand dinars.

Belgrade, February 28, 2005

Miroslav Tončić Authorised Auditor

Deloitte Extract from the Report submitted before the Board of Directors and the Shareholders of Komercijalna Banka ad Beograd „We have performed the audit of submitted financial statements of Komercijalna Banka A.D. Beograd (hereinafter referred to as the Bank), enclosed on pages 2 to 35, which include the balance sheet as of December 31, 2005 and respective income statement, changes in capital statement and cash flow statement for the fiscal year ending at that date, as well as the overview of the significant accounting policies and notes with the financial reports“. Opinion „According to our opinion, the financial reports declare the financial position of Komercijalna Banka a.d. Beograd objectively and accurately with respect to all materially significant issues, as of December 31, 2005, as well as the results of its business operations, changes in capital and cash flows for the fiscal year ending on that date, in accordance with the accounting regulations of the Republic of Serbia, and the accounting policies declared in the Notes 2 and 3, enclosed to the financial statements“. Belgrade, March 10, 2006.

Miroslav Tončić Authorised Auditor

Deloitte Extract from the Report submitted before the Board of Directors and the Shareholders of Komercijalna

52

Banka ad Beograd „We have performed the audit of submitted financial statements of Komercijalna Banka A.D. Beograd (hereinafter referred to as the Bank), comprising of the balance sheet as of December 31, 2006 and respective income statement, changes in capital statement and cash flow statement for the fiscal year ending at that date, as well as the overview of the significant accounting policies and notes with the financial reports“. Opinion „ According to our opinion, the financial reports declare the financial position of Komercijalna Banka a.d. Beograd objectively and accurately with respect to all materially significant issues, as of December 31, 2006, as well as the results of its business operations, changes in capital and cash flows for the fiscal year ending on that date, in accordance with the Law and Accounting and Audit of the Republic of Serbia, Regulations of the National Bank of Serbia ordering the field of financial reporting of banks and in compliance with the basis of financial statements preparation declared in the Note 2 enclosed with the financial reports“. Belgrade, March 26, 2007

Miroslav Tončić Authorised Auditor

2.3.2. Information from the consolidated financial statements of the Issuer relative to the previous three years

2.3.2.1. Legal persons included in the consolidated report;

Komercijalna Banka a.d. Beograd Group is composed of: 1. Komercijalna Banka a.d. Beograd-in the capacity of the parent bank

2. Komercijalna Banka a.d. Budva- its subsidiary 3. Komercijalna Banka a.d. Banja Luka-its subsidiary.

2.3.2.2. Consolidated Balance Sheet

C O N S O L I D A T E D B A L A N C E S H E E T AOP 31/12/2004 ASSETS Cash and cash equivalents 001 9.246.230 Deposits with the Central Bank and securities that can be refinanced with the Central Banks 002 1.863.449

Interest and fees /commission receivables 003 240.795 Loans to banks 004 10.924.489 Loans to clients 005 27.213.355 Securities and other trading placements 006 47.772 Investments in securities held until maturity 007 179.987Share in capital and other securities available for sale 008 263.073Intangible investments 009 150.475Fixed assets 010 1.925.062 Other assets and prepaid expenses 011 931.456Delayed tax funds 012 75.260Loss exceeding the amount of capital 013 - TOTAL ASSETS (from 001 to 013) 014 53.061.403

53

LIABILITIES

Liabilities to banks 101 3.571.849 Liabilities to clients 102 41.089.965 Interest and Fees/Commissions Liabilities 103 29.318 Liabilities based on securities 104 - Profit liabilities 105 319 Operational liabilities 106 422.155 Delayed negative goodwill 107 - Provisioning 108 962.466Other liabilities and accrued costs 109 681.976Delayed tax liabilities 110 -TOTAL LIABILITIES (101 to 110) 111 46.758.048 CAPITAL Shareholder and other capital 112 5.372.764

Reserves 113 474.616 Accumulated profit 114 455.975Loss up to the amount of capital 115 -TOTAL CAPITAL (112+113+114-115) 116 6.303.355 TOTAL LIABILITIES (111+116) 117 53.061.403 OFF-BALANCE POSITIONS (from 119 to 121) 118 24.002.400 Operations on behalf and in favour of the third persons 119 844.654Guarantees, sureties, asset for security of liabilities and assumed irreversible liabilities 120 10.123.954

Other off-balance positions 121 C O N S O L I D A T E D B A L A N C E S H E E T AOP 31/12/2005. 31/12/2006. ASSETS Cash and cash equivalents 001 11.393.093 10.281.599 Deposits with the Central Bank and securities that can be refinanced with the Central Banks 002 17.961.160 34.078.046

Interest and fees /commission receivables 003 435.222 502.253 Loans to banks 004 154.109 185.558 Loans to clients 005 37.617.032 53.134.077 Securities and other trading placements 006 687.144 328.482 Investments in securities held until maturity 007 65.012 139.160 Share in capital and other securities available for sale 008 260.813 389.203Share in equity of other related legal persons declared by capital method 009 - -

Fixed assets intended for sale and assets from operations which are suspended 010 532 3.525

Receivables for overpaid income tax 011 15.820 26.746Goodwill 012 - -Intangible investments 013 5.324 58.161

54

Investment real-estate 014 - 3.092.489 Fixed assets 015 3.529.304 4.054.352 Other assets and prepaid expenses 016 4.252.521 667.401Delayed tax funds 017 298.261 366.412Loss exceeding the amount of capital 018 - -TOTAL ASSETS ( from 001 to 018) 019 76.675.347 107.307.464LIABILITIES

Liabilities to domestic banks 101 2.504.980 5.498.950Liabilities to clients 102 62.013.230 82.626.571 Interest and Fees/Commissions Liabilities 103 36.485 50.998 Liabilities based on securities 104 - - Profit liabilities 105 851 4.284 Liabilities based on current income tax 106 - 3.976 Liabilities based on funds intended for sale and assets from operations which are suspended 107 - -

Other operational liabilities 108 887.891 700.458 Provisioning 109 1.187.312 1.158.150 Other liabilities and accrued costs 110 963.913 1.224.168 Deferred tax liabilities 111 50.194 64.612 TOTAL LIABILITIES (101 to 111) 112 67.644.856 91.332.167CAPITAL SHAREHOLDER AND OTHER CAPITAL 113 6.745.000 12.662.890

Reserves 114 1.456.512 1.969.210 Accumulated profit 115 701.147 1.303.720 Accumulated loss 116 - - Positive cumulative differences based on the foreign currency adjustment relative to foreign operations 117 127.832 39.477

Negative cumulative differences based on the foreign currency adjustment relative to foreign operations 118 - -

TOTAL CAPITAL (113+114+115-116+117-118) 119 9.030.491 15.975.297Minority owners stake 120 - 38TOTAL LIABILITIES (112+119) 121 76.675.347 107.307.464OFF-BALANCE POSITIONS (from 123 to 125) 122 32.156.494 53.230.919Operations on behalf and in favour of the third persons 123 2.488.813 3.939.833Guarantees, sureties, asset for security of liabilities and assumed irreversible liabilities 124 16.726.196 20.431.660

Other off-balance positions 125 12.941.485 28.859.426

2.3.2.3. Consolidated Income Statement C O N S O L I D A T E D I N C O M E S T A T E M E N T AOP 31.12.2004. INCOME AND EXPENSE FROM REGULAR OPERATIONSInterest income 201 3.144.358

55

Interest expense 202 1.040.148 Interest-based profit (201-202) 203 2.104.210 Interest-based loss (202-201) 204 - Fees and commission income 205 2.130.249 Fees and commission expense 206 304.240 Fees and commission-based profit (205-206) 207 1.826.009 Fees and commission-based loss (206-205) 208 - Securities sale and stake based net profit 209 407 Securities sale and stake based net loss 210 - Exchange rate difference net income 211 1.949.351 Exchange rate difference net expenses 212 - Dividends and stake based income 213 56.355 Other operational income 214 1.364.312 Expenses of indirect write-offs of placements and provisioning 215 3.156.324 Other operational expenses 216 3.896.853 Change in value of assets and liabilities based income 217 784 Change in value of assets and liabilities based Expenses 218 733 REGULAR OPERATIONS PROFIT (203-204+207-208+209-210+211-212+213+214-215-216+217-218) 219 247.518

REGULAR OPERATIONS LOSS (204-203+208-207+210-209+212-211-213-214+215+216-217+218) 220 -

EXTRAORDINARY INCOME AND EXPENSES Extraordinary income 221 111.384

Extraordinary expense 222 35.859 NET EXTRAORDINARY INCOME 223 75.525 NET EXTRAORDINARY EXPESE 224 - PROFIT BEFORE TAX (219+223-220-224) 225 323.043 LOSS BEFORE TAX (220+224-219-223) 226 - Income tax 227 2.758 PROFIT AFTER TAX (225-227) 228 320.285 LOSS AFTER TAX (226+227) ILI (227-225) 229 - C O N S O L I D A T E D I N C O M E S T A T E M E N T AOP 31/12/2005 31/12/2006 INCOME AND EXPENSE FROM REGULAR OPERATIONSInterest income 201 5.420.897 6.724.497

Interest expense 202 1.867.357 2.090.456Interest-based profit (201-202) 203 3.553.540 4.634.041Interest-based loss (202-201) 204 - -Fees and commission income 205 2.765.124 2.838.085Fees and commission expense 206 326.877 283.019Fees and commission-based profit (205-206) 207 2.438.247 2.555.066 Fees and commission-based loss (206-205) 208 - - Net profit based on securities sale and stake 209 194.996 33.453 Net loss based on securities sale and stake 210 - - Exchange rate difference net income 211 - 1.967.130

56

Exchange rate difference net expenses 212 452.845 - Net income based on capital method made investments to related legal person 213 - -

Net expenses based on capital method made investments to related legal persons 214 - -

Dividend and stake income 215 21.774 76.107Other operational income 216 858.824 3.433.814Indirect write-offs of placements and provisioning expenses 217 3.386.992 5.351.577Other operational expenses 218 4.245.568 5.872.831Change in value of assets and liabilities based income 219 2.561.679 1.577.197Change in value of assets and liabilities based expenses 220 985.632 2.158.934REGULAR OPERATIONS PROFIT (203-204+207-208+209-210+211-212+213-214+215+216-217-218+219-220) 221 558.023 893.466

REGULAR OPERATIONS LOSS (204-203+208-207+210-209+212-211+214-213-215-216+217+218-219+220) 222 - -

SUSPENDING OPERATIONS PROFIT 223 - - SUSPENDED OPERATIONS LOSS 224 - - PROFIT BEFORE TAX (221-222+223-224) 225 558.023 893.466 LOSS BEFORE TAX (222-221+224-223) 226 - -Income tax 227 4.621 8.246Created delayed tax funds and reduction of delayed tax liabilities based profit 228 223.001 68.151

Created delayed tax funds and reduction of delayed tax liabilities based Loss 229 50.194 14.439

PROFIT (225-226-227+228-229) 230 726.209 938.932LOSS (226-225+227-228+229) 231 - -NET PROFIT ACCRUED TO MINORITY INVESTORS 232 - -NET LOSS ACCRUED TO OWNERS OF THE PARENT LEGAL PERSON 233 - - PROFIT PER SHARE 234 - - Basic profit per share 235 1 1 Reduced profit per share 236 - -

2.3.2.4. Consolidated cash flow statement relative the previous three years

CONSOLIDATED CASH FLOW STATEMENT AOP 31/12/2004A. OPERATIONAL CASH FLOWS I Operational cash inflows (from 302 to 306) 301 5.664.578 1.Interest inflows 302 2.987.756 2. Fees and commission inflows 303 2.137.628 3. Other operational income based inflows 304 433.711 4. Dividends and stake inflows 305 56.355 5. Extraordinary income based inflows 306 49.128 II Operational cash outflows ( from 308 to 313) 307 5.505.441 6. Interest based outflows 308 994.310 7. Fees and commission based outflows 309 304.762

57

8. Gross earnings, reimbursement of earnings and other personal expenses based outflows 310 1.968.831

9. Tax, contributions and other taxes on the account of income based outflow 311 441.008

10. Other operational costs based outflow 312 1.796.530 11. Extraordinary expenses based outflow 313 -

III Operational net cash inflow before increase or decrease in loans and deposits (301-307) 314 159.137

IV Operational net cash outflow before increase or decrease in loans and deposits (307-301) 315 -

V Decrease in loans and increase in placed deposits (from 317 to 321) 316 7.419.995

12. Decrease of loans and placements to the banks and other financial organisations 317 -

13. Decrease of loans and placements to clients 318 -

14. Decrease of securities and other placements in trade and short-term securities held till maturity 319 -

15. Increase of deposits from the banks and other financiaorganisations 320 936.731

16. Increase of clients’ deposits 321 6.483.264

VI Increase of placements and decrease of placed deposits ( from 323 to 327) 322 5.383.084

17. Increase of loans and placements to banks and other financial organisations 323 1.547.783

18. Increase of loans and placements of clients 324 3.787.949

19. Increase of securities and other placements in trade and short-term securities held till maturity 325 47.352

20. Decrease of deposits from banks and other financial organisations 326 -

21. Decrease of clients’ deposits 327 -

VII Operational net cash inflow before income tax (314-315+316-322) 328 2.196.048

VIII Operational net cash outflow before income tax (314-315+316-322) 329 -

22. Income tax payment 330 2.758 23. Dividend payment 331 65.607 IX Operational net cash inflow (328-330-331) 332 2.127.683 X Operational net cash outflow (328-329-330-331) 333 - B. INVESTMENT ACTIVITIES CASH FLOWS I investment activities Cash flow (from 335 to 337) 334 16.980 1. Long-term investments in securities based inflows 335 - 2. Share and stake sale based inflows 336 - 3. intangible investments and fixed assets sale based inflow 337 16.980 II investment activities cash outflows (339 do 341) 338 740.552 4. Long-term investment in securities based Outflows 339 132.585 5. Share and stake purchase based outflows 340 165.161

6. Intangible investments and fixed assets purchase based outflows 341 442.806

58

III Investment activities net cash flow (334-338) 342 - IV Investment activities net cash outflow (338-334) 343 723.572 V. FINANCING ACTIVITIES CASH FLOWS I Financing activities cash inflow (from 345 to 348) 344 1.170.274 1. Capital increase based inflows 345 336.104 2. Long-term loans and subordinated liabilities based inflows 346 834.170 3. Disbursed short-term loans based net inflows 347 - 4. Securities based net inflows 348 - II Financing activities cash outflows (from 350 to 353) 349 895.371 5. Own shares purchase based outflows based 350 -

6. Long-term loans and subordinated liabilities repayment based outflows 351 -

7. Disbursed short-term loans based net outflows 352 895.371 8. Securities based net outflows 353 - III Financing activities net cash inflow (344-349) 354 274.903 IV Financing activities net cash outflow (349-344) 355 - G. SUM OF NET CASH INFLOWS (301 + 316 + 334 + 344) 356 14.271.827 D. SUM OF NET CASH OUTFLOWS (307+322+330+331+338+349) 357 12.592.813 Đ. NET CASH INCREASE (356-357) 358 1.679.014 E. NET CASH DECREASE (357-356) 359 - Ž. CASH AT THE BEGINNING OF FISCAL YEAR 360 5.617.865 Z. POSTIVE EXCHANGE DIFFERENCIES 361 8.392.414 I. NEGATIVE EXCHANGE DIFFERENCIES 362 6.443.063

J. CASH AT THE END OF THE ACCOUNTING PERIOD (358-359+360+361-362) 363 9.246.230

CONSOLIDATED CASH FLOW STATEMENT AOP 31/12/2005 31/12/2006.A. OPERATIONAL CASH FLOWS I operational Cash inflows (from 302 to 305) 301 7.992.515 9.856.063 1.Interest inflows 302 4.955.256 6.368.475 2. Fees and commission inflows 303 2.718.067 3.144.005 3. other operational income based Inflows 304 297.410 267.476 4. Dividends and stake based inflows 305 21.782 76.107 II Operational cash outflows (from 307 to 311) 306 5.967.022 7.771.433 5. Interest based outflows 307 1.662.808 1.897.206 6. Fees and commission based outflows 308 326.723 282.845

7. Outflows on the basis of gross earnings, reimbursement of earnings and other personal expenses 309 1.864.481 2.683.543

8. Tax, contributions and other taxes on the account of income based outflow 310 422.883 543.342

9. Outflow based on other operational costs 311 1.690.127 2.364.497

III Operational net cash inflow before increase or decrease in loans and deposits (301-306) 312 2.025.493 2.084.630

IV Operational net cash outflow before increase or decrease in loans and deposits (306-301) 313 - -

59

V Decrease in loans and increase in placed deposits(from 315 to 319) 314 19.276.976 24.548.901

10. Decrease of loans and placements to the banks and other financial organisations 315 - -

11. Decrease of loans and placements to clients 316 - -

12. Decrease of securities and other placements in tradeand short-term securities held till maturity 317 - 372.864

13. Increase of deposits from the banks and other financiaorganisations 318 154.774 2.948.175

14. Increase of clients’ deposits 319 19.122.202 21.227.862

VI Increase of placements and decrease of placed deposits (from 321 to 325) 320 19.687.068 34.690.591

15. Increase of loans and placements to banks and other financial organisations 321 5.111.480 15.843.718

16. Increase of loans and placements of clients 322 14.059.267 18.846.873

17. Increase of securities and other placements in trade and short-term securities held till maturity 323 516.321 -

18. Decrease of deposits from banks and other financial organisations 324 - -

19. Decrease of clients’ deposits 325 - -

VII Operational net cash inflow before income tax (312-313+314-320) 326 1.615.401 -

VIII Operational net cash outflow before income tax (313+320-312-314) 327 - 8.057.060

20. Income tax payment 328 20.440 15.475 21. Dividend payment 329 40.192 159.489 IX Operational net cash inflow (326-327-328-329) 330 1.554.769 - X Operational net cash outflow (327+328+329-326) 331 - 8.232.024B. INVESTMENT ACTIVITIES CASH FLOWS I investment activities cash flow (from 333 do 335) 332 84.553 183.734 1. Long-term investments in securities based inflows 333 3.122 - 2. Share and stake sale based inflows 334 68.914 183.734 3. Intangible investments and fixed assets sale based inflow 335 12.517 - II Investment activities cash outflows (337 do 339) 336 1.122.106 732.110 4. Long-term investment in securities based outflows 337 - 129.954 5. Share and stake purchase based outflows 338 - -

6. Intangible investments and fixed assets purchase based outflows 339 1.122.106 602.156

III Investment activities net cash inflow (332-336) 340 - - IV Investment activities met cash outflow (336-332) 341 1.037.553 548.376 V. FINANCING ACTIVITIES CASH FLOWS I Financing activities cash inflow (from 343to 346 342 2.406.749 6.082.341 1. Capital increase based inflows 343 1.375.179 6.082.341 2. Long-term loans and subordinated liabilities based inflows 344 1.031.570 - 3. Disbursed short-term loans based net inflows 345 - - 4. Securities based net inflows 346 - - II Financing activities cash outflows (from 348 to 351) 347 358.784 273.999

60

5. Own shares purchase based outflows 348 - -

6. Long-term loans and subordinated liabilities repayment based outflows 349 - 231.302

7. Disbursed short-term loans based net outflows 350 358.784 42.697 8. Securities based net outflows 351 - - III Financing activities net cash inflow (342-347) 352 2.047.965 5.808.342 IV financing activities net cash outflow (347-342) 353 - - G. SUM OF NET CASH INFLOWS (301 + 314 + 332 + 342) 354 29.760.793 40.671.039

D. SUM OF NET CASH OUTFLOWS (306+320+328+329+336+347) 355 27.195.612 43.643.097

Đ. NET CASH INCREASE (354-355) 356 2.565.181 -E. NET CASH DECREASEE (355-354) 357 - 2.972.058 Ž. CASH AT THE BEGINNING OF FISCAL YEAR 358 9.246.230 11.393.093 Z. POSTIVE EXCHANGE RATE DIFFERENCIES 359 4.683.956 11.479.965 I. NEGATIVE EXCHANGE RATE DIFFERENCIES 360 5.102.274 9.619.401

J. CASH AT THE END OF THE ACCOUNTING PERIOD (356-357+358+359-360) 361 11.393.093 10.281.599

2.3.2.5. Consolidated statement of changes in capital relative to the previous three years

CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31, 2004

Description Share Capital

Issue Premium

Registered unpaid capital

Purchased own shares

Revaluation Reserves

Reserves on the account of profit

Profit Other capital

Total capital

Opening statement – previous period 2895904 - - - 1374065 377908 40443 - 4688320

Adjusted opening statement (01/01/2003)

2895904 - - - 1374065 377908 40443 - 4688320

Issue of shares 974733 - - - - - - - 974733

Acquisition/sale of own shares - - - - - - - - -

Increase/decrease in value based on revaluation

- - - - - - - - -

Transfer from 804-delayed revaluation profit from 2001

- - - - - - 29897 - 29897

Other-conversion by IAS 1158042 - - - (1374065) 96541 (70340) 7974 -

Profit/loss - - - - - - 126364 - 126364

61

Final statement –previous period (31/12/2003)

5028679 - - - - 474449 124629 7974 5635731

Opening statement – current period 5028679 - - - - 474449 126364 7974 5637466

Adjusted opening statement (01/01/2004)

5028679 - - - - 474449 124629 7974 5635731

Issue of shares 336104 - - - - - - - 336104

Acquisition/sale of own shares - - - - - - - -

Increase/decrease in value based on revaluation

- - - - - 167 75260 - 75427

Tax loan for investments to fixed assets

- - - - - - - - -

Payments on account of profit - - - - - - -67341 7 -67334

Profit/loss - - - - - 321692 321692

Final statement –current period (31/12/2004)

5364783 - - - - 474616 455975 7981 6303355

CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31 2005

Description Share Capital

Issue Premium

Registered unpaid capital

Purchased own shares

Revaluation Reserves

Reserves on the account of profit

Profit Other capital

Total capital

Opening statement – previous period 5028679 - - - - 474449 126364 7974 5637466

Adjusted opening statement (01/01/2004)

5028679 - - - - 474449 126364 7974 5637466

Issue of shares 336104 - - - - - - - 336104

Acquisition/sale of own shares - - - - - - - - -

Increase/decrease in value based on revaluation

- - - - - - - - -

Tax loan for investments to fixed assets

- - - - - 167 75260 - 75427

Payments on account of profit - - - - - - -67341 7 -67334

62

Profit/loss - - - - - - 321692 321692

Final statement –previous period (31/12/2004)

5364783 - - - - 474616 455975 7981 6303355

Opening statement – current period 5364783 - - - - 474616 455975 7981 6303355

Adjusted opening statement (01/01/2005)

5364783 - - - - 474616 455975 7981 6303355

Issue of shares 1375180 - - - - - - - 1375180

Acquisition/sale of own shares - - - - - - - - -

Increase/decrease in value based on revaluation

- - - - 734043 27 -82482 - 651588

Transfer from profit to the Bank’s reserves

- - - - - 373021 -373021 - 0

Payments on account of profit -4113 - - - - 1719 148445 1169 147220

Profit/loss - - - - - - 553148 553148

Final statement –current period (31/12/2005)

6735850 - - - 734043 849383 702065 9150 9030491

CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31, 2006

Description Share capital

Other capital

Registered unpaid capital

Issue Premium Reserves Revaluatio

n ReservesRetained earnings

Own shares Total

Statement on January 1st of the previous 2005

5364783 7981 - - 474616 - 455975 - 6303355

Adjusted opening statement on January 1st of the previous 2005

5364783 7981 - - 474616 - 455975 - 6303355

Total increase in the previous fiscal year

1375180 1169 - - 374767 734961 629885 - 3115962

Total decrease in the previous fiscal year

4113 - - - - - 384713 - 388826

Statement on December 31st of the previous 2005

6735850 9150 - - 849383 734961 701147 - 9030491

Adjusted opening statement on January 1st 2006

6735850 9150 - - 849383 734961 701147 - 9030491

Total increase in the current year 2120820 - - 3961520 350878 189823 1079067 164410 7537698

Total decrease in the current year - - - - 463 78698 513731 - 592892

Statement on December 31st of the current 2006

8856670 9150 - 3961520 1199798 846086 1266483 164410 15975297

2.3.2.6. Important explanation of the individual position from the financial statements contained in

63

the Notes enclosed with financial statements

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2.3.2.7. Final Auditor’s opinion Deloitte Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna Banka ad Beograd „We have performed audit of the consolidated financial statements of Komercijalna Banka A.D. Beograd Group (hereinafter referred to as „the Group“), which included the balance sheet of Komercijalna Banka a.d. Beograd (hereinafter referred to as „the Bank“), Komercijalna Banka a.d. Budva as of December 31 2004, as well as the appropriate consolidated income statements and statements on changes in capital for the respective fiscal year. The Group’s Management is responsible for preparation of listed financial statements. Our responsibility lies in giving an opinion on the financial reports mentioned, based on the audit we performed. We haven’t performed the audit of Komercijalna Banka a.d. Budva financial statements, the balance of which represents 2,7% of the consolidated balance sheet of the Group as of December 31, 2004., and total revenues represent 2,4% of the consolidated revenues of the Group for 2004. Another auditor performed the audit of the financial statements of Komercijalna Banka a.d. Budva, whose report dated February 7, 2005 has been delivered to us, therefore our opinion with respect and in the scope of the financial information relative to Komercijalna Banka a.d. Budva included in the consolidated financial statements of the Group is based on the opinion of another auditor. ” Opinion „ According to our opinion, based on the audit we issued and the report of another auditor, as of December 31 2004 the submitted consolidated financial statements declare financial statements of the Group objectively and accurately according to all materially significant aspects, as well as and the results of its business operations, changes in capital and cash flows for the respective year, in accordance with the accounting regulations of the Republic of Serbia and the policies described in the Notes 2 and 3 enclosed with the consolidated financial statements“. Without expressing any reservation with respect to the given opinion, we draw the attention to the following issues:

(a) Note 25 with the enclosed financial statements, stating that the Bank is obliged to adjust the scope of its business operations with the provisions stipulated in the Article 26 of the Law on Banks and other Financial Organisations, i.e. to adjust the scope and structure of its risk placements with the regulations prescribed by the National Bank of Serbia. On December 31, 2004 the Bank had placements exceeding the prescribed indicators of the larges possible loans to related person.

(b) Note 29 in the enclosed financial statements, stating that the Bank has engaged an independent assessor to assess the value of the Bank’s real-estates as of December 31, 2004. According to the assessment report dated February 25, 2005 the market value of the Bank’s real-estates was assessed in the amount of 2.298.017 thousand dinars. The real-estates that were the subject of the assessment are declared in the balance sheet as of December 31, 2004 within the Item of Construction Properties, i.e. the real-estates intended for sale in the amount of 1.320.737 thousand dinars, i.e. 206.419 thousand dinars.

(v) The Group has had no liability whatsoever to prepare the consolidated cash flows in 2003; accordingly no comparative data have been presented in the consolidated balance of cash flows within these financial statements.

Belgrade, February 28, 2005

Miroslav Tončić Authorised Auditor

Deloitte Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna Banka ad Beograd „We have performed audit of the consolidated financial statements of Komercijalna Banka A.D. Beograd Group (hereinafter referred to as „the Group“), enclosed on pages 2 to 33, which include the balance sheet

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of Komercijalna Banka a.d. Beograd (hereinafter referred to as“ the Bank”), Komercijalna Banka a.d. Budva as of December 31, 2005, and the respective consolidated income statement, statement on changes in capital and cash flow statement for the fiscal year ending on that date, as well as the overview of significant accounting policies and Notes enclosed with the financial statements. The Group’s Management is responsible for preparation of listed consolidated financial statements. Our responsibility lies in expressing an opinion on the consolidated financial statements based on the audit performed. We have not performed the audit of the financial statements of Komercijalna Banka a.d. Budva, the balance of which represents 3,1% of the consolidated balance sheet of the Group as of December 31, 2005 and its total revenues represent 2,7% of the consolidated revenues of the Group for fiscal 2005. Another auditor performed the audit of the financial statements of Komercijalna Banka a.d. Budva, whose report dated February 8, 2005 has been delivered to us, therefore our opinion with respect and in the scope of the financial information relative to Komercijalna Banka a.d. Budva included in the consolidated financial statements of the Group is based on the opinion of another auditor. ” „ According to our opinion, based on the audit we issued and the report of another auditor, as of December 31 2005 the submitted consolidated financial statements declare financial statements of the Group objectively and accurately according to all materially significant aspects, as well as and the results of its business operations, changes in capital and cash flows for the respective year ending on that date, in accordance with the accounting regulations of the Republic of Serbia and the policies described in the Notes 2 and 3 enclosed with the consolidated financial statements“. Belgrade, March 10, 2006

Miroslav Tončić Authorised Auditor Deloitte Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna Banka ad Beograd „We have performed audit of the consolidated financial statements of Komercijalna Banka A.D. Beograd Group (hereinafter referred to as „the Group“), which included the balance sheet of Komercijalna Banka a.d. Beograd (hereinafter referred to as „the Bank“), Komercijalna Banka a.d. Budva and Komercijalna Banka a.d. Banja Luka as of December 31 2006, as well as the appropriate consolidated income statements and statements on changes in capital and the cash flow statements for the respective fiscal year ending on that date, and the overview of significant accounting policies and Notes enclosed with the financial statements“. Opinion „ According to our opinion the consolidated financial statements declare financial statements of the Group as of December 31, 2006 objectively and accurately according to all materially significant aspects, as well as and the results of its business operations, changes in capital and cash flows for the respective year ending on that date, in accordance with the Law on Accounting and Audit of the Republic of Serbia and the regulations of the National Bank of Serbia which order the field of financial reporting of the banks, and in compliance with the basis for preparation of the financial statements declared in the Note 2 with the consolidated financial statements“. Belgrade, April 26 2007

Miroslav Tončić Authorised Auditor

2.3.3. Significant indicators of work and business results

2.3.3.1. Significant indicators of business activity are hereto stated, such as the indicators of liquidity, solvency, net working assets, profitability etc., compatible with the basic business activity of the Issuer. With respect to the issuers from the financial sector whose type, manner of computation and level of certain indicators are regulated by special regulations their realized and prescribed values are also listed.

I LIQUIDITY INDICATORS 2004 2005 2006

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Liquidity (average monthly liquidity indicator)

(Min. 1%)

3,84% 4,23% 5,20%; 4,86%;3,73% (In the first, second and third month of the reporting period)

II CAPITAL INDICATOR

Monetary part of the shareholders capital (min. 10 mil. EUR) 74,7 mil. EUR 80,5 mil. EUR 156,4 mil. EUR

Capital adequacy (Min. 12%)

16,39% 15,37% 17,29%

III INVESTEMENT INDICATOR Long-term investments (max. 60%)

47,73% 46,55% 33,95%

IV FINANCING INDICATORS

Large and the largest possible loan (max. 400%)

249,47% 62,50% 27,31%

V RISK INDICATORS

F/X risk indicator (max. 30%) 24,58% 8,27% 24,30%

2.3.4. Cost of wages

2.3.4.1. Cost of wages for the previous three months separately, in gross and net amount;

Value (in 000 dinars)

July 2007 August 2007 September 2007 TOTAL

Gross* 264.477 299.751 267.980 832.208 Net 161.951 190.624 164.133 516.708

* Data include net salary, tax and contributions chargeable to the employee, as well as the contributions chargeable to the employer and membership fees for the Chambers that are included in the base for computation of gross wages, but do not represent the salary.

2.3.5. Profit /loss per share

2.3.5.1. Stated with respect to the previous three business years:

-net profit or loss amount per share, on the basis of the financial statements;

Description 2004 2005 2006 PROFIT (LOSS) 304.101 686.371 914.004 Number of shares 536.067 673.585 885.663 Profit /loss per share 567,28 1.019 1.032

If the number of shares changed in course of the previous three years, than this information would be declared with respect to the new circumstances and method for establishment of share value on substitution of shares would be listed;

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2.3.6. Dividend payment 2.3.6.1. The following is hereby stated: - dates of dividend payment for the previous three years;

Dividend payment for the previous three years was executed after the decision made by the Bank’s General Meeting of Shareholders - the amount of dividend payment per share fore each class separately; For 2004 dividend payment net amount was 37.351.000 dinars, i.e. 1.000 dinars per share For 2005 dividend payment net amount was 48.929.810 dinars, i.e. 1.310 dinars per share For 2006 dividend payment net amount was 52.963.718 dinars, i.e. 1.418 dinars per share.* *Data related to preferential shares. - ex-dividend day – any date immediately before dividend payment, on which the persons registered as shareholders have the right to receive dividend, regardless to the fact that on the dividend payment date the shareholder may as well be another person;

Ex-dividend day is determined by the Decision of the Bank’s Board of Directors

2.3.7. Off-balance sheet positions 2.3.7.1. Description of the most important off-balance sheet positions (in 000 din) Business activities conducted on behalf and for the account of the third persons in 2006 amount to 3.934.303 dinars. Funds relative to the business activities conducted on behalf and for the account of the third partly consist of the funds for micro loans and commission loans for the budget of the Republic of Serbia / the City of Belgrade received from the creditors of foreign donors. Guarantees, sureties, collaterals and assumed irrevocable liabilities amount to 20.194.905 dinars. This position includes: payable guarantees – 6.232.730 performance guarantees-2.074.305 uncovered letters of credit -571.686 acceptance and guarantee bills -1.594.999 assumed irrevocable liabilities -9.721.185 With respect to listed guarantees and potential liabilities classified into categories from B2 to D provision for potential losses in the amount of 696.758 was assessed. This provisioning was declared in the liabilities position of the balance sheet. Respective to guarantees and potential liabilities of A to B1 category provision from the Bank’s profit was declared in the amount of 214.339 dinars. There were no liabilities as per term foreign currency operations on December 31, 2006. Other off-balance sheet positions amount to 26.603.785 dinars. T o t a l : 50.732.993 dinars.

2.4. OTHER RELEVANT FACTS 2.4.1. Other relevant facts that may be of importance for decision making process of the investors, which are related to business operations, activities and financial position of the Issuer. -

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3. THE ISSUER’S DEVELOPMENT POLICY

3.1. Planned development activities of the Issuer 3.1.1. Planned capital increase 3.1.1.1. Plans related to the issuer’s capital increase, the method of such increase and planned time period for the increase are hereto stated;

The Bank shall increase the capital in accordance with the strategies and development objectives established at the General Meeting of Shareholders. Decision on the Increase of Shared Capital shall be made by the Bank’s General Meeting of Shareholders. 3.1.2. Planned increase of business activities

3.1.2.1. Introduction of new activities, increase of the scope of business operations in the existing activities;

Planned increase of the Bank’s business activities is based on expansion and improvement of the existing service portfolio quality, but also on the introduction of new services such as: -electronic banking services development, -investment banking services development, -establishment of the investment funds management association as well as the investment fund, -development of payment cards operations -increase of the business operations cost-efficiency by reduction of costs arising from the existing activities, -expansion of the credit activity with the emphasis on small and medium enterprises, simultaneously with the development of the Bank’s credit potential, and especially long-term sources, -development of domestic, and particularly international payment transactions with further expansion of the branch and outlet network. The Bank shall undertake all of these business activities with the aim of preserving competitiveness and the increase of market share.

3.1.3. Planned investments 3.1.3.1. Planned capital investments, as well as the expected results of investment into real-estate and other legal persons, planned amount of funds intended for the respective investments and the manner of investment financing;

The Bank is planning to continue investing into branch and outlet network in locations where so far it has not yet been present, both in the country and abroad (Federation of Bosnia and Herzegovina, Republika Srpska, Macedonia and Croatia). These investments are related to buying of business facilities in the country and abroad, investments for equipment and adaptation of the business premises. Likewise, further investments for purchase of the new IT equipment in accordance with the Electronic Banking Development Plan are also anticipated.

3.1.4. Business trends 3.1.4.1. The Issuer’s expectations regarding business activity development, trends of fluctuation of prices of

services it renders and/or products it sells ;

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The basic Bank’s expectations with respect to business trends are related to the maintaining of stable macro economical business environment. The expectations are that the trend of gross domestic product growth shall continue, as well as the further drop of inflation rate. Stable macro economical conditions would enable further reduction of the interest rates of the approved loans, both retail and corporate. Standardization of the banking services and introduction of the quality system is by all means the trend in domestic banking sector, which also goes for the development of new aspects of service offering, such as electronic banking. Risk management is the area that particularly gains in importance, as well as the development of non-standard banking services, like consulting and leasing services. Also, more active share in financial market is expected, development of stock exchange operations, and particularly the development of investment banking and opening of private pension and investment funds.

3.1.5. Position of the limited liability company in the branch industry According to the NBS – Central Bank’s data relative to the criteria of the total balance sheet assets with the state of accounts as of June 30, 2007, Komercijalna Banka a.d. is positioned at the fourth place, i.e. it has 8,02% share in the total balance assets of all the banks that operate in domestic market. According to the total balance assets criteria, its main competitors Hypo Alpe-Adria-Bank ad, Banca Intesa ad, Raiffeisen Banka a.d., AIK Banka and others. According to the business network criteria the Banks main competitors are the banks which also have a developed business network. 3.1.5.1. Assessment presented by the Issuer with respect to its position within the industry branch it belongs to: The Bank’s further increase of market share, measured by the share of balance assets in the total balance assets of all banks, development of business network, and particularly the one abroad, increase of F/X and dinar savings and the number of clients.

4. INFORMATION ON THE MEMBERS OF MANAGEMENT AND SUPERVISORY BOARD

4.1. MEMBERS OF MANAGEMENT AND SUPERVISORY BOARD Manager’ Name Ivica Smolić, President of the Executive Board

Dr Predrag Mihajlović, Deputy President of the Executive Board Dragan Santovac, Member of the Executive Board

Name and Function of members of the Board of Directors

Mr Vladislav Cvetković, Chairman Anka Gajić, Member Dr Miroslav Todorović, Member Victor Pastor, Member Dragica Pilipović-Chaffey, Member Mr Mirko Petrović, Member Prof. Dr Boško Živković, Member

Name and Function of the members of Supervisory Board

The Bank has no Supervisory Board in accordance with the Law on Banks

4.2. REIMBURSEMENTS AND OTHER GRANTS OF THE ISSUER 4.2.1. Reimbursements paid to the members of management (Data provided with respect to the previous three years separately, in net amount, to the managers and members of the Board of Directors):

-total amount of wages and other reimbursements of the management members;

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Reimbursements for the members of the Board of Directors

Wages paid to the members of the Executive Board

Year Net Net

2004 2.755.084 -*2005 2.949.315 -2006 5.368.349 36.185.000* Note: The Bank’s Executive Board did not exist in 2004 and 2005. The Bank’s Executive Board was formed on October 1, 2006. - Total amount of loans approved to the management members

Year Board of Directors Supervisory Board Executive Board 2004 - - - 2005 - - - 2006 92.453,18 EUR - - - Total amount of other grants given to the management members. -

4.2.2. Reimbursements paid to the members of the Supervisory Board

(Data presented for the previous three years separately, in net amount):

-Total amount of the reimbursements to the members of the Supervisory Board *;

Year Net amount

2004 2.052.940

2005 1.707.496

2006 3.180.367

*The Bank has had no Supervisory Board since October 1, 2006, in accordance with the provisions of the Law on Banks. -Total amount of other grants given to the members of the Supervisory Board;

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4.2.3. Special rights and benefits realized by the members of the Supervisory Board

Statement of other earnings, benefits or rights realized by the members of management and Supervisory Board with the Issuer;

Member of the Board of Directors have no special rights with respect to the Bank’s shares acquisition

4.2.4. Business transactions performed between the Issuer and the members of management and Supervisory Board

Statement related to business transaction of significant scope concluded between the Issuer and the members of management and Supervisory Board, or the Issuer and persons related to the members of management and Supervisory Board in the last year;

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4.3. SHARE OF MANAGEMENT AND EMPLOYEES IN THE ISSUER’S TIER I CAPITAL

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4.3.1. Statement of:

-share of the members of management and Supervisory Board in Tier I capital Member of the Executive Board and the Board of Directors have neither direct nor indirect ownership in the Bank’s shareholders capital -share of other employees in the Issuer’s Tier I capital;

Employees have no significant share in shareholders capital of the Bank. According to the data from the Central Securities, Depository and Clearing House (October 5, 2007) there are no natural persons with more than 0.6% stake in the Bank’s shares with voting rights. -The Issuer’s policy towards the share of employees in the Issuer’s Tier I capital.

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5. RESPONSABLE PERSONS 5.1. FIRST AND LAST NAME OF THE PERSON RESPONSIBLE FOR THE CONTENT OF THIS PROSPECTUS Dr Predrag Mihajlović Ivica Smolić Deputy President of the EB President of the EB

5.2. Person responsible for the content of Prospectus shall sign the following Statement: STATEMENT: I hereby state that the Prospectus contains true, accurate, complete and all relevant information on the Issuer and the security that are of significance for investors’ decision-making. _________________________ ______________________ Dr Predrag Mihajlović Ivica Smolić Deputy President of the Executive Board President of the Executive Board

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DATE: 24/10/ 2007 Securities and Financial Markets Division Division Director Executive Director Vladimir Garić Lidija Sklopić __________________ __________________ KOMERCIJALNA BANKA AD BEOGRAD Dr Predrag Mihajlović Ivica Smolić Deputy President of the Executive Board President of the Executive Board _________________________________ ____________________________

6.DECISIONS OF THE COMMISSION

6.1. Number and date of the Commission Decision on the Approval of the Prospectus on Shares Issue. Decision on the Approval of the Prospectus on Securities Issue No. 4/0-03-7491/7-07 from 16/11/2007