In 2007, Balti Investeeringute Grupi Pank AS (BIG) sustained rapid growth and development. For the first time, operating volumes outside Estonia (number of customers, loan portfolio) surpassed corresponding parent company figures. Milestones of the period included penetration of the Lithuanian market, entry to international financial markets, receipt of a credit rating, substantial growth in operating volumes and continuing streamlining and enhancement of internal processes. On 27 August 2007, BIG opened a branch in Lithuania. Credit services were launched in September and by the year-end the Lithuanian loan portfolio had grown to 60.935 million kroons, the number of customers exceeding 2,800. At the end of 2007, our Lithuanian operations comprised 4 sales offices with 44 staff. We are pleased to report that the first months' performance was highly satisfactory - all targets for the Lithuanian market were either achieved or surpassed. The past financial year was also the first in which BIG issued debt securities (bonds of 1.3 billion kroons) in an international market. The bonds are listed on the Stockholm Stock Exchange. The issue allowed raising sufficient funds for sustaining the Group's growth and extending the term of financing (the planned maturity date of the bonds is 31 March 2011). Bond issues were also arranged in the local market. In November 2007, the rating agency Moody's Investors Service awarded BIG a credit rating of B1. The Group decided to apply for a rating in order to broaden its creditor base and improve its recognition in the international financial markets. In 2007, BIG's consolidated loan portfolio expanded by an exceptional 115% to 2,176.515 million kroons, the year-end number of customers exceeding 98 thousand. The consolidated balance sheet grew by an impressive 116% to 2,620.126 million kroons. A lot of effort was put in enhancing the internal processes. The Group continued developing its information systems, created a Risk Manager's position, appointed specialists to the Asset/Liability Management Committee and otherwise improved its management and control systems. At 31 December 2007, BIG employed 494 people including 247 in Estonia, 203 in Latvia, and 44 in Lithuania. During the year, the office network grew from 24 to 38 offices, the closing figure breaking down between countries as follows: Estonia 20, Latvia 14 and Lithuania 4. On 1 August 2007, management board membership changed as Head of Sales and Marketing Kaido Saar ascended to the board. The current members of the management board are Veiko Kandla, Kaido Saar and Targo Raus. In 2007, the remuneration of the members of the management and supervisory boards including relevant taxes amounted to 3.5 million kroons and 0.9 million kroons respectively. Additional information: Targo Raus CEO Tel: +372 735 0923