Intention to Pay Dividends for 2010

Summary Operating environment in Georgia is improving and 2010 looks promising for Bank of Georgia: Consumer confidence and economic activity is increasing with a 7.5% q-o-q and 46.2% y-o-y increase in client deposits in Q2 2010; Q2 2010 Net remittances increased by 14.6% y-o-y; GDP real growth rate: 8.4% y-o-y Q2 2010; 6.0% 2010F; growth mainly driven by donor money inflows, export growth and credit growth in1H 2010; VAT collection up by 20%+ y-o-y in recent months, 1H 2010 trade turnover up by 18% y-o-y, NBG reserves still on high level at around USD 2 bln, exceeding M2 by 1.5 times Strong operating leverage achieved, 16.4% q-o-q and 4.2% y-o-y basis driven by: Improvement in NIM from 8.0% to 8.3%, as our cost of funds decreased from 8.6% to 8.3%, as a result of deposit rate cuts Solid growth of higher yielding retail loan book Increase of Net Interest Income as lending activity picked up As a result Consolidated Cost/Income ratio decreased from 65.3% in Q1 to 55.5% in Q2 2010, standalone Cost/Income ratio decreased from 53.9% in Q1 2010 to 49.9% in Q2 2010 As of 31 July 2010, the outstanding Eurobonds maturing in February 2012 amounted at US$149 million, out of original US$ 200 million, in August 2010 the Bank has signed agreements for US$ 50 million 5-year credit facilities with EBRD YTD loan book growth funded through deposit inflows locally and internationally. WM Representative Office opened in London Outlook for 2H 2010 • • The growth rate of balance sheet in Q3 lower than Q2 due to seasonality effect as business activities in July and August is usually low Growth expected to resume in Q4 • Higher yielding retail loan book expected to grow faster in 2nd half of the year • Confident to deliver previously announced management target for 2010 We came out strong from the downturn and are well positioned to take advantage of our high liquidity and strong capital to achieve growth at the right price.... .....by implementing our strategy to become more efficient, deposit funded lending machine Lak BANK OF GEORGIA www.bog.ge/ir October 2010 Page 31

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