Q3 2009 Results Overview

Libertarian economic policies kick-start modernization Tax and tax rates slashed Now only 6 taxes, down from 21 Flat personal income tax of 20% (to come down to 15% by 2013) Corporate income tax 15% By 2012, no taxes on dividends, interest income, or world-wide income "Liberty Act": Referendum is required for an increase in tax rates Budget expenditure capped at 30% of GDP (FY 2012) Budget deficit capped at 3% of GDP (FY2012) Public debt capped at 60% of GDP (FY2012) Budget earmarks are limited Red tape and import duties cut Free industrial zones created around Poti (port), Kutaisi (second largest city) etc. (Tax rates in zones largely 0%) Customs code harmonized with EU. Customs procedures reduced from 15 to 7 Capital controls abolished Corruption significantly reduced In the World Bank's Ease of Doing Business survey in 2009 Georgia was 11th (out of 183), from 112th in 2005 In the 2009 Transparency International Corruption Index Georgia was 66th (4.1 score), just below Turkey (61st, 4.4), the same as Croatia and above Brazil (75th, 3.7), China (79th, 3.6), India (84th, 3.4) and Russia & Ukraine (146th= 2.2) According to the International Republican Institute survey, 98% of Georgians didn't have to pay a bribe in the past 12 months In Forbes Tax Misery & Reform Index, Georgia was 4th best behind Hong Kong, UAE & Qatar Ambition: Create a fast-growing free enterprise economy that attracts investment and become regional logistical and banking hub LOLO BANK OF GEORGIA www.bog.ge/ir January 2010 Page 8

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