In accordance with Paragraph 158 of the Securities Law (Official Herald of RM No.95/2005), Komercijalna Banka AD Skopje announces the following Announcement As previously announced a number of shareholders of Komercijalna Banka AD Skopje (the “Bank”) have approached the management to explore the possibility of establishing a majority share stake to be sold to a world-class strategic investor. The Bank further informs that, as at 23 May 2005, 92 shareholders controlling 52.8% of the Bank's share capital have signed a shareholders' agreement (the “Agreement”) regulating their relations, rights and obligations. With the Agreement the shareholders commit to neither selling their shares owned as at the time of signature nor shares they may acquire throughout the process, but not later than by 31 March 2007. Throughout the process parties bound by the Agreement can only sell shares to other shareholders who are part to the Agreement. A financial advisor together with international and local legal counsel will be appointed to ensure the successful selection of a world-class strategic investor and sale of the majority share stake. Nomura International plc, the London branch of the Global investment bank, has been selected as the financial advisor while Freshfields Bruckhaus Deringer LLP from London and Law Office Polenak from Skopje have been chosen as legal counsels. Based on best international practise and standards, it is anticipated that the process will be coming to a conclusion towards the end of 2006. The final selection of a potential strategic partner and decision to sell the shares will be made by shareholders in line with the Agreement. However, in accordance with the take-over law, during a prescribed time period the potential strategic investor will be obliged to purchase all other shares of minorities and other shareholders that wish to sell. All shareholders of Komercijalna Banka AD Skopje who wish to become parties to the Agreement with the same rights as the existing signatories should contact the Bank for more detailed information on the following numbers: ++ (389 2) 3107-544, 3233-475 and 3107-399. КОМЕRCIJALNA BANKA AD SKOPJE