KYIV, Dec. 20, 2007 – Investment bank Dragon Capital has acted as sole financial adviser in the sale of a 75.8% stake in Ukrinbank, Ukraine’s 46th-largest bank by assets, to Bank Hapoalim of Israel.

Bank Hapoalim agreed to buy the stake in Ukrinbank for $136m, putting the market capitalization of Ukrinbank at $179.4m ($0.009 per share), or 39% above the Ukrainian bank’s current market capitalization. The deal implies a 2007E P/BV of 2.27.

The sale of Ukrinbank confirms continued strong interest among foreign strategic investors towards the Ukrainian banking sector. Dragon Capital continues to be one of the leading advisers on M&A transactions in Ukraine’s banking sector, having assisted Piraeus Bank of Greece in its acquisition of Kyiv-based International Commercial Bank earlier this year as well as advising Austria’s Erste Bank on its purchase of Bank Prestige in 2006.

“Given the much tighter competition in the Ukrainian banking industry at present due to the entry of a number of large international players, it is increasingly important for local small- and mid-sized banks to attract a strong strategic partner to maintain their market position. Ukrinbank owners have properly assessed this trend and made the right decision in our view,” said Mykola Korol, director of investment banking at Dragon Capital.

ABOUT DRAGON CAPITAL
Dragon Capital (www.dragon-capital.ua) is Ukraine’s largest securities brokerage, investment banking, private equity and asset management firm offering a full range of services to institutional, corporate and private clients. Established in 2000, the company is an independent partnership controlled by management, with a small minority stake held by Goldman Sachs. Dragon Capital is the largest broker on the Ukrainian stock market, with a 34% market share in 2007. The firm has completed 20 IPOs and private placements for Ukrainian companies since 2005, raising $1.5bn. Dragon’s asset management arm has nearly $1bn under management. Financial magazine Euromoney has recognized Dragon Capital as the Best Equity House in Ukraine in 2002 and over 2004-07.