In Russia, each year is another year of tremendous economic and political development, which has its effect on the securities market. It is hard to imagine how barbaric the Russian market seemed a few years ago, with privatisation vouchers and financial pyramids. The lack of information and political uncertainty of the 1995 parliamentary and presidential elections kept western banks and investors away from the Russian securities market.

Today the situation is completely different. Necessary legislation on securities trading and registration procedures has been adopted, and the Russian Trading System has been formed. In 1994-1995, the Professional Association of Securities Market Participants (PAUFOR) and National Association of Securities Market Participants (NAUFOR) were established, in order to achieve self-regulation of the market.

SOLID has been operating on the securities market for more than three years now. The Company has grown as the market has developed and it has become one of the largest professional operators in the Russian investment community. Currently, the Company is handling almost all financial instruments, constantly expanding its clientele and range of services.

SOLID is a member of PAUFOR and was one of the first to join NAUFOR. The Company was successful in winning its portion of the Russian securities market and is currently trading almost all shares available in the market.

Many large Russian enterprises have chosen SOLID as the market maker of their equities. For instance, the Company organised a successful international private placement of shares of Tatneft, one of the biggest oil producing companies in Russia. This was one of the first experiences of issuing III Level ADR's for a Russian company in the history of the Russian securities market. SOLID carried out an international sale of a five per cent block of shares of Nizhnekamskshina, one of the largest tire producing companies, producing almost 40 per cent of tires for the national market. This transaction stimulated a rapid growth of this company's share price.

The success of these projects has attracted new clients. SOLID has launched a number of long-term projects for bringing various Russian enterprises to the equity market. Enterprises such as Kazanorgsintez (chemical plant), Kazan Helicopter Plant and others. Our Company has expanded the range of services and established close contacts with European and American stock exchanges. SOLID has worked out some flexible patterns of share and derivative issues, to draw capital into production.

Our major foreign partners who have been working with us on the above mentioned projects are Dresdner Klienwort Benson; Price Waterhouse; National Westminster Bank; Cleary, Gottlieb, Steen & Hamilton; Societe General Finance Developpement, and others.

Despite the progress of the Russian securities market, over recent years we fully appreciate that it is still considered a high risk by many Western companies. However, with its immense natural resources, Russia provides investment opportunities that are second to none elsewhere in the world. The De Beers and Microsofts of the future will be Russian. Many of these companies are now being traded on the Russian exchanges. SOLID is able to assist you to identify the right companies and is committed to providing sound investment advice into the next millennium.

It is important to note that the Russian market, as well as the country itself, has its own peculiarities, requiring a special approach that can only be provided by a Russian company. In this sense, we offer any western bank and financial company mutually beneficial long-term co-operation in the Russian securities market, and hope that our wide experience and commitment to genuine business principles will make SOLID a reliable partner for your company.