Press Releases

KALA CAPITAL PREVIEWS INVESTMENT STRATEGY

Tbilisi, Georgia - March 31, 2008 -- Former Prime Minister of Georgia, Zurab Nogaideli, and Captain of the Georgian national football team and Italy's AC Milan player, Kakha Kaladze today announced the launch of Kala Capital at a press conference held in Tbilisi. The new venture was formed to make significant investments in the Republic of Georgia, Eastern Europe's fastest growing economy.

Mr. Nogaideli, Chairman of Kala Capital, said "Increasing numbers of foreign investors are attracted to Georgia's double digit growth and its government's pro-business stance. Kala Capital has the focus, strategic partners and resources to capitalize on this exciting time of prosperity."

Mr. Kaladze, Director of Kala Capital, said: "I strongly believe in Georgia and its many attractive investment opportunities. We've assembled an excellent team with deep ties to Georgia and extensive experience building businesses to ensure our interests are successfully managed and strong results delivered."

Kala Capital's strategy is to invest in the country's high growth sectors. The group's holdings include:

Real estate: The recent purchase of 78 hectares in Tbilisi for the development of a $1.5 billon (USD) master planned community called Arsenal City. The "city within a city" will include high-end residential, retail, Class-A commercial space, 5-star hotel and convention facilities. The largest real estate development project underway in Georgia, Arsenal City is expected to raise the county's GDP by 1% and create 25,000 jobs.

Banking: In September Kala Capital opens Progress Bank to serve corporate, private and retail banking clients. Headquartered in Tbilisi, the bank's plans call for a network of branches throughout the country.

Energy: Kala Capital purchased one of Georgia's most established energy companies. The energy division will focus on construction of hydropower plants, oil production and developing alternative energy sources.

Mr. Nogaideli served as Prime Minister of Georgia from 2005 through 2007. During his tenure he introduced transformational economic reforms. The World Bank/International Finance Corporation ranked Georgia number one reformer in 2007 and 18th out of 178 countries in terms of ease of doing business.

Mr. Kaladze delivered club AC Milan a Champions League Title and a FIFA Club World Cup Championship. He has numerous business investments in Ukraine, Italy, Kazakhstan and now in Georgia. His biography will be published this summer with proceeds benefiting children in need through the Kala Foundation.