PUBLIC STATEMENT FROM İHLAS FİNANS

Ihlas Finans made the following statement to inform its depositors about the decision taken by the Banking Regulation and Supervision Agency on February 10^th 2001 to revoke its operating license.

?Since the beginning of November, our country is going through a very challenging period in terms of economy. Especially after the repo interest rates reaching to 2000%, people started to withdraw their money before the maturity dates. The false rumors flying about our company caused panic among our depositors and created a feeling of insecurity in the finance sector.

Our company has paid 265 million USD to its depositors over the last 3 months. 235 million USD of this amount is the principal capital and the remaining 30 million is the profit share. The economic crisis that emerged throughout Turkey on November 15^th 2000 has caused  excessive demands on the part of the depositors and a shortage of cash has broken out due to pressure of time. As a result of the panic atmosphere and the executive proceedings commenced by our depositors, the Banking Regulation and Supervision Agency has revoked our operating license.?

THE RECEIVABLES OF OUR DEPOSITORS WILL BE PAID TO THE LAST PENNY 

Following cancellation of our company?s operating license upon the Decree No. 171 of 10.02.2001 of the Banking Regulation and Supervision Agency, the legal liquidation process has started. Ihlas Finans will collect its receivables from the indebted companies and pay the receivables of its depositors in compliance with the liquidation legislation. The assets of İhlas Finans are sufficient to cover its debts. Consequently, there is no need for our depositors and other customers to worry about their receivables.

Everyone will be paid off to the last penny.

It is a fact that no finance institution in the world may possibly pay back all the deposits within such a short period of time.

The funds of İhlas Finans have been used by those companies which contribute to Turkish economy and provide job opportunities to thousands of people.

Having started its operations on 28.04.1995, İhlas Finans has directly or indirectly paid 320 million USD for taxes to government. Within this time period, 522 million USD has been distributed as dividends to our depositors.

Having fulfilled all its engagements so far, İhlas Finans will continue to act with the same due diligence and utmost attention for payment of the receivables of its depositors during the liquidation process.

The Payment Plan will be announced to our depositors after preparation of the receivables-payables inventory of the Liquidation Board.

Due to cancellation of the operations of our company that has been serving almost 200,000 customers, the banking services of 35 branches throughout Turkey have been terminated.

Our depositors will be provided with status statements from time to time. There is no need to worry or be concerned about the payments. We kindly ask our depositors to disregard any assertions and speculations other than these statements we make.

With best regards,

İHLAS FİNANS KURUMU A.Ş.