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Press Release

Dogus Group And GE's Consumer Finance Unit Reach Definitive Agreement on Garanti Bank Partnership; Partnership will create an innovative new force in the Turkish banking sector

August 26, 2005

ISTANBUL, Turkey--(BUSINESS WIRE)--Aug. 26, 2005--Dogus Holding A.S and GE Consumer Finance (GECF) the global consumer lending unit of General Electric Company (NYSE: GE), today announce that the parties have reached agreement regarding the acquisition by GECF of a 25.5% share in Garanti Bank, Turkey's third largest private bank. The transaction is subject to regulatory approvals, and is expected to close in the fourth quarter of this year.

Under the terms of the agreement, GECF will acquire from the Dogus Group 25.5% of Garanti Bank's ordinary shares for a cash consideration of $1.556 billion. On this basis the transaction values 100 per cent of ordinary share capital of Garanti Bank at $6.1 billion. In addition GECF will purchase 49.2% of Garanti Bank's founders' shares for a cash consideration of $250 million.

Under the agreement both parties have agreed to form an equal partnership. The board will continue to be chaired by Mr. Ferit F. Sahenk, Chairman and CEO of the Dogus Group, while Mr. Ergun Ozen will remain as President and CEO of Garanti Bank. Garanti currently serves five million customers through a network of 419 branches nationwide. Since 2002 the Bank has enjoyed significant growth of 15% CAGR in the number of customers, 20% CAGR in loans, 19% CAGR in Turkish Lira deposits and 68% in net income.

Total assets as of June 30th 2005 were $24.9 billion, total loans $11.3 billion and total deposits $15.4 billion. The transaction executes on a key GECF objective of expanding its reach across Europe and particularly into rapidly developing markets in the region. In addition to its base in Turkey, Garanti also has operations in Russia, Romania and the Netherlands. Both companies said today that they would look at opportunities for strategic JV's in these and other markets. GE first established a presence in Turkey in 1948 and today operates across a range of sectors including high technology fields such as aircraft engine manufacturing and development.

Dogus Group and GE are already affiliated through CNBC's Turkish channel CNBC-e, which is owned by Dogus Group. Commenting on the agreement, Mr. Ferit F. Sahenk of Dogus Group said: There are many similarities between our companies. Both have a strong track record of taking businesses and growing them, and both companies are built on firm foundations.

Both share strong values of transparency and integrity. Dogus is proud to attract a global company to make such a significant investment in Turkey, and we believe this will create the base for attracting additional foreign investment into the country. Commenting on the agreement, Mr. Dan O'Connor, President & CEO of GECF Europe said: This investment presents an excellent opportunity for us to grow strategically in an important European market.

Our global experience, combined with Dogus' and Garanti's market knowledge and experienced management team, gives us an immediate position as a significant presence in the rapidly expanding Turkish banking and financial services sector. With its highly qualified workforce, its superior technological infrastructure and its extensive distribution network Garanti presents a strong platform for growth.

Mr. Ergun Ozen of Garanti Bank said: Dogus Group's established values, strong governance and expertise in the region, combined with the global experience of GE, will enhance Garanti's capabilities by growing the business through the introduction of new products and services. Under the terms of the transaction and in accordance with the Turkish Capital Markets Board (CMB) regulations, a mandatory tender offer to public shareholders will be required once regulatory approval has been obtained.

Contacts

For GE Consumer FinanceIn the U.S.Bob RendineVP, Global CommunicationsGE Consumer FinanceTel: 1-203-585-2084Email: [email protected]rGE Consumer Finance - EuropeHugh GillandersVP, CommunicationsGE Consumer Finance - Europe+353-87-2568347Email: [email protected]

Cristy Williams
[email protected]
678.518.2596


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