Share holding “Financial Company “STS-Invest”.

Registration certificate: ФК No.8 as Financial Company.

The License AB No.1183667 dated 09.09.2004 issued by State Commission for Regulation of financial market services of Ukraine to obtain cash means given by natural persons to the management of the Company with the aim of the funds creation for financing of the construction and realty operation funds.

General information.

The Financial Company “STS-Invest” was set up in March, 2004 as the Company with Limited Liabilities by two large companies in Odessa region; one is “Strojtechsnab” Ltd. and close joint-stock venture “Illyichevskvneshtrans” (the international goods transportation).

In July 2004 the first Agreement was concluded in sum 37,5 mln.hrn. for financing of the construction of the living house complex at 13/1 Gen.Vishnevskiy str.in Odessa city. In order to be guaranteed in providing the fulfillment of the obligations our company opened the credit line in sum 5,0 mln hrn. for one year period in Odessa branch of the “Khreschatic” bank.

After effectiveness the law of Ukraine “Alteration to some acts of legislation” No.3201-IV dated 15.12.2005 and alterations to the law of Ukraine “About financial-credit schemes as to the managing of properties while constructing lodgings and real estate activities” No.978-IV dated 19.06.2003 “FC “STS-Invest” Ltd. one of the first companies in Ukraine in September, 2004 got the License of the State Commission as to the managing the financial markets of Ukraine to exercise the management of Funds of Financing of Construction (FFC).

The Financial Company “STS-Invest” as one of the first companies in Ukraine created the working funds for financing of construction as per strict laws requirements. Having prepared the full set of documents for land rent, design estimates for the beginning and building implements, terms of hypothec properties right, the insurance of construction and financial risks – all those conditions have been performed and in November, 2004 the Fund of Financing of Construction (FFC) under the name “Vishnevsky” had started its activity in which the Customer and General Contractor was shown as “Strojtechsnab” Ltd.

The specialists of “STS-Invest” Ltd. following the laws have started granting the credits to the natural persons – members of the Funds of Financing of the Construction taking the new lodging as the pawn. It gave the possibilities for so many young families having a stable income to become the owners of the new flats via hypothec crediting at the financial company in spite of the fact that they did not gather any primary accumulation before.

During 2005 -2008 years the company has been created four Funds of Financing of Construction based on agreements with “Strojtechsnab” Ltd. The financing of construction began not only in Odessa city but also in Illyichevsk where “Strojtechsnab” Ltd. is making building business in the new micro districts.

The specialists of “STS-Invest” take the active participation at the first stage of the project realization: they consider the planning of the flats, create the new price policy at the different stages of the houses construction. Based on the information received while analyzing the results of constant monitoring of primary lodging market the financial company offers to the construction company which price tactic to apply which should lead to get maximum profit and provide the protection of the interests of the natural persons – members of the Funds of Financing of Construction

As the manager of the FFC the financial company permanently controls the volume and quality of the building jobs and their conformity to the project documentation. The financing of of the construction for the each house is made in accordance with the volume of the performed works and already bought building materials for the construction of this concrete house. The company acts in such a way not only following the laws but first of all protecting the interests of the members of FFC saving the investors’ means from non-purpose usage and avoiding the money freezing at the accounts of the construction company resulted to the court action or an action of the tax administration.

“FC “STS-Invest” constantly tries to expand the field of cooperation with the companies which may combine the mutual relationship in construction of houses and social objects. That will lead to increase the figures to 3-5 times.

In September, 2006 Financial Company “STS-Invest” was restructured from the company with Limited Liabilities to the open share holding company.

The legislation of Ukraine and State Commission for securities very strictly regular the activity of the share holding companies, i.e. those business institutes which can issue emitted securities in free circulation.

The legislation makes the share holding companies to publish accounts as public data (www.smida.gov.ua) and advise the share holders or any other interested persons about the changes in managing structure, changes of owners of big share holding and other alterations in conformity with Regulations of State Commission of securities of stock exchange “About free information concerning issuer of securities” No.1591 dated 19.12.2006 by the way of publishing such alterations in official editions of the above mentioned Commission and on web-site www.stockmarket.gov.ua