Almaty, Kazakhstan - 23 May 2012 - Kazakhstan Kagazy JSC (the “Group") announces that it has agreed new and improved terms for its outstanding liabilities with the European Bank for Reconstruction and Development ("EBRD").

Almaty, Kazakhstan - 23 May 2012 - Kazakhstan Kagazy JSC (the “Group") announces that it has agreed new and improved terms for its outstanding liabilities with the European Bank for Reconstruction and Development ("EBRD").

Both parties have agreed new terms for a loan with an outstanding principal of US$30 million. Specifically, the maturity of the loan was extended for one more year to 2016. At the same time the margin on the interest rate on the loan will be reduced to 4.0% per annum if certain financial covenants are met.

Taisiya Kogutyuk, CEO of Kazakhstan Kagazy, commented:

"We are very pleased with the constructive outcome of our negotiations with EBRD and that we have reached a mutual understanding on all important matters. We thank the Bank for its trust put in the Group”.

New terms and conditions of the loan will apply upon the signing of legal documentation.

For information:

Kazakhstan Kagazy Group produces paper, corrugated cardboard and cardboard containers. It is a modern production company with vertically integrated production cycle that starts from the collection and processing of waste paper and production and distribution of paper, cardboard and containers. It maintains leading positions in paper and cardboard market in Kazakhstan.

The European Bank for Reconstruction and Development is an international financial organization which finances projects across 29 countries covering from Central Europe to Central Asia.

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For additional data, please visit www.kazakhstankagazy.com or contact:

Sadyr Shaguzhayev                                                                   +7(727) 341-02-00, 320-12-00

IR department

Yekaterina Karmysheva                                                               +7(727) 341-02-00, 320-12-00

Press office