PrivatBank Presents Project:

«ELECTRONIC LOGISTICS AND NEW ELECTRONIC LOGISTICS AND NEW METHOD OF MOBILE CONNECTION START METHOD OF MOBILE CONNECTION START

PACKAGES DISTRIBUTION»PACKAGES DISTRIBUTION»

September 2006

PREMISES OF TECHNOLOGY:PREMISES OF TECHNOLOGY:

• For telecommunication companies – owners of extended distribution networks – very acute issues for them: products assortment support and logistics effective management.

• For MVNO, that use borrowed radio frequency resource and network, they need promptly increase their distribution network;

• Large sales network equiped with banking POS terminals for accepting cards, where no start packages of telecommunication operators sold – this is: new markets, new retail outlets.

• (PrivatBank has the most widespread network of POS terminals in Ukraine (over 70 per cent of market – 18 838 POS terminals)

ESSENCE OF TECHNOLOGYESSENCE OF TECHNOLOGY

System of Electronic Logistics and Distributed System of Electronic Logistics and Distributed Personalization of Smart-Cards in Personalization of Smart-Cards in PrivatBank PrivatBank

networknetwork

(by the example of rendering(by the example of rendering

mobile connection servicesmobile connection services

under MVNO-project «under MVNO-project «Privat:Privat:mobile»)mobile»)

Points of distribution services to the Points of distribution services to the end-Customer: Lets compareend-Customer: Lets compare

Traditional(Ready product distribution)

Innovative(''production'' of services package right

on the moment of user's request)

TURN CARD INTO START PACKAGE privat:mobile 

Select PRIV:MOBfrom Main menu.

Select Privat:mobilefrom menu ''Operator''

From menu "Tariffs"select "20: first"

In the next windowclick ''Ok'' to confirm

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3 4

Technology employs patented “Way of personalization of cards for services” – Patent of Ukraine# 64847, claim for invention (RF) №2003117489 of 16.06.2003.

TURN CARD INTO START PACKAGE privat:mobile 

Technology employs patented “Way of personalization of cards for services” – Patent of Ukraine# 64847, claim for invention (RF) №2003117489 of 16.06.2003.

Once request is processed

a checkue will be printed.

Insert card to card reader (on the right side) -chip up and press- "Yes" to confirm.

Two signal sounds indicatesuccessful reading the data from

SIM card.

Next, follow the message "Remove card".

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7 8

9

1. Insert SIM-card to Your phone

2. Enter PIN1, specified on the cheque

3. Dial 8 068 900 00 324. Next, follow operator's voice prompts, dial

5. Press Cancel button

6. Congratulations! Your phone is ready!

ACTIVATION OF START PACKAGE privat:mobile 

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TRADITIONAL LOGISTICSTRADITIONAL LOGISTICSOF MOBILE START PACKAGES DISTRIBUTION OF MOBILE START PACKAGES DISTRIBUTION

NETWORKNETWORKSIM-card manufacturer

MOBILE Operator

Regional Distributor

Reseller

Seller

Data exchange

Packages delivery SIM cards manufacturing

INNOVATIONS IN LOGISTICSINNOVATIONS IN LOGISTICS

PrivatBank

Data Exchange

Завод

SIM - карт

SIM cardsmanufacturing

SIM-cards

Селлерперсонализация

SIM-карт

Personalization Data

SellerSIM-cards

personalization

MobileOperator

SIM-card manufacturer

18 000 retail

outlets

SIM-cards

Value Proposition of TechnologyValue Proposition of TechnologyECONOMIC EFFECT FOR OPERATORECONOMIC EFFECT FOR OPERATOR

DTC – Distribution Total Costs

TC – Transportation costsWC – Warehouse costsCC – Communications costs (processing of orders, invoices, etc.)IC – Inventory costs (stock accounting, analysis of remainders at stock, definition of parties sizes, etc.)PC – Packaging costs (monitoring and management of sales)MC – Material costsAC – Administrative costsSC – Staff costs

DTC=TC+WC+CC+IC+PC +MC+AC +SC

PROJECT GENERAL PROCESS FLOW SHEET

PROJECT COMMERCIALIZATION OPTIONSPROJECT COMMERCIALIZATION OPTIONS

1. Sale of License for Patent Employment and Sale of Know-How:• proposition of technological solution for Issuers of electronic services on smart-cards,

including optimization of own dealer networks operation,• for independent dealer networks to optimize business processes, including logistics, • for banks and other institutions, owners of POS-terminals.

2. Processing of transactions on start packages personalization and aggregation of electronic services:

• Outsourcing of distribution network for telecommunication operators:

– new sales outlets for existing operators

- instant expansion of distribution network for MVNO, that rent a network.

• Introduce the technology to acquiring networks of partner-banks.

Market:Market:IMPLEMENTATION OPPORTUNITIESIMPLEMENTATION OPPORTUNITIES

Above mentioned facts and results of researches expressly prove the demand for MVNO-projects in Russia and near ''hey-day'' of this segment of telecommunication

market.

Presented technology of «distributed electronic supermarkets» of services sale and reasonable fee to start this business will be of interest for new issuers of service.

For Ongoing Wireless Operators – this is:

Optimization Tool for Logistics process (efficient tool for decreasing manufacturing expenses, associated with manufacturing process and services sales),

Tool for Flexible and Efficient Management of Assortment enables to use one universal SIM-card with configuration of tariffs for subscribers

- at billing system level - no binding to start package.

privat:mobile• privat:mobile — affordable virtual mobile network

operator of GSM 900 standard, offers high quality services of mobile connection and a number of innovative services to make Your communication more interesting.

• * …«virtual operator» — is an organization which provides subscription for wireless services, though has no own equipment and frequencies, which it rents at traditional wireless operator.

• CJSC “Radiosystems of Ukraine” License # АА № 720020 of 19.01.2004 issued by State Committee for Communications of Ukraine is a virtual operator under “Telecommunication Law of Ukraine”

About privat:mobile

• privat:mobile  — is the first virtual* mobile network operator in Ukraine.

• privat:mobile  — is:– free start package – no subscription fee – no connection fee – dynamic tariff: talk more, pay less – single tariff for calls in Ukraine – cheap sms-messages to all numbers – SMS-ready – all settings are set by default, phone is ready

to send SMS

PRACTICAL COUSRE ON CREATING START PACKAGE

privat:mobile

Affordable connection clear and fair tariffs

SERVICES OF privat:mobile

Online details for subscriber's phone number

privat:mobile – family

SIM-card by post

Т2Т

Full integration with electronic bank Privat-24:

Change phone number

Who called?

DialPay

SMS-Ready

DETAILS FOR SUBSCRIBER'S PHONE NUMBER

For the first time – DETAILS for Your subscriber's phone number ONLINE :

in any PrivatBank branch-office at www.privatmobile.com.ua – My privat:mobile in electronic payments system Privat-24

7/24, free

*Dynamic password -is a unique PrivatBank technology, is a copyright – Patent of Ukraine №50003, Patent of RF №2225679, which received Certificate of All Ukraine contest «Invention of the Year» nominated "Best Invention of 2003 in the sphere of electronics and telecommunication systems"

To authorize the subscriber to receive details online, client should use dynamic password.

DETAILS FOR SUBSCRIBER'S PHONE NUMBER

At www.privatmobile.com.ua click button1

4 Нажмите «ВЫПИСКИ»

2 Follow prompts to receive details

DETAILS FOR SUBSCRIBER'S PHONE NUMBER

Once You enter Your dynamic password, You get to Privat-24 news page

3

4 Click «DETAILS»

DETAILS FOR SUBSCRIBER'S PHONE NUMBER

You get to the page of financial statements for ALL Your accounts. To receive Your details, click phone number:

5

DETAILS FOR SUBSCRIBER'S PHONE NUMBER

Your phone number details6

You never doubt with privat:mobile,

You know exactly how You spend Your

MONEY,

You always know where Your MONEY,

For You can control Your account ANY

TIME.

FULL INTEGRATION with electronic bank PRIVAT-24

Your phone account status in Privat-24All accounts in one place!Replenish Your phone account via Privat-24

UNIQUE!

Create privat:mobile FAMILY and speak by a discounted tariff with 5 subscribers at www.privatmobile.com.ua:

privat:mobile-FAMILY

Also available at any branch office, ask operator for assistance

Т2Т – REPLENISH ACCOUNT OF OTHER

SUBSCRIBER

CHANGE YOUR PHONE

NUMBER Decided to start a new life from Monday? - don't forget to change

Your mobile phone number. At www.privatmobile.com.ua:

• PRE-paid• POST-paid - «Credit» package for individuals

TARIFF PACKAGES

WHERE TO GET START PACKAGE?at any PrivatBank branch office all over Ukraine. order on-line via Internet:

at www.privatmobile.com.ua in Privat-24

at any PrivatBank POS-terminal

FOR ALL: – You can become subscriber of privat:mobile without being PrivatBank

customer

HOW MUCH?Subscription and start package privat:mobile - FREE

– First replanishment -UAH 20 .

PRE-Paid package privat:mobile

Как стать кредитным абонентом?

• Подключиться к privat:mobile и стать кредитным абонентом возможно в любом отделении банка в течении пяти минут

• При себе необходимо иметь паспорт

• Абонент может говорить в кредит до 2000 грн в месяц

• Минимальная сумма установленного кредита после первого визита составляет 50 грн

REPLENISH:

Cash:

Purchase scratch-card at any POS terminal or branch office

At any branch office, tell cashier Your phone number and amount

Via any pay-card VISA/MasterCard

IMMEDIATELY at www.privatmobile.com.ua and www.privatbank.ua (section PAY IMMEDIATELY)

in Privat-24

electronic scratch cards from UAH 2 upto 500 at any PrivatBank branch office. Value corresponds to money notes

ANY AMOUNT at any PrivatBank branch office

Also, call friends for help and take advantage of Т2Т service

WHERE AND HOW TO REPLANISH ACCOUNT?

Find out Your debt calling 3331 or at www.privatmobile.com.ua and in Privat-24

POST-paid: «CREDIT» PACKAGE

Credit package privat:mobile for individuals

UNIQUEPROPOSITION!

ADVANTAGES OF CREDIT PACKAGE privat:mobile

First talk then pay

NO subscription fee

NO prepayment

NO talk limit

Fast subscription

Check account and phone account in one bank

Details and limits management in Privat 24

All services of privat:mobile

Как стать кредитным абонентом?

• Подключиться к privat:mobile и стать кредитным абонентом возможно в любом отделении банка в течении пяти минут

• При себе необходимо иметь паспорт

• Абонент может говорить в кредит до 2000 грн в месяц

• Минимальная сумма установленного кредита после первого визита составляет 50 грн

Subscribe to privat:mobile and become a credit subscriber at any Bank branch office in several minutes

Required documents: Your ID

What is my credit? Minimum limit after the first visit is – $ 10.

HOW BECOME A CREDIT SUBSCRIBER?

Как стать кредитным абонентом?

• Подключиться к privat:mobile и стать кредитным абонентом возможно в любом отделении банка в течении пяти минут

• При себе необходимо иметь паспорт

• Абонент может говорить в кредит до 2000 грн в месяц

• Минимальная сумма установленного кредита после первого визита составляет 50 грн

WHERE TO PAY OFF THE DEBT?

replenis account with cash or scratch card

at any branch office,

at any PrivatBank POS terminal

via any pay-card VISA/MasterCard

at www.privatmobile.com.ua

in Privat-24

at www.privatbank.ua in section «PAY IMMEDIATELY»

buy scratch card at any PrivatBank branch department or POS terminal

pay required amount at any PrivatBank branch department or POS terminal

ask Bank to monthly write off debt amount from any of Your pay-cards automatically

via Т2Т service

WHERE AND HOW TO PAY BILLS?Talk for one month without paying interests!

Find out Your debt calling 3331, at www.privatmobile.com.ua, in Privat-24

Also, every early month we will notify You by SMS about Your debt, to be paid off within 10 days.

Affordable connection, fair and clear tariffs

THANK YOU FOR YOUR ATTENTION!