INVESTMENT Investment is the investment arm of Bank

İŞ INVESTMENT İş Investment is the investment arm of İş Bank and the leading investment banking institution in Turkey. İş Investment stands out as the only listed brokerage house in the country offering variety of services, such as; Ø Brokerage (Trading securities including domestic and international equities, fixed income and derivatives) Ø Investment Advisory Ø Asset Management Ø Corporate Finance (Public offerings, M&As and strategic consultancy) Ø Research

Best Equity House in Turkey. İş Investment rewarded as the “Best Equity House in Turkey” within the frame of Euromoney 2007 Awards for Excellence

Overview of Turkish Capital Markets - 1 EQUITY MARKET (TRY) TURKISH DERIVATIVE EXCHANGE (TRY) 380, 5 bn 344, 5 bn 70, 2 bn 12, 2 bn 2006/1 H 2007/1 H Ø Falling short of expectations, equity market remained relatively weaker in 2007/1 H compared to its performance attained in the first half of 2006. The evolving derivative market also cannibalized some part of trading volume from the equity market. Ø In the process, the derivative market displayed an outstanding performance, beating almost all estimates with 475% annual surge in 2007/IH. The actual trading volumes reached in this market in the first half of 2007 has surpassed our year-end target.

Overview of Turkish Capital Markets - 2 BILLS & BONDS MARKET (TRY) Ø High volatility and uncertainties in the markets lead to a visible drop in the trading volume in the Bills and Bonds Market 420 bn 401 bn 2006/1 H 2007/1 H PENSION FUNDS – PORTFOLIO SIZE (USD)) Ø Pension funds will become the main driving force of the fund management business. The portfolio size of pension funds reached USD 2. 900 mn as of IH/07 from USD 2. 048 mn at the end of 2006 in the market, growing 41% with respect to 2006. Note that the AUM from the pension fund business was merely US$38 mn back in 2003. 2. 900 mn 2. 048 mn 913 mn 2005 2006 08/10/2007

Market Share in Equity Market EQUITY MARKET – İŞ INVESTMENT (TRY) 6, 37% Improving and solidifying our leadership position 6, 27% 23, 8 bn 21, 9 bn 2006/1 H 2007/1 H Ø We strengthened our leadership position in the first half of 2007, increasing our market share to 6, 37% from 6, 27% compared to the same period of 2006 while our trading volume decreased to TRY 21. 9 bn from TRY 23. 8 bn parallel to the contraction in overall market. Ø The results we achieved in the first half is in line with our targets.

Market Share in Bills & Bonds Market BILLS & BONDS MARKET – İŞ INVESTMENT (TRY) Holding one of the first two seats for more than 16 consecutive quarters. 13, 8% 13, 1 bn 12, 8 % 8, 1 bn 2006/1 H 2007/1 H Ø Our market share declined to 12, 8% from 13, 8% while our trading volume decreased to TRY 8, 1 bn from TRY 13, 1 bn thanks to the sheer contraction in overall market. Ø Meanwhile, we have been maintaining our leading positions among the brokerage houses in the market for more than 4 years.

Market Share in Derivative Market DERIVATIVE MARKET – İŞ INVESTMENT 17% New derivative instruments are in the pipeline TRY 12 bn 29% TRY 3, 6 bn 2006/1 H 2007/1 H Ø Our derivative trading volume surged to TRY 12 bn with over 252% rise over the same period of 2006. Our market share retreated to 17% as many players joined to the market. Still, our leadership is uncontested. Ø Our first half trading volume in the derivatives market is quite close to the target figure (TRY 14 bn. ) we had set for the full year. Ø Our trading volume will continue to elevate as more new instruments will start trading in the market iş Investment, as pioneer of the new products, will bolster its leadership via those products. Ø Our client base in derivative products is getting wider in each quarter (foreign & domestic).

Trading Volume in International Capital Markets TRADING VOLUME IN INTERNATIONAL CAPITAL MARKETS (USD Million) 3. 088 893 2006/1 H 2007/1 H ØOur trading volume in international capital markets reached USD 3 bn , surging by 246% with respect to the same period of 2006. ØThe share of international derivatives is getting larger portion of the overall volume. ØThe new instruments will likely give breadth and depth to our increasing volumes in this market.

Asset Management ASSET UNDER MANAGEMENT - PORTFOLIO SIZE Ø We experienced a notable recovery in mutual (TRY Million) fund business in IH/2007 following the major shake out in 2006, which had resulted in major redemptions from the mutual funds. 6. 484 7. 043 5. 734 Ø Pension funds surged by 32% on YTD basis in IH/07. Ø 50% of İş Asset Management shares were purchased from İş Bank at the pre-determined price (TRY 30, 5 mn). Now, İş Investment has 70% direct stake in İş Asset Management. 2005 2006/1 H 5. 247 2006 2007/1 H PENSION FUND – PORTFOLIO SIZE (TRY Million) Ø İş Asset Management -as 70% affiliate- will be consolidated to İş Investment’s results starting from Q 3/2007. İş Investment’s IH/07 results includes merely 20% consolidation of İş Asset Management. 682 516 306 173 2005 2006/1 H 2006 2007/1 H

ISDJE – Exchange Traded Fund (ETF) www. isbyf. com İş Yatırım Dow Jones Turkey Equal Weighted 15 A Type Exchange Traded Fund - founded by İş Investment- was listed at Istanbul Stock Exchange on 25 th May, 2007 with code of ISDJE.

Corporate Finance (Public Offerings – M&As) The largest privatization offering in the ISE: HALKBANK PUBLIC OFFERING SIZE (USD Million) 640 1. 911 Ø We became the only listed brokerage house at the ISE. 708 2007/1 H 2006/1 H M&As (USD Million) 90, 4 34, 9 2006/1 H Ø We performed the largest privatization offering in the Turkish capital markets with Halkbank. 2007/1 H Ø We executed USD 90, 4 mn amounted 2 M&As while it was USD 34, 9 mn in the same period of 2006. Ø Our corporate finance revenues quadruppled to TRY 3. 671 mn in QII, jumping 473, 6% compared to 1 Q/2007 figure.

Subsidiaries Share in Capital (%) Q 1/2007 Share in Capital (%) Q 2/2007 Maxis Securities 100 % Camis Securities 99, 79 % İş Investment Trust 23, 60 % İş Private Equity 20, 08 % İş Asset Management 20 % 70 % Turkish Derivatives Exchange 6% 6% Growing Enterprise Market Automatic Quotation (GEMAQ) 5% 5% İş REIT 1, 37 % Yatırım Finansman Securities 0, 55 % Title of Corporation

Income Statement İş Investment TRY (000) 2006/1 H 2007/1 H Yo. Y ▲% Operating Income: Interest and trading income Commission revenues Income from corporate finance Other income 1. 812 21. 353 6. 120 5. 402 35. 567 22. 744 3. 672 2. 820 1, 862% 6% -40% -47% Total Operating Revenues 34. 687 64. 803 86% Operating Expense -19. 028 - 26. 900 41% Net Operating Profit 15. 659 37. 903 142% Other Expenses -5. 454 -2. 464 -54% Financial Expenses -6. 291 - 3. 126 - 50% Minority Expense 8. 360 - 18. 157 n. m. EBT 12. 274 14. 156 15, 3% Tax -1. 899 - 2. 659 40% Net Profit 10. 375 11. 497 11%

Operating Revenues TRY (000) 2. 819 35. 567 5. 402 2007/1 H 22. 744 3. 671 2006/1 H 21. 353 6. 120 23. 112 21. 353 3. 672 1. 812 Interest and Trading 6. 120 5. 402 2. 820 33. 493 Commissions Corporate Finance Other Ø İş Investment’s total revenues amounted to TRY 64. 803 mn in 2007/1 H, up by 86% on Yo. Y basis. Ø Interest and trading revenues displayed a sharp growth, increasing to TRY 35. 567 mn from TRY 1. 812 mn. The dismal 2006/IH results could be attributed to the low credit volumes and the negative impact of the turmoil. Ø Commission revenues reached TRY 22. 744 mn, surging by 173% over QI/07 figure, the commissions had totaled TRY 21. 353 in the first half of 2006. Ø Other revenues amounted to TRY 2. 819 mn down from TRY 5. 402 mn due to the mainly decline in marked to market value of İş Private Equity.

Brokerage & Trading Commissions (Yo. Y) (TRY Million) 2007/1 H 2006/1 H 17, 2 15, 1 1 4, 8 3, 2 2, 9 0, 7 Brokerage Asset Management Other 5. 064 3. 291 2. 910 Ø Brokerage commissions jumped to TRY 17. 2 mn, recording roughly 1. 51. 014 x rise in QII over its QI performance. Yo. Y increase is 14%. Ø Commissions on derivatives rocketed by five-folds on Yo. Y basis in 2007/1 H, reaching TRY 3. 153 mn vs TRY 619 K in 2006/1 H. Ø Fees on asset management rose to TRY 4. 8 mn due to the effect of İş Asset Management consolidation. This account will likely post better results as 70% of İş Asset Management will be consolidated

Brokerage & Trading Commissions (Qo. Q) (TRY Million) BROKERAGE ASSET MANAGEMENT 17. 2 4, 8 7. 5 0, 57 2007/1 Q 2007/2 Q (TRY Million) OTHER 0. 7 0. 25 2007/1 Q 2007/2 Q

Margin Trading INTEREST ON LOANS EXTENDED TO CLIENTS (TRY 000) OUTSTANDING LOANS (TRY Million) Yo. Y Growth 149 % 69. 8 6. 45 54. 7 4 49. 3 35. 2 31. 5 2. 586 21 2. 586 1 Q/06 2 Q/06 3 Q/06 2006 1 Q/07 2006/1 H 2007/1 H Ø Interest income on margin accounts recorded 149% Yo. Y growth, reaching TRY 6. 5 mn in the first half of the year, surging by TRY 3. 9 mn with respect to the same period of 2006. Ø Loans to clients reached TRY 69, 8 mn as of 2007/1 H, surging by 231% with respect to the same period of 2006.

Operating Expenses TRY (000) Employee Costs Severance Depreciation Goodwill Consultancy Operating Costs Sundry Taxes Advertisement Marketing and Dist. Other Total 2006/1 H 2007/1 H Yo. Y ▲ 8. 998 96 617 -163 778 3. 744 330 698 12. 782 133 609 -728 337 7. 040 277 298 42% 39% -1, 3% 347% -57% 88% -16% -57% 615 3. 315 19. 028 2. 193 3. 959 26. 900 257% 19% 41% Ø Operating costs recorded 41% rise on Yo. Y basis. Ø The cost structure includes several one-off expenses such as IPO expenditures. Ø Foreign marketable security transaction shares and other marketing, selling and distribution expenses also emerged as important cost components of operating expenses in the first half. Ø A rise in employee expenses was observed in 2007/1 H as indicated in 1 Q/2007.

Private Equity İş Private Equity H 1/2007 Results Developing Private Equity Business Ø İş Private Equity announced a net income of $0. 7 Ø Private equity activities have increased considerably over the last two years in Turkey. mn in H 1/2007. Ø Revenues of $12. 6 mn in H 1/2007 include mostly the sales proceeds from the Tuyap exit in February 2007 (at a price of $10. 8 mn). The remaining revenue comes from Nevotek (a leading IP telephony application software developer), the only company İş Private Equity currently fully consolidates. İş Private Capital Track Record Investments Firm Investment Ø Completed exits of İş Private Equity are Cinemars, 30. 25% annual yield in USD terms and Tuyap, 45. 75% annual yield in USD terms. Ø İş Private Equity’s most recent investment in July was in Ode Insulation, a building materials company. The equity investment was $5 mn for a 17. 24% stake. Exits Firm Exit Price Ø New projects are in the pipeline to be finalized in IRR(1) the second half of the year. İş Private Equity is the leader with profitable investments in the fast growing private equity market 20

Maxis Securities Ø Maxis Securities was established in one of the world financial centers London, UK with in the target of expanding its business lines to international capital markets. Ø We expect the company to be fully in operation in QIII/07 as all the legal procedures have recently been completed. Ø Maxis started to open new client accounts, which will likely expedite in the periods to come

Comments on Profit Ø The first half profit confirms our year-end profit estimate. Ø Full consolidation of İş Asset Management that started in QII/07 (merely 20% was consolidated) led the portfolio commissions to jump to TRY 4. 8 mn in IH/07. The effect of 70% consolidation will be seen in next quarter. Ø İş REIT shares amounted to nominal TRY 6. 63 mn (TRY 13. 3 mn in market value), which are held in our accounts, form a potential profit for İş Investment. Ø There are numerous corporate finance related projects in the pipeline that might significantly elevate our corporate finance revenues in the second half. Ø We have been waiting for the legal approval for our new mutual funds.

İŞ INVESTMENT HEAD OFFICE Is Kuleleri Kule-2 Kat 12 4. Levent 34330 Istanbul Ph: (0212) 350 20 00 Fax: (0212) 325 12 26 – 325 12 48 ANKARA BRANCH IZMIR BRANCH Talatpasa Bulvari No: 27 Alsancak 35220 Izmir Ph: (0232) 488 90 00 Fax: (0232) 464 69 43 – 464 68 98 YENIKOY BRANCH KALAMIS BRANCH Fenerbahce, Fener Kalamis Cad. Tibas-Belvu Sitesi A 2 Blok Daire 3 Kadikoy 81030 Istanbul Ph: (0216) 542 72 00 Fax: (0216) 542 72 01 LEVENT LIAISON OFFICE ALMA ATA LIAISON OFFICE 181 Zheltoksan St. The Regent Almaty Oda 108 Almaata 480013 Kazakhstan Ph: (+73272) 505000 Fax: (+73272) 582805 SUBSIDIARY Tahran Cad. No: 3/8 06700 Kavaklidere - Ankara Ph: (0312) 455 26 50 Fax: (0312) 466 26 62 Koybasi Caddesi Iskele Cikmazi No 277 34464 Yenikoy ISTANBUL Ph: (0212) 363 01 00 Fax: (0212) 363 01 01 Yapi Kredi Plaza C Blok Kat 9 Bolum 25/B 34330 Besiktas, Istanbul Ph: (0212) 282 00 18 Fax: (0212) 282 00 19 MAXIS SECURITIES LTD 8 Princes Street London EC 2 R 8 HL UK Ph: (+44207) 397 1431 Fax: (+44207) 726 2566 23 www. isyatirim. com. tr www. isinvestment. com

The information in this report is prepared by “İŞ YATIRIM MENKUL DEGERLER A. Ş. ” (İş Investment) and it is not to be construed as an offer or solicitation for the purchase or sale of any financial instrument or the provision of an offer to provide investment services. Information, opinions and comments contained in this material are not under the scope of investment advisory services. Investment advisory services are given according to the investment advisory contract, signed between the intermediary institutions, portfolio management companies, investment banks and the clients. Opinions and comments contained in this report reflect the personal views of the analysts who supplied them. The investments discussed or recommended in this report may involve significant risk, may be illiquid and may not be suitable for all investors. Therefore, making decisions with respect to the information in this report cause inappropriate results. All prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this report is strictly prohibited. The information presented in this report has been obtained from sources believed to be reliable. Is Investment cannot be held responsible for any errors or omissions or for results obtained from the use of such information.