Reference: Isbank's public disclosure on 19/03/2008.

By expanding the scope of authority given by the related disclosure, the Board of Directors of Türkiye İş Bankası A.Ş. decided to authorize the Head Office to take the necessary initiatives for acquiring or establishing a bank in Azerbaijan.


“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

As per the resolution of the Board of Directors, it is decided to raise the registered capital ceiling of Isbank to TL 10 billion from TL 7 billion and to amend the articles 5, 18, 19, 49, 58, 62 and provisional article 17 of Isbank’s Articles of Incorporation. The Head Office is authorized to obtain the necessary permissions regarding the aforementioned amendments.

Attached are the old and new versions of the articles of Isbank’s Articles of Incorporation to be amended. (Original Turkish version)

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/63270.pdf

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Subject: Redemption of Borrowing Instrument

Bills publicly offered in Turkey by Türkiye İş Bankası A.Ş on 27-28-29 July 2011 with a nominal value of TL 600,000,000, term of 175 days and ISIN Code of TRQTISB11219, and by the permission of the Capital Markets Board dated 20 July 2011, nr. B.02.6.SPK.0.13.00-105.04.02-1441, as per the Board Registry Document 18/BB-55, matured as of today and they are redeemed.

Subject: Regarding the result of the domestic issuance of bills

Attached below is the result of the domestic issuance of bills by Türkiye İş Bankası A.Ş. with a nominal value of TL 1,000,000,000 and with a term of 175 days, by the permission of the Capital Markets Board dated 16 January 2012, nr. B.02.6.SPK.0.13.00-105.03.01/76-561, as per the Board Registry Documents 4/BB-55 and 5/BB-9.

www.kap.gov.tr/yay/Download/Bildirim/Ek/62976.pdf

Reference: Isbank's public disclosure on 04/01/2012.

The offering circular related to the public offering of Isbank’s bills and bonds, which was certified by the Capital Markets Board on 16 January 2012 is attached hereto.

The related book building will be realized on 18-19-20 January 2012.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/62856.pdf

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosures on 23/12/2011, 29/12/2011 and 17/01/2012.

Regarding the public offering of TL denominated bills and/or bonds up to TL 6 billion with different maturities, the prospectus, which has been certified by the Capital Markets Board and registered by İstanbul Trade Registry Office, is attached hereto.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/62855.pdf

Reference: Isbank's public disclosure on 29/12/2011.

It was announced with the above-mentioned disclosure that Türkiye İş Bankası A.Ş. had applied to the Capital Markets Board (CMB) to issue TL denominated bills and/or bonds up to TL 6.1 billion with different maturities.

It is announced in Weekly Bulletin Nr.2012/2 of the CMB that the aforementioned bills and/or bonds have been registered to the CMB.

Reference: Isbank's public disclosures on 23/12/2011 and 29/12/2011.

It was announced with the abovementioned disclosures that the Board of Directors of Türkiye İş Bankası A.Ş. had decided to authorize the Head Office to issue TL denominated bills and/or bonds up to TL 6.1 billion with different maturities and within the framework of the related issuance, to apply to the Banking Regulation and Supervision Agency (BRSA), Capital Markets Board and to other legal authorities, and that within this framework, Isbank had applied to the legal authorities.

Within this context, Isbank was informed that BRSA approved the issuance of TL denominated bills and/or bonds up to TL 6.1 billion with different maturities in Turkey.

Reference: Isbank's public disclosures on 01/12/2010 and 23/12/2011.

Within the framework of the Resolutions of the Board of Directors of Türkiye İş Bankası A.Ş. dated 30.11.2010 and 23.12.2011 on the domestic issuance of borrowing instruments, the Head Office started operations to issue bills with a nominal value of TL 1 billion and with a maturity of 175 days via public offering, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

Isbank applied to the Capital Markets Board related to aforementioned issuance.

Reference: Isbank's public disclosure on 19/12/2008.

With the related disclosure it was announced that a framework agreement had been signed between Isbank and KfW Entwicklungsbank as part of EU Small Enterprises Loan Programme-SELP II.

Within the context of the framework agreement, a supplemental agreement was signed for securing EUR 31.4 million with a term of four years, which will be used for SME financing.


“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosure on 23/12/2011.

With the related disclosure it was announced that the Board of Directors of Türkiye İş Bankası A.Ş., had decided to authorize the Head Office to issue TL denominated bills and/or bonds up to TL 6.1 billion with different maturities and within the framework of the related issuance, to apply to the Banking Regulation and Supervision Agency (BRSA), the Capital Markets Board (CMB) and to other legal authorities.

Within this context, Isbank applied to the Banking Regulation and Supervision Agency, the Capital Markets Board and Istanbul Stock Exchange (ISE) for the issuance of TL denominated bills and/or bonds up to TL 6.1 billion with different maturities in Turkey.

The Board of Directors of Türkiye İş Bankası A.Ş. decided to authorize the Head Office for expanding Isbank’s banking operations in Egypt, which is currently at representative level.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

The Board of Directors of Türkiye İş Bankası A.Ş. decided to authorize the Head Office to take the necessary initiatives for opening a branch in Pakistan.

The Board of Directors of Türkiye İş Bankası A.Ş. decided to authorize the Head Office to issue TL denominated bills and/or bonds up to TL 6.1 billion with different maturities and within the framework of the related issuance, to apply to the Capital Markets Board, Banking Regulation and Supervision Agency and to other legal authorities.

The Board of Directors of Türkiye İş Bankası A.Ş. decided to authorize the Head Office to take the necessary initiatives for opening a branch in Georgia and opening a branch or establishing or acquiring a bank in Kosovo provided that suitable conditions are ensured.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

On 09.12.2011 Isbank signed a framework agreement with European Investment Bank (EIB) to secure EUR 150 million loan with a term of maximum ten years. The aforementioned loan will be used for SME financing.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

On 09.12.2011, İşbank signed a USD 50 million credit agreement with the Export-Import Bank of Korea (KEXIM) in İstanbul. Within the framework of the credit agreement, it will be possible to grant short and long term loans in relation to the goods and services purchased by Turkish importers from Korean firms as well as to provide financing for ship imports.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

International credit rating agency Standard and Poor’s affirmed Isbank’s ratings.

Isbank’s current ratings are as follows:

Long-term Counterparty Credit Rating: BB (Outlook: Positive)
Long-term Certificate of Deposits: BB
Short-term Counterparty Credit Rating: B
Short-term Certificate of Deposits: B
Long-term National Scale Rating: trAA
Short-term National Scale Rating: trA-1

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Subject: Redemption of Borrowing Instrument

Bills publicly offered in Turkey by Türkiye İş Bankası A.Ş on 1-2-3 June 2011 with a nominal value of TL 700,000,000, term of 177 days and ISIN Code of TRQTISBA1111, and by the permission of the Capital Markets Board dated 26 May 2011, nr. B.02.6.SPK.0.13.00-105.03.01-1033, as per the Board Registry Document 10/BB-55, matured as of today and they are redeemed.

As a result of the tender made, TL 220,573,458 of Isbank’s non-performing loans were assigned and transferred to Efes Varlık Yönetim A.Ş. in exchange of payment of TL 42,054,955 in cash.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Subject: Regarding the result of the domestic issuance of bills

Attached below is the result of the domestic issuance of bills by Türkiye İş Bankası A.Ş. with a nominal value of TL 550,000,000 and with a term of 179 days, by the permission of the Capital Markets Board dated 24 November 2011, nr. B.02.6.SPK.0.13.00-105.04.02-2025, as per the Board Registry Document 35/BB-55.

www.kap.gov.tr/yay/Download/Bildirim/Ek/61575.pdf

Subject: Regarding the result of the domestic issuance of floating rate bonds with coupon payment

Attached below is the result of the issuance of floating rate bonds with coupon payment every 3 months by Türkiye İş Bankası A.Ş. with a nominal value of TL 150,000,000 and with a term of 726 days, by the permission of the Capital Markets Board dated 24 November 2011, nr. B.02.6.SPK.0.13.00-105.04.02-2025, as per the Board Registry Document 25/T-5.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/61576.pdf

Fitch Ratings changed the outlook on Isbank's "BBB-" long-term local and foreign currency Issuer Default Rating to "Stable" from "Positive". Fitch Ratings stated no change in Isbank's other ratings and outlooks.

According to the disclosure made by the agency, the aforementioned changes were made following the action taken on the outlook of the Republic of Turkey announced on 24 November 2011.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosure on 18/11/2011.

With the related disclosure, it was announced that Isbank Board of Directors had authorized the Head Office to issue bills with a nominal value of TL 550 million and floating rate bonds with coupon payment every 3 months with a nominal value of TL 150 million via a domestic public offering in Turkey, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

The offering circular related to the public offering of Isbank’s bills and bonds, which was certified by the Capital Markets Board on 24 November 2011 is attached hereto.

The book building of Isbank’s bills and bonds will be realized on 28-29-30 November 2011.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/61355.pdf

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/61356.pdf

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Reference: Isbank's public disclosures on 27/01/2011, 08/04/2011, 27/05/2011, 22/07/2011 and 30/09/2011.

The “updated text of the prospectus” related to the changes in the prospectus regarding Isbank’s domestic offering of bills and bonds, which were attached to Isbank’s disclosure on 27/01/2011, and the changes in the updated text of the prospectus, which were attached to Isbank’s disclosures on 08/04/2011, 27/05/2011, 22/07/2011 and 30/09/2011 have been certified by the Capital Markets Board on 24 November 2011 and registered by İstanbul Trade Registry Office on 25 November 2011.

The updated text of the prospectus is attached hereto.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/61354.pdf

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

It is informed by the Competition Authority that, as a result of the preliminary examination of interest rates in the banking sector, an investigation has been initiated into the banks, including Türkiye İş Bankası A.Ş, to determine whether there has been a contravention of article nr. 4 of the Act nr. 4054 on the Protection of Competition.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosure on 01/12/2010 regarding the  authorization given to the Head Office on the issuance of borrowing instruments.

Isbank Board of Directors decided to authorize the Head Office to issue bills with a nominal value of TL 550 million and floating rate bonds with coupon payment with a nominal value of TL 150 million via domestic public offering in Turkey, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

Reference: Isbank's public disclosure on 30.09.2011

Isbank finalized a Diversified Payment Rights (DPR) securitization transaction with an amount of USD 75 million and EUR 160 million and the related funds are obtained on 31.10.2011. Wells Fargo Securities, LLC, Standard Chartered Bank, WestLB AG London Branch and SMBC Nikko Securities America, Inc acted as joint lead arrangers of the securitization deal. The tranches of the securitization deal amounting to USD 75 million and EUR 100 million have a final maturity of 5 years, and the tranche amounting to EUR 60 million has a final maturity of 7 years.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Subject: Redemption of Borrowing Instrument

Bills publicly offered in Turkey by Türkiye İş Bankası A.Ş on 13-14-15 April 2011 with a nominal value of TL 700,000,000, term of 176 days and ISIN Code of TRQTISBE1117, and by the permission of the Capital Markets Board dated 07 April 2011, nr. B.02.6.SPK.0.13.00-105.04.02-702, as per the Board Registry Document 5/BB-55, matured as of today and they are redeemed.

Reference: Isbank's public disclosures on 25.08.2009, 08.03.2011 and 22.09.2011

By the disclosure on 22.09.2011 Isbank announced that TL 9,740,505 of the administration fine given to Isbank by the Competition Board, the amount calculated by benefiting from the discount within the frame of the provision of Article 17 of the Misdemeanor Law nr. 5326, had been paid by Isbank on 21.09.2011 to the Large Taxpayers Tax Administration Office, provided that the Bank reserved its right to litigate against the related decision and to claim for refund.

Isbank filed a lawsuit of nullity at the Council of State in request for a stay of execution against the decision of the Competition Board for giving an administrative fine.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Subject: Regarding the result of the domestic issuance of bills

Attached below is the result of the domestic issuance of bills by Türkiye İş Bankası A.Ş. with a nominal value of TL 700,000,000 and with a term of 175 days, by the permission of the Capital Markets Board dated 29 September 2011, nr. B.02.6.SPK.0.13.00-105.04.02-1791, as per the Board Registry Document 25/BB-55.

www.kap.gov.tr/yay/Download/Bildirim/Ek/59054.pdf

Reference: Isbank's public disclosure on 26/09/2011.

With the related disclosure it was announced that Isbank Board of Directors had authorized the Head Office to issue bills with a nominal value of TL 700 million via a domestic public offering in Turkey, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange. The offering circular related to the public offering of Isbank’s bills, which was certified by the Capital Markets Board on 29 September 2011 is attached hereto.

The book building of Isbank’s bills will be realized on 5-6-7 October 2011.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/58894.pdf

Reference: Isbank's public disclosures on 27/01/2011, 08/04/2011, 27/05/2011 and 22/07/2011.

The “updated text of the prospectus” related to the changes in the prospectus regarding Isbank’s domestic offering of bills and bonds, which were attached to Isbank’s disclosure on 27/01/2011, and the changes in the updated text of the prospectus, which were attached to Isbank’s disclosures on 08/04/2011, 27/05/2011 and 22/07/2011, have been certified by the Capital Markets Board on 29 September 2011 and registered by İstanbul Trade Registry Office on 30 September 2011.
The updated text of the prospectus is attached hereto.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/58892.pdf

Isbank started operations to obtain a securitization deal based on diversified payment rights with a maximum final maturity of 7 years.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosure on 01/12/2010 regarding the  authorization given to the Head Office on the issuance of borrowing instruments.

Isbank Board of Directors decided to authorize the Head Office to issue bills with a nominal value of TL 700 million via a domestic public offering in Turkey, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

Reference: Isbank's public disclosures on 25.08.2009 and 08.03.2011

Isbank’s related disclosures informed that an investigation had been carried out as per the Act nr. 4054 on the Protection of Competition into 8 banks, including Türkiye İş Bankası A.Ş. by the Competition Board and that as a result of the afore-mentioned investigation, Türkiye İş Bankası A.Ş. had been given administrative fines amounting to TL 12,987,340, with the possibility of recourse to the Council of State.

TL 9,740,505 of the administration fine given to Isbank by the Competition Board, the amount calculated by benefiting from the discount within the frame of the provision of Article 17 of the Misdemeanor Law nr. 5326, was paid by Isbank on 21.09.2011 to the Large Taxpayers Tax Administration Office, provided that the Bank reserves its right to litigate against the related decision and to claim for refund.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

On 14.09.2011, Isbank signed an agreement, in Istanbul, for a syndicated loan with dual tranche for USD 359 million and EUR 603 million. The syndicated loan, which was raised by participation of 37 banks from 15 countries, will be used for financing international trade. The cost of the part that belongs to the banks with highest shares has been realized as Libor +1% and Euribor +1%, respectively. The one-year syndicated loan has one-year extension option.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

On 26 August 2011, Isbank authorized the consortium of international banks to secure a syndicated loan of two tranches, in EUR and in USD, with a term of one year.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Bills publicly offered in Turkey by Türkiye İş Bankası A.Ş on 2-3-4 February 2011 with a nominal value of TL 500,000,000, term of 176 days and ISIN Code of TRQTISB81113, and by the permission of the Capital Markets Board dated 24 January 2011, nr. B.02.01.SPK.013-105.04.02-122-922, as per the Board Registry Document 4/BB-55, matured as of today and  they are redeemed.

Subject: Regarding the result of the domestic issuance of bills

Attached below is the result of the domestic issuance of bills by Türkiye İş Bankası A.Ş. with a nominal value of TL 600,000,000 and with a term of 175 days, by the permission of the Capital Markets Board dated 20 July 2011, nr. B.02.6.SPK.0.13.00-105.04.02-1441, as per the Board Registry Document 18/BB-55.

www.kap.gov.tr/yay/Download/Bildirim/Ek/56075.pdf

Reference: Isbank's public disclosures on 27/01/2011, 08/04/2011 and 27/05/2011.

The “updated text of the prospectus” related to the changes in the prospectus regarding Isbank’s domestic offering of bills and bonds, which were attached to Isbank’s disclosure on 27/01/2011, and the changes in the updated text of the prospectus, which were attached to Isbank’s disclosures on 08/04/2011 and 27/05/2011, have been certified by the Capital Markets Board on 20 July 2011 and registered by İstanbul Trade Registry Office on 21 July 2011.
The updated text of the prospectus is attached hereto.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/55783.pdf

Reference: Isbank's public disclosure on 14/07/2011.

With the related disclosure it was announced that Isbank Board of Directors had authorized the Head Office to issue bills with a nominal value of TL 600 million via a domestic public offering in Turkey, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.
The offering circular related to the public offering of Isbank’s bills, which was certified by the Capital Markets Board on 20 July 2011 is attached hereto.

The book building of Isbank’s bills will be realized on 27-28-29 July 2011.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/55784.pdf

Reference: Isbank's public disclosure on 01/12/2010 regarding the  authorization given to the Head Office on the issuance of borrowing instruments.

Isbank Board of Directors decided to authorize the Head Office to issue bills with a nominal value of TL 600 million via a domestic public offering in Turkey, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

USD 500 million loan agreement with a maturity of five years is signed between İşbank and two international banks.

Subject: Regarding the result of the issuance of discount bonds

Attached below is the result of the issuance of discount bonds by Türkiye İş Bankası A.Ş. with a nominal value of TL 300,000,000 and with a term of 516 days, by the permission of the Capital Markets Board dated 26 May 2011, nr. B.02.6.SPK.0.13.00-105.03.01-1033, as per the Board Registry Document 10/BB-55.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/54679.pdf

Subject: Regarding the result of the issuance of bills

Attached below is the result of the issuance of bills by Türkiye İş Bankası A.Ş. with a nominal value of TL 700,000,000 and with a term of 177 days, by the permission of the Capital Markets Board dated 26 May 2011, nr. B.02.6.SPK.0.13.00-105.03.01-1033, as per the Board Registry Document 10/BB-55.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/54574.pdf

Reference: Isbank's public disclosure on 20/05/2011

With the related disclosure it was announced that Isbank Board of Directors had authorized the Head Office to issue bills with a nominal value of TL 700 million and discount bonds with a nominal value 300 million via public offering, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

The offering circular related to the public offering of Isbank’s discount bonds, which was certified by the Capital Markets Board on 26 May 2011 is attached hereto.

The book building of Isbank’s discount bonds will be realized on 6-7-8 June 2011.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/54496.pdf

H. Fevzi Onat, the Board member and Deputy Chairman of Isbank, resigned from his duty on 30.05.2011.
 
As per Article 315 of the Turkish Commercial Code and Article 26 of the Isbank Articles of Incorporation, Murat Vulkan has been appointed as Director to be on duty until the first General Meeting and to fulfill the remaining term of office for his predecessor, H.Fevzi Onat. Füsun Tümsavaş, one of the Board Members, was elected as the Deputy Chairman of the Board.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosure on 20/05/2011.

With the related disclosure it was announced that Isbank Board of Directors had authorized the Head Office to issue bills with a nominal value of TL 700 million and bonds with a nominal value 300 million via public offering, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.
The offering circular related to the public offering of Isbank’s bills, which was certified by the Capital Markets Board on 26 May 2011 is attached hereto.

The book building of Isbank’s bills will be realized on 1-2-3 June 2011.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/54228.pdf

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosures on 27/01/2011 and 08/04/2011.

The “updated text of the prospectus” related to the changes in the prospectus regarding Isbank’s bills and bonds, which were attached to Isbank’s disclosure on 27/01/2011, and the changes in the updated text of the prospectus, which were attached to Isbank’s disclosure on 08/04/2011, have been certified by the Capital Markets Board on 26 May 2011 and registered by İstanbul Trade Registry Office 27 May 2011.

The updated text of the prospectus is attached hereto.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/54227.pdf

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosure on 01/12/2010 regarding the  authorization given to the Head Office on the issuance of borrowing instruments.

Isbank Board of Directors decided to authorize the Head Office to issue bills with a nominal value of TL 700 million and bonds with a nominal value of TL 300 million via public offering, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

On 16.05.2011, Isbank signed an agreement, in Istanbul, for a syndicated loan with dual tranche for USD 290 million and EUR 626 million. The syndicated loan, which was raised by participation of 45 banks from 19 countries, will be used for financing international trade. The cost of the part that belongs to the banks with highest shares has been realized as Libor +1.1% and Euribor +1.1%, respectively. The one-year syndicated loan has one-year extension option.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

On 11 May 2011, Isbank authorized the consortium of international banks to secure a syndicated loan of two tranches, in USD and in EUR, with a term of one year.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Since the news which was previously contradicted by Isbank’s disclosure dated 06.01.2011, took place again on 29.04.2011 in some other media it is considered to be necessary to make the following declaration.

Statements regarding tax conflicts in the afore-mentioned news to which Isbank is said to be a party has no accuracy. Related declarations of Isbank thereon took place in the disclosures made on 06.01.2011 and 16.02.2011.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosures on 25.10.2010, 15.12.2010, 10.02.2011 and 01.04.2011 .

Regarding the acquisition of 100% shares of Closed Joint Stock Company Bank Sofia, operating in Russia, USD 36 million of the USD 40 million total has been paid and the share transfer has been finalised as of 27.04.2011. Remaining amount of USD 4 million will be paid after one year within the framework of the Share Purchase Agreement.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Subject: Issue of Borrowing Instrument – Finalization of the Sale

Attached below is the result of the issuance of bills by Türkiye İş Bankası A.Ş. with a nominal value of TL 700,000,000 and with a term of 176 days, by the permission of the Capital Markets Board dated 07 April 2011, nr. B.02.6.SPK.0.13.00-105.04.02-702, as per the Board Registry Document 5/BB-55.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/51525.pdf

At its meeting on 13.04.2011, the Board of Isbank decided to appoint;

The Head of Treasury Division, Ms. Senar Akkuş,
The Manager of Kozyatağı Corporate Branch, Mr. A. Erdal Aral,
The Chairman of the Board of Inspectors, Mr. Ertuğrul Bozgedik,
The Head of Branch Network Development Division, Mr. Levent Korba,
The Head of Risk Management Division, Mr. Rıza İhsan Kutlusoy,
The Manager of Gebze Corporate Branch, Mr. Aydın Süha Önder and
The Head of Retail Banking Marketing Division, Mr. Yalçın Sezen

as Deputy Chief Executives and to terminate Deputy Chief Executive Mr. Aykut Demiray’s office at Isbank.  The Head Office is authorized to carry out the operations required to complete the related appointment process.

Furthermore, Deputy Chief Executives Mrs. Hülya Altay, Mr. Zafer Memişoğlu and Mr. Hakan Barut communicated to Isbank their retirement requests, which will be concluded as of 30 April 2011.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosure on 25/03/2011.

With the related disclosure it was announced that Isbank Board of Directors had authorized the Head Office to issue bills with a nominal value of TL 700 million and with a maturity of 176 days via public offering, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

The offering circular related to the public offering of Isbank’s bills, which was certified by the Capital Markets Board on 7 April 2011 is attached hereto.

The book building of Isbank’s bills will be realized on 13-14-15 April 2011.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/51170.pdf

Reference: Isbank's public disclosure on 27/01/2011.

The “updated text of the prospectus” related to the changes in the prospectus regarding Isbank’s bills and/or discount bonds and/or bonds, which were attached to Isbank’s related disclosure, has been certified by the Capital Markets Board on 7 April 2011 and registered by İstanbul Trade Registry Office 8 April 2011.

The updated text of the prospectus is attached hereto.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/51169.pdf

At its meeting on 01.04.2011, the Board elected Mr. H. Ersin Özince as the Chairman of the Board and Mr. H. Fevzi Onat as the Deputy Chairman. The Board also accepted the request of Mr. H. Ersin Özince to leave his position as CEO, and appointed Deputy Chief Executive Mr. Adnan Bali, as the new CEO.

Reference: Isbank's public disclosures on 10/02/2011.

Russian Central Bank’s permission for the share transfer of Closed Joint Stock Company Bank Sofia, operating in Russia, has been obtained. Another disclosure will be made upon the completion of the share transfer.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Mr. Ersin Özince, announced that he would leave his position as the CEO of Isbank. Necessary disclosures will be made as soon as there is progress related to the issue.

At Isbank’s General Meeting held on March 31^st, 2011, in Istanbul, the following issues have been resolved.

RESOLUTIONS MADE AT ISBANK’S GENERAL MEETING HELD ON MARCH 31^st, 2011, IN ISTANBUL

1. It was decided to authorize the Chairmanship Council to sign Minutes of the General Meeting.
2. The Board of Directors’, Auditors’ and Independent Auditors’ Reports have been read and discussed.
3. The Balance Sheet and the Profit and Loss Account for the year 2010 have been ratified.
4. The Board of Directors has been acquitted with regard to transactions and accounts in the year 2010.
5. The Auditors have been acquitted with regards to transactions and accounts in the year 2010.
6. Resolution was made to distribute dividend starting from April 1^st, 2011 as stated in the attachments.
7. H. Ersin Özince, H. Fevzi Onat, Aynur Dülger Ataklı, Prof. Dr. Savaş Taşkent, Füsun Tümsavaş, Hasan Koçhan, Hüseyin Yalçın, Aysel Tacer, Mustafa Kıcalıoğlu and Mete Başol have been appointed as Directors, replacing the Board Members whose terms of office ended.
8. A. Taciser Bayer and Kemal Ağanoğlu were elected as Auditors.
9. The monthly payment of net TL 8,500 was designated to the Board members.
10. The monthly remuneration of the auditors was determined as net TL 4,500.
11. It was decided to authorize the Directors of the Board as per Turkish Commercial Code articles 334 and 335.
12. The shareholders were informed on the donations made during the year 2010.

Please click to view the Profit Distribution Table, Minutes of the AGM (in Turkish) and the List of Attendants (in Turkish).

Today there has been news in various media regarding the sale of Isbank's shares in the capital of Avea İletişim Hizmetleri A.Ş., a participation of Isbank.

There has neither been any action taken by the Head Office nor any resolution made by the Board of Directors thereon.

Reference: Isbank's public disclosure on 01/12/2010.

Regarding the domestic issuance of TL denominated bills and/or bonds up to TL 5 billion with different maturities, Isbank Board of Directors decided to authorize the Head Office to issue bills with a nominal value of TL 700 million and with a maturity of 176 days via public offering, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

Reference: Isbank's public disclosure on 25.08.2009

Isbank’s related disclosure informed that pursuant to the Competition Board Decisions dated 19.08.2009 and numbered 09-36/919-M and dated 24.08.2009 and numbered 09-37/924-M, an investigation has been carried out as per the Act nr. 4054 on the Protection of Competition into 8 banks, including Türkiye İş Bankası A.Ş.

As a result of the afore-mentioned investigation, it has been decided, with the possibility of recourse to the Council of State, that Türkiye İş Bankası A.Ş. shall be given administrative fines amounting to 12,987,340 TL.

As per the resolution of the Board of Isbank dated 04.03.2011, it is decided to propose to the General Assembly the distribution of TL 2,982,209,699.58 net profit for the year 2010 as follows.

As per the resolution of the Board of Directors dated 04.03.2011, it is decided that the Annual General Meeting of Turkiye Is Bankasi A.S. will be held on Thursday, 31st March 2011, at 14:00 p.m. at Head Quarters / Auditorium building at Is Kuleleri, 34330 - Levent/ Istanbul. Following agenda will be discussed during the meeting.

 Agenda of The Annual General Meeting

1  -  Opening Ceremony, establishment of Chairmanship Council and authorization of the Chairmanship Council to sign Minutes of the General Meeting,
2  -  Presentation of and discussion on the Board of Directors’, Auditors’ and Independent Auditors’ Reports,
3  -  Examination and ratification of 2010 Balance Sheet and Income Statement,
4  -  Discharge of the Board of Directors from their responsibilities for the transactions and accounts of the year 2010,
5  -  Discharge of the Auditors from their responsibilities for the transactions and accounts of the year 2010,
6  -  Determination of the dividend distribution and the method and date of allotment of dividends,
7  -  Election of the members of the Board of Directors,
8  -  Election of the Auditors,
9  -  Determination of the allowance for the members of the Board of Directors,
10 - Determination of the Auditors’ salaries,
11 - Permitting the members of the Board of Directors as per articles 334 and 335 of the Turkish Commercial Code,
12 - Presenting information to shareholders about the donations made during the year 2010.

Please click to view the Proxy Statement.

The ‘General Agreement’ amounting to JPY 22 billion at maximum (approximately USD 269 million) was signed in Istanbul on 04.03.2011 between Isbank and Japan Bank for International Cooperation (JBIC). The related amount will be used to finance the medium and long-term ship imports of Turkish importers from Japanese exporters.

Isbank’s Arbil/Iraq branch (Address: Gulan Street, Ainkawa Road, Duty Free Complex, Arbil-Iraque / Phone number: + 964 750 386 23 05 - 06), located in the city of Arbil in the Republic of Iraq, began to operate on 28 February 2011.

Reference: Isbank's public disclosure on 14.02.2011

There has been news in various media that the sales process of Isbank’s shares in Arap Türk Bankası A.Ş. had been interrupted.

The sales process of Isbank’s shares in Arap Türk Bankası A.Ş. continues as planned.

Reference: Isbank's public disclosure on 06/01/2011.

In the public disclosure related to the news on a daily newspaper on 6 January 2011, it was announced that there were tax assessments related to the Bank, which were the subject of dispute, amounting approximately to TL 632 million, about TL 254 million of which was the principal amount and about TL 378 million of which was the fine, that the related tax assessments were taken to court by the Bank in the related period and that within this framework the related tax assessments were cancelled by the tax court, that the tax administration appealed these decisions that were in favor of the Bank and the cases were still to be resolved at the State Council.

Of the approximate amount of TL 632 million tax assessments mentioned in the related disclosure, regarding the total amount of TL 517.5 million in favor of the Bank, TL 207 million of which was the principal amount and TL 310.5 million of which was the fine, the Tax Court Decisions, which were in favor of the Bank, has been approved by the State Council. The total remaining portion of the related tax assessment amounting to TL 114.4 million, TL 46.8 of which was the principal amount and TL 67.6 million of which was the fine, is still at the stage of examination and when the resolution of the State Council is made thereon, a public disclosure will be made.

As per the Resolution of the Board of Directors dated 14.02.2011, the Head Office is authorized to exercise the Bank’s preferential rights due to the call payments for the years 2011 and 2012, amounting to TL 39,034,740 and TL 19,517,370, respectively, regarding the total TL 75 million cash capital increase of Isbank’s subsidiary, Bayek Tedavi Sağlık Hizmetleri ve İşletmeciliği A.Ş., in two calls, TL 50 million of which will be made in 2011 and TL 25 million in 2012, to pay the Bank’s commitment in line with the Resolution of the Board of Directors, to let the Bank subscribe for the unused preferential rights and to pay the amount subscribed as mentioned above.

As per the Resolution of the Board of Directors dated 14.02.2011, the Head Office is authorized to sell Isbank’s 20.6% stake in Arap Türk Bankası A.Ş. corresponding to shares with a nominal value of TL 49,382,069 to Libyan Foreign Bank and to individuals or corporates, which are deemed fit to be sold to by the related bank at a total cost of TL 85,295,245.03 and to sign all kinds of documents including the share transfer contract and to fulfill the task.

Reference: Isbank's public disclosures on 25/10/2010 and 15/12/2010.

Related to Isbank’s acquision of 100% of Closed Joint Stock Company Bank Sofia operating in Russia, approval of the Russian Government Commission has been taken. The process of obtaining the permission of the Russian Central Bank is in progress.

Subject: Issue of Borrowing Instrument – Finalization of the Sale

Attached below is the result of the issuance of discount bonds by Türkiye İş Bankası A.Ş. with a nominal value of TL 600,000,000 and with a term of 393 days, by the permission of the Capital Markets Board dated 24 January 2011, nr. B.02.1.SPK.0.13-105.04.02-122-922, as per the Board Registry Document 2/T-55.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/47580.pdf

Subject: Issue of Borrowing Instrument – Finalization of the Sale

Attached below is the result of the issuance of bills by Türkiye İş Bankası A.Ş. with a nominal value of TL 500,000,000 and with a term of 176 days, by the permission of the Capital Markets Board dated 24 January 2011, nr. B.02.1.SPK.0.13-105.04.02-122-922, as per the Board Registry Document 4/BB-55.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/47581.pdf

The offering circulars, which are related to the public offering of Isbank’s bonds and bills and which have been certified by the Capital Markets Board on 24 January 2011, are attached hereto.

The book building will be realized on February 2nd, 3rd and 4th.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/47361.pdf

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/47362.pdf

Reference: Isbank's public disclosure on 27/01/2011.

Regarding the domestic issuance of TL denominated bills and/or bonds up to TL 5 billion with different maturities, Isbank Board of Directors decided to authorize the Head Office to issue bills with a nominal value of TL 500 milion and bonds with a nominal value of TL 600 million via public offering, to determine the maturity, interest rate, principles of distribution and allocations related to this issuance, to complete the sales process and to put all the necessary procedures into effect, including the listing of the issuance on Istanbul Stock Exchange.

Reference: Isbank's public disclosure on 21/01/2011.

Regarding the domestic issuance of TL denominated bills and/or bonds up to TL 5 billion with different maturities, the prospectus, which has been certified by the Capital Markets Board and registered by İstanbul Trade Registry Office, is attached hereto.

http://www.kap.gov.tr/yay/Download/Bildirim/Ek/47308.pdf

In various media, there has been news that Isbank and its affiliates were to be grouped under two holding companies, one being financial and the other industrial.

There has not been any decision made on this subject by the Board of Directors.

Reference: Isbank's public disclosure on 13/12/2010.

It was announced with the abovementioned disclosure that Türkiye İş Bankası A.Ş. had applied to the Capital Markets Board to issue TL denominated bills and/or bonds up to TL 5 billion with different maturities.

It is announced in Weekly Bulletin Nr.2011/3 of the Capital Markets Board that the aforementioned bills and/or bonds have been registered to the CMB.

Reference: Isbank's public disclosures on 01/12/2010 and 09/12/2010.

It was announced with the abovementioned disclosures that the Board of Directors of Türkiye İş Bankası A.Ş., had decided to authorize the Head Office to issue TL denominated bills and/or bonds up to TL 5 billion with different maturities and within the framework of the related issuance, to apply to the Capital Markets Board, Banking Regulation and Supervision Agency and to other legal authorities and that within this framework, Isbank applied to BRSA.

Within this context, Isbank was informed that BRSA approved the issuance of TL denominated bills and/or bonds up to TL 5 billion with different maturities in Turkey.

Related to the news on a daily newspaper on 6 January 2011, it is considered necessary to make the following announcement.

Isbank makes all the necessary disclosures that are required within the framework of the regulations, which it is subject to, in compliance with the legal regulations and the Turkish Financial Reporting Standards, both through the notes to its financial statements and through material disclosures. Within this framework, necessary disclosures have always been made by taking the stated rules and standards into consideration.

The tax assessments that were mentioned in the related news and that were the subject of dispute, amount approximately to TL 632 million, about TL 254 million of which is the principal amount and about TL 378 million of which is the fine. The related tax assessments were taken to court by the Bank in the related period and as a result of the examinations and evaluations made thereon the related tax assessments were cancelled by the tax court. The tax administration appealed these decisions that are in favor of the Bank and the cases are still to be resolved at the State Council.

As a result of the evaluation of the possible outcomes of the law suit process within the context of the Turkish Accounting Standard Number 37 that is part of the regulation on accounting and preparation of financial statements, by which the Bank is bound, it has been understood that there was no need to set aside provisions and to make disclosures in the notes to the financial statements. In cases where a conclusion is made that there is an obligation to set aside provisions or to make explanations as per the regulations, the related disclosures are made in the Bank’s financial statements and necessary provisions are set aside. As a matter of fact, the provisions and explanations that falls into this category are presented in the Bank’s published financial statements and annexes.

On the other hand, the free provisions that are allegedly associated in the newspaper article with the tax cases, is not set aside in connection with a certain liability, but allocated by the Bank management as per the conservatism principle considering the potential circumstances and risks which may arise from any changes in the economy or market conditions.

As per the agreement signed with Girişim Varlık Yönetim A.Ş. on the sale of non-performing loans, TL 300,400,752 of Isbank’s non-performing loans were transferred to the afore-mentioned company in exchange for TL 50,827,898.

As per the agreement signed with LBT Asset Management A.S. on the sale of non-performing loans, TL 41,925,183 of Isbank’s non-performing loans, TL 13,404,417 of which were previously written off, were assigned and transferred to the afore-mentioned company in exchange for TL 6,487,053.

In relation to our public disclosure dated 25.10.2010, Banking Regulation and Supervision Agency granted Isbank the necessary authorization to purchase Closed Joint Stock Company Bank Sofia, which operates in Russia.

Reference: Isbank's public disclosures on 01/12/2010 and 09/12/2010.

It was announced with the abovementioned disclosure dated 01/12/2010 that the Board of Directors of Türkiye İş Bankası A.Ş., had decided to authorize the Head Office to issue TL denominated bills and/or bonds up to TL 5 billion with different maturities and within the framework of the related issuance, to apply to the Capital Markets Board, Banking Regulation and Supervision Agency and to other legal authorities; and with the disclosure made on 09/12/2010 the aforementioned application to BRSA for the related issuance in Turkey was announced by Türkiye İş Bankası A.Ş.

Within this context, Isbank applied to Capital Markets Board and Istanbul Stock Exchange for the issuance of TL denominated bills and/or bonds up to TL 5 billion with different maturities in Turkey.

Reference: Isbank's public disclosure on 01/12/2010.

It was announced with the abovementioned disclosure that the Board of Directors of Türkiye İş Bankası A.Ş., had decided to authorize the Head Office to issue TL denominated bills and/or bonds up to TL 5 billion with different maturities and within the framework of the related issuance, to apply to the Capital Markets Board, Banking Regulation and Supervision Agency and to other legal authorities.

Within this context, Isbank applied to BRSA for the issuance of TL denominated bills and/or bonds up to TL 5 billion with different maturities in Turkey.

The loan agreement amounting to EUR 50 million with a maturity of 12 years was signed between Isbank and Societe de Promotion et Participation pour la Coopération Economique S.A. (Proparco) on 09.12.2010. The loan will be used for financing the renewable energy and energy efficiency projects of private sector firms in Turkey.

Fitch Ratings changed the outlook on Isbank's "BBB-" long-term local and foreign currency Issuer Default Rating to "Positive" from "Stable"; Fitch Ratings stated no change in Isbank's other ratings and outlooks.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

At their meeting on 30.11.2010, the Board of Directors of Türkiye İş Bankası A.Ş., decided to authorize the Head Office to issue TL denominated bills and/or bonds up to TL 5 billion with different maturities and within the framework of the related issuance, to apply to the Capital Markets Board, Banking Regulation and Supervision Agency and to other legal authorities.

The sale of a real estate is completed for a total amount of TL 246,000. As per the resolution of the Board of Directors dated 11.11.2010, the Head Office is authorized to keep TL 77,997 of the total profit amounting to TL 103,996.64 gained from the aforementioned sale, in a separate account under liabilities and to use it, if necessary, in capital increase.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

On 11.11.2010, İşbank signed a USD 50 million credit agreement with the Export-Import Bank of Korea (KEXIM) in İstanbul.

Within the framework of the credit agreement, it will be possible to provide medium and long term financing in relation to the import of investment goods from South Korea to Turkey, as well as to grant loans based on the sales agreements between Korean firms in Turkey and firms that do business with them and to secure working capital loans to Korean firms in Turkey.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

	Resolution Date of the Board of Directors Regarding the Acquisition		25.10.2010
	Name of the Financial Asset Acquired		Closed Joint Stock Company Bank Sofia
	Business Line of the Financial Asset Acquired		Banking
	Capital of the Financial Asset Acquired		RUR 523,048,230
	Acquisition Method of the Financial Asset		Purchasing
	Completion Date of the Transaction		It is expected to be completed within 1 year following the signing of the Share Purchasing Agreement
	Conditions for Acquisition		USD 36 million during the share transfer, USD 4 million within the 1 year period following the share transfer.
	Nominal Value of the Shares Acquired		RUR 523,048,230 (52,304,823 shares)
	Price Per Share		approximately USD 0.76
	Total Amount		USD 40,000,000
	The Percentage of Shares Acquired to the Capital of the Financial Asset (%)		100%
	The Share in the Financial Asset Following the Acquisition (%)		100%
	Percentage in the Voting Rights of the Financial Asset Following the Acquisition (%)		100%
	The ratio of the Financial Asset Acquired to the Total Assets of the Company According to the Last Financial Statement Announced to the Public (%)		0.05%
	Effect on the Activities of the Company		None
	Whether liability for call has occurred		No
	If liability for call has occurred, whether application for exemption will be made		No
	Name of the Selling Party		Nikolay Vasilyevich Shutov, OOO Rabotek, OAO Balakovorezinotekhnika
	Relation of the Selling Party with the Company		-
	Valuation Method of the Financial Asset		Net Asset Value and Comparable Company Value
	Whether Valuation Report is Prepared		Valuation Report is prepared.
	If not, the Reason for not preparing the Valuation Report		-
	The Amount at the Valuation Report		USD 40,000,000
	The Reason for the Discrepancy, if any, between the Transaction and the results of the Valuation Report		-

The Share Purchase Agreement regarding the purchase of % 100 shares of Closed Joint Stock Company Bank Sofia is signed between Türkiye İş Bankası A.Ş. and the Sellers named above, on the date of 25 October 2010, in Moscow.

Bank Sofia, headquartered in Moscow, has 400 employees, total of 6 branches and 7 representative offices in Moscow, Balakovo, Samara, Saint-Petersburg, Saratov and Novosibirsk. As at 31 December 2009, Bank Sofia  has total assets of approximately USD 127 million and shareholders' equity of USD 28 million.

The permissions of the Banking Regulation and Supervision Agency in Turkey, the Government Commission and  the Central Bank of Russia in Russia are required for the share transfer.  The share transfer shall be realized following the necessary permissions from the authorities mentioned before.

In accordance with a  service approach that is customer oriented  and in line with international banking standards,
through Bank Sofia, it is targeted to provide, first of all, mainly corporate and commercial banking services to the Russian companies. It is also targeted  to develop and grow the  current customer portfolio of  Bank Sofia through  Turkish companies operating in Russia. Furthermore,  it is also planned to develop and continue the retail banking activities.


“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank’s public disclosures on 10/08/2010 and 30/09/2010.

As per the Resolution of Isbank Board of Directors dated 14.10.2010, the Head Office is authorized to keep 75% of the sales profit, in accordance with the Tax Procedure Law, gained from the sale of Anadolu Anonim Turk Sigorta Sirketi, one of Isbank’s subsidiaries, in a separate account under liabilities and to use it, if necessary, in capital increase.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Reference: Isbank's public disclosures on 22/09/2010 and 30/09/2010.

As per the Resolution of the Board of Directors dated 07.10.2010, the Head Office is authorized to keep 75% (TL 58,032,590) of the sales profit gained from the sale of Çayırova Cam Sanayii A.Ş., one of Isbank’s subsidiaries, in a separate account under liabilities and to use it, if necessary, in capital increase.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

Moody's changed the outlook on Isbank's "Ba3" long-term foreign currency deposit rating to "Positive" from "Stable"; Moody's stated no change in Isbank's other ratings and outlooks.

“This is a translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. If there is any discrepancy between the Turkish public disclosure and the English translation of it, the Turkish public disclosure shall prevail. The translation is for informational purposes only and is provided by İşbank for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity who relies on information contained in the translation does so at his or her own risk.”

On October 5th, 2010, some media published news regarding Isbank purchasing a bank in Russia.

There has neither been any decision made by the Board of Directors nor a legally binding contract on this subject, so far, and our work is underway regarding purchase of a bank in Russia by the assistance of a consultant firm.

“This is a straightforward translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. The translation is for informational purposes only and is provided by İşbank on a best effort basis for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity that relies on information contained in the translation does so at his or her own risk.”

	Resolution Date of the Board of Directors Regarding the Sale		22.09.2010
	Name of the Financial Asset Sold		Çayırova Cam Sanayii A.Ş.
	Business Line of the Financial Asset Sold		Commercial activity
	Capital of the Financial Asset Sold		TL 9,397,297
	Completion Date of the Transaction		Completed.
	Sales Conditions		Cash payment
	Nominal Value of the Shares Sold		TL 2,966,302
	Price Per Share		TL 27.99
	Total Amount		TL 83,017,215
	The Percentage of Shares Sold to the Capital of the Financial Asset (%)		31.57%
	The Share in the Financial Asset Following the Sale (%)		None.
	Percentage in the Voting Rights of the Financial Asset Following the Sale (%)		None.
	The ratio of the Financial Asset Sold to the Total Assets of the Company According to the Last Financial Statement Announced to the Public (%)		0.005%
	Effect on the Activities of the Company		None.
	Profit / Loss Due to the Sale		TL 77,376,788
	How the Sale Profit, if any, will be used		Not determined yet.
	Resolution Date of the Board of Directors Regarding on How the Sales Profit, if there is any, will be used		-
	Name of the Purchasing Party		Türkiye Şişe ve Cam Fabrikaları A.Ş.
	Relation of the Purchasing Party with the Company		Subsidiary
	Valuation Method of the Financial Asset		Equity method
	Whether Valuation Report is Prepared		Valuation report is prepared by Engin Bağımsız Denetim ve Serbest Muhasebecilik Mali Müşavirlik A.Ş.
	If not, the Reason for not preparing the Valuation Report		-
	The Amount at the Valuation Report		TL 263 million
	The Reason for the Discrepancy, if any, between the Transaction and the results of the Valuation Report		-

“This is a straightforward translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. The translation is for informational purposes only and is provided by İşbank on a best effort basis for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity that relies on information contained in the translation does so at his or her own risk.”

	Resolution Date of the Board of Directors Regarding the Sale		22.09.2010
	Name of the Financial Asset Sold		Camiş Madencilik A.Ş.
	Business Line of the Financial Asset Sold		Glass materials production and sale
	Capital of the Financial Asset Sold		TL 20,142,407
	Completion Date of the Transaction		Completed.
	Sales Conditions		Cash payment
	Nominal Value of the Shares Sold		TL 15,804,257
	Price Per Share		USD 3.55
	Total Amount		USD 56,100,762
	The Percentage of Shares Sold to the Capital of the Financial Asset (%)		78.46%
	The Share in the Financial Asset Following the Sale (%)		None.
	Percentage in the Voting Rights of the Financial Asset Following the Sale (%)		None.
	The ratio of the Financial Asset Sold to the Total Assets of the Company According to the Last Financial Statement Announced to the Public (%)		0.03%
	Effect on the Activities of the Company		None.
	Profit / Loss Due to the Sale		TL 47,527,656.09
	How the Sale Profit, if any, will be used		It is decided to keep 75% of the profit (TL 35,645,742.00) gained from the sale in a separate account to be added to capital.
	Resolution Date of the Board of Directors Regarding on How the Sales Profit, if there is any, will be used		30.09.2010
	Name of the Purchasing Party		Türkiye Şişe ve Cam Fabrikaları A.Ş.
	Relation of the Purchasing Party with the Company		Subsidiary
	Valuation Method of the Financial Asset		Discounted Cash Flow and Comparison with similar Listed Companies
	Whether Valuation Report is Prepared		Valuation report is prepared by DRT Kurumsal Finans Danışmanlık Hizmetleri A.Ş.
	If not, the Reason for not preparing the Valuation Report		-
	The Amount at the Valuation Report		USD 71.5 million
	The Reason for the Discrepancy, if any, between the Transaction and the results of the Valuation Report		-

“This is a straightforward translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. The translation is for informational purposes only and is provided by İşbank on a best effort basis for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity that relies on information contained in the translation does so at his or her own risk.”

	Resolution Date of the Board of Directors Regarding the Acquisition		22.09.2010
	Name of the Financial Asset Acquired		Türkiye Şişe ve Cam Fabrikaları A.Ş.
	Business Line of the Financial Asset Acquired		Holding Company
	Capital of the Financial Asset Acquired		TL 1,144,000,000
	Acquisition Method of the Financial Asset		Purchasing
	Completion Date of the Transaction		Completed.
	Conditions for Acquisition		Purchase of shares has been effected according to the ISE Wholesale Market  Procedure Guidelines.
	Nominal Value of the Shares Acquired		TL 46,259,206.98
	Price Per Share		TL 2.42
	Total Amount		TL 111,947,280.89
	The Percentage of Shares Acquired to the Capital of the Financial Asset (%)		4.04%
	The Share in the Financial Asset Following the Acquisition (%)		68.15%
	Percentage in the Voting Rights of the Financial Asset Following the Acquisition (%)		68.15%
	The ratio of the Financial Asset Acquired to the Total Assets of the Company According to the Last Financial Statement Announced to the Public (%)		-
	Effect on the Activities of the Company		-
	Whether liability for call has occurred		No
	If liability for call has occurred, whether application for exemption will be made		No
	Name of the Selling Party		Trakya Cam San. A.Ş., Çayırova Cam San. A.Ş., Paşabahçe Cam San.ve Tic. A.Ş., Paşabahçe Eskişehir Cam San.ve Tic. A.Ş., Cam Elyaf San. A.Ş., Camiş Madencilik A.Ş.
	Relation of the Selling Party with the Company		Subsidiary
	Valuation Method of the Financial Asset		The purchase of shares has been realized at the ISE Wholesale Market by using the base price which has been determined by rounding the average of the weighted average prices that were formed in 10 business days prior to the last business day of the week before the application date, to the nearest price tick.
	Whether Valuation Report is Prepared		Valuation Report is not prepared.
	If not, the Reason for not preparing the Valuation Report		There is no requirement for preparing a valuation report.
	The Amount at the Valuation Report		Valuation Report is not prepared.
	The Reason for the Discrepancy, if any, between the Transaction and the results of the Valuation Report		Valuation Report is not prepared.

“This is a straightforward translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. The translation is for informational purposes only and is provided by İşbank on a best effort basis for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity that relies on information contained in the translation does so at his or her own risk.”

Reference: Our ISE disclosure on May 10th, July 28th and August 10th, 2010.


As per the resolution of the Board of Directors dated 10.05.2010, the sale of İşbank's 35.53% share in the TL 500,000,000 capital of Anadolu Anonim Türk Sigorta Şirketi to the group company Milli Reasürans T.A.Ş., which is controlled by İşbank, has been effected at the ISE Wholesale Market.

The sale of shares were effected at the ISE Wholesale Market at 1.40, which is 20% more than the base price which was determined by rounding the average of the weighted average prices that were formed in 10 business days prior to the last business day of the week before 27.09.2010, which is the application date, to the nearest price tick. The sales amount is TL 248,710,154.

There is not any resolution yet regarding the use of the profit from the sale of participation amounting to TL 9,198,826.

Following the sale, İşbank has no direct share left  in the capital of the company.

“This is a straightforward translation of the original public disclosure in Turkish made by İşbank through the Public Disclosure Platform (www.kap.gov.tr), which is to be accepted as the main source of public disclosures. The original public disclosure in Turkish is the only definitive and official version. The translation is for informational purposes only and is provided by İşbank on a best effort basis for convenience to non-Turkish speaking parties. However, İşbank cannot guarantee the accuracy, completeness or correctness of the translation. İşbank does not accept any liability whatsoever for any direct or consequential loss arising from any use of this translation due to any misleading information that may be found in the translation. Any person or entity that relies on information contained in the translation does so at his or her own risk.”

Reference: Our ISE disclosure on September 15th, 2010.

On 20.09.2010, Isbank signed an agreement in London, for a syndicated loan of approximately USD 1.2 billion, total of USD 325 million and equivalent of EUR 649 million.

The costs for the parts amounting to USD 280 million and EUR 534 million with a term of one year maturity are Libor + 1.30% and Euribor + 1.30%; while the costs for the parts amounting to USD 45 million and EUR 115 million with a term of two years are Libor + 1.75% and Euribor + 1.75%, respectively. The syndicated loan was raised by the participation of 53 banks from 20 countries.

On September 15th, 2010, Isbank authorized the consortium of international banks to secure a syndicated loan in USD and in EUR, with terms of one year and two years.

As per the resolution of the Board of Directors dated 16.08.2010, the exercise of the pre-emptive rights of EUR 30,000,000 in EUR 30,000,000 cash capital increase of our subsidiary Isbank GmbH, which is planned to be completed in 2011, is approved and the Head Office is authorized to exercise this right.

Reference: Our ISE disclosures on May 10th, 2010 and July 28th, 2010.

Turkish Competition Authority determined that the sale of  Isbank’s 35.53% share in the capital of Anadolu Anonim Türk Sigorta Şirketi to the group company Milli Reasürans T.A.Ş.  should not be considered within the scope of the Article 7 of the Law Nr: 4054 and the related “Communiqué on the Mergers and Acquisitions Calling for the Authorization of the Competition Board (1997/1)” due to the related parties’ being in the same economic integrity.

Reference: Our ISE disclosure on May 10th, 2010.

The Undersecreteriat of Turkish Treasury  granted Isbank the necessary authorization to sell Isbank’s 35.53% share in the capital of Anadolu Anonim Türk Sigorta Şirketi to the group company, Milli Reasürans T.A.Ş. 

With regard to the news published in the media about the sale of Isbank’ s 20.58% shares  in Arab Turkish Bank, there has been no decision made by the Board of Directors on this topic so far.

Banking Regulation and Supervision Agency granted Isbank the necessary authorization to open branches in the cities of Baghdad and Arbil, in the Republic of Iraq.

On June 24th, 2010 various media published news regarding Isbank’s purchase of a bank in Russia.

Regarding the above mentioned news, neither there has been any decision made by the Board of Directors nor there is any legally binding agreement so far, and we continue our efforts on purchasing a bank in Russia by the assistance of a consultant firm.

The Collective Bargaining Agreement between Isbank and the Labor Union of Bank and Insurance Workers (BASISEN) for the  Period between 01.04.2010 – 31.03.2012 was signed as of June 24th, 2010.

Representative office of Isbank in Arab Republic of Egypt (Phone number: + 2022 461 98 13-14, Fax number: + 2022 461 98 10) was opened in Cairo on June 21st, 2010.

On 18.06.2010, Isbank signed an agreement with European Bank for Reconstruction and Development (EBRD) to secure EUR 20 million loan with a maturity of five years. The loan will be used for MSMEs (Micro, Small and Medium Enterprises) financing.

As per the resolution of the Board of Directors dated 27.05.2010, nr. 36485, the Head Office is authorized to take the necessary initiatives for opening branches in the cities of  Baghdad and Erbil in the Republic of Iraq.

On 25.05.2010, Isbank signed an agreement, in Istanbul, for a syndicated loan with dual tranche for USD 193.5 million and EUR 565.2 million. The syndicated loan, which was raised by participation of 48 banks from 21 countries will be used for financing international trade. The cost of the part that belongs to the banks with highest shares has been realized as Libor +1.5% and Euribor +1.5%, respectively. The one-year syndicated loan has one-year extension option.

On May 21st, 2010, Isbank authorized the consortium of international banks to secure a syndicated loan of two tranches, in USD and in EUR, with a term of one year.

The sale of two real estates is completed for a total amount of TL 12,684,720. As per the resolution of the Board of Directors dated 14.05.2010, the Head Office is authorized to keep TL 9,156,299 of the total profit amounting to TL 12,208,399.15 gained from the aforementioned sale, in a separate account under liabilities and to use it, if necessary, in capital increase.

As per the resolution of the Board of Directors dated 10.05.2010, it was decided to sell İşbank’s 35.53% share in the TL 425,000,000 capital of Anadolu Anonim Türk Sigorta Şirketi to the group company Milli Reasürans T.A.Ş., which is controlled by İşbank, and the Head Office is authorized to carry out the related transactions regarding the sale.

Transfer of the shares will be effected following the granting of required permission from the Treasury and The Competition Authority.

Sale of the shares will be realised at the ISE Wholesale Market.

The sale of shares will be realized at the ISE Wholesale Market by using the base price which will be determined by rounding the average of  the weighted average prices that were formed in 10 business days prior to the last business day of the week before the application date,  to the nearest price tick.

There is no resolution yet regarding the use of possible sale profit from the participation.

Following the sale, İşbank will not have any direct share in the capital of the company.

The sale of a real estate is completed for a total amount of TL 5,500,000. As per the resolution of the Board of Directors dated 14.04.2010, the Head Office is authorized to keep TL 1,054,784 of the total profit amounting to TL 1,406,378.81 gained from the aforementioned sale, in a separate account under liabilities and to use it, if necessary, in capital increase.

At Isbank’s General Meeting held on March 31st, 2010, in Istanbul, the following issues have been resolved.

RESOLUTIONS MADE AT ISBANK’S GENERAL MEETING HELD ON MARCH 31st, 2010, IN ISTANBUL

1. It was decided to authorize the Chairmanship Council to sign Minutes of the General Meeting.
2. The Board of Directors’, Auditors’ and Independent Auditors’ Reports have been read and discussed.
3. The Balance Sheet and the Profit and Loss Account for the year 2009 have been ratified.
4. The Board of Directors has been acquitted with regards to transactions and accounts in the year 2009.
5. The Auditors have been acquitted with regards to transactions and accounts in the year 2009.
6. Resolution was made to distribute dividend starting from April 1st, 2010 as stated in the attachments.
7. Monthly payment of TL 7,700 was designated to the Board members.
8. Prof. Dr. Turkay Berksoy and Ayse Taciser Bayer were elected as auditors for the year 2010.
9. The monthly remuneration of the auditors was determined as TL 4,015.
10. The shareholders were informed on the endowments made during the year 2009.
11. The shareholders were informed on the Independent Audit Firm, from which independent audit and IT systems audit services will be received in the fiscal period of 2010-2012.

Please click to view the Profit Distribution Table ve Minutes of the AGM (in Turkish).

Please click to view the Profit Distribution Table.

Total Gross Dividend to be Distributed in Cash (TL)	551,000,000.00
Cash Dividend to be Distributed for Each Share Traded with a Nominal Value of TL 1
Group A Gross (TL)	0.345397
Group B Gross (TL)	0.202698
Group C Gross (TL)	0.178915
1 Founder Share Gross (TL)	1.979491
Group A Net (TL)	0.293587
Group B Net (TL)	0.172294
Group C Net (TL)	0.152078
1 Founder Share Net (TL)	1.682567
Cash Dividend Distribution Date	01.04.2010

The negotiations for the Collective Bargaining Agreement between Isbank and the Labor Union of Bank and Insurance Workers (BASISEN) for the 22nd Period have started as of today.

As per the resolution of the Board of Directors dated 04.03.2010, it is decided that the Annual General Meeting of Turkiye Is Bankasi A.S. will be held on Wednesday, 31^st March 2010, at 14:00 p.m. at Is Kuleleri, 34330 - Levent/ Istanbul, during which the following agenda topics will be discussed.

Agenda of The Annual General Meeting

1. Opening Ceremony, establishment of Chairmanship Council and authorization of the Chairmanship Council to sign Minutes of the General Meeting,
2. Presentation of and discussion on the Board of Directors’, Auditors’ and Independent Auditors’ Reports,
3. Examination and ratification of 2009 Balance Sheet and Income Statement,
4. Discharge of the Board of Directors from their responsibilities for the transactions and accounts of the year 2009,
5. Discharge of the Auditors from their responsibilities for the transactions and accounts of the year 2009,
6. Determination of the dividend distribution and the method and date of allotment of dividends,
7. Determination of the allowance for the members of the Board of Directors,
8. Election of the Auditors for 2010,
9. Determination of the Auditors’ salaries,
10. Presenting information to shareholders about the donations made during the year 2009.
11. Presenting information to shareholders about the Independent Audit Firm that will provide services on independent audit and information systems audit during the accounting period 2010-2012.

Please click to view the Proxy Statement.

The process of increasing the paid in capital of Isbank from TL 3,079,638,671 to TL 4,500,000,000 has been completed and the paid in capital of Isbank has been registered at the Trade Registry as TL 4,500,000,000.

As per the resolution of the Board of Isbank dated 23.02.2010, it is decided to propose to the General Assembly the distribution of TL 2,372,407,037.66 net profit for the year 2009 as follows.

International credit rating agency, Standard and Poor’s, raised the long-term counter party credit rating of Isbank to “BB” from “BB-” and the outlook from “stable” to “positive”. At the same time, the Bank’s long-term certificate of deposits is raised from “BB-” to “BB” and the long-term Turkey national scale rating is upgraded from “trA+” to “trAA”. The agency affirmed the Bank’s both short-term counter party credit rating and short-term certificate of deposits as “B” and the short-term Turkey national scale rating as “trA-1”.

The disclosure related to the distribution of the shares to be issued  due to the increase of Isbank’s paid in capital from TL 3,079,638,671 to TL 4,500,000,000 is stated below.

DISCLOSURE MADE BY THE BOARD OF TURKIYE IS BANKASI A.S. ON THE DISTRIBUTION OF BONUS SHARES

The shares issued to increase the TL 3,079,638,671 paid in capital to TL 4,500,000,000 within Isbank's registered capital ceiling of TL 7,000,000,000, were registered by Capital Markets Board of Turkey on 17.02.2010 with the number 7/68. TL 1,383,177.88 increase will be covered by bonus shares received from participations, TL 1,057,425,285.70 increase will be covered by the extraordinary reserves and TL 361,552,865.42 increase will be covered by paid-in capital inflation adjustments. However, the registration does not mean that our corporation or its shares are guaranteed by the Capital Markets Board or by the state.

Of the shares representing the increased capital amount of TL 1,420,361,329, shareholders that own Group A shares have the right to obtain 3,689.48419%, shareholders that own Group B shares have the right to obtain 184.47421%, and shareholders that own Group C shares have the right to obtain 46.11855% bonus Group C shares.

The issued shares shall be eligible to receive dividends for the financial year 2010, and dividends shall be distributed to these shares for the first time from the 2010 net profit, in case there is any profit distribution.

Bonus share receivables related to the current dematerialized shares will be recorded to our shareholders' accounts by the Central Registry Agency starting from 24.02.2010.

As per the provisional Article 6 of the Capital Markets Law, the Central Registry Agency will keep record of the financial and managerial rights of the shares that are not dematerialized. In the event of dematerialization, financial rights will be transferred to the account of the shareholder and the managerial rights will be exercised by the shareholder.

Related to the news on various media regarding Isbank’s profit distribution, it is considered necessary to make the following announcement.

Part of the 2009 profit to be set aside for reserves and the part to be allocated to shareholders will be determined by the General Assembly, as usual, in accordance with Bank’s articles of incorporation and related legislation, and no decision has been made yet on this subject by the authorities  of the Bank.

The sale of a real estate is completed for a total amount of TL 2,005,000. As per the resolution of the Board of Directors dated 12.02.2010, the Head Office is authorized to keep TL 1,114,543 of the total profit amounting to TL 1,486,057.36 gained from the aforementioned sale, in a separate account under liabilities and to use it, if necessary, in capital increase.

Related to the news on various media that Isbank will issue Eurobonds, it is considered necessary to make the following announcement.

In line with its yearly borrowing strategy, Isbank is evaluating various funding options including the issue of Eurobonds in Turkish Lira in the international capital markets. The completion, timing and pricing of the Eurobond issue are subject to the market conditions; and the necessary public disclosure will be made upon the finalization of the aforementioned conditions.

In relation to the letter of the Istanbul Stock Exchange dated 10.02.2010, nr. IMKB/24-GDD-210/39-1843, the disclosure with regard to the Article 17 of the Capital Markets Board’s “Communiqué on Principles Regarding Public Disclosure of Material Events (Serial: VIII, Nr: 54)”, is provided below.

There is no publicly undisclosed material event related to the extraordinary fluctuations on the price and transaction volume of Isbank’s Group A and B shares.

The movement of prices and transaction volume of Isbank’s Group C shares occurred in line with the usual market conditions.

Banking Regulation and Supervision Agency granted Isbank the necessary authorization to open a representative office in Damascus, Arab Republic of Syria.

Isbank Deputy Chief Executives Kadir Akgöz and Kayhan Söyler demanded their retirements as of January 31st, 2010.

The sale of a real estate is completed for a total amount of TL 390,000. As per the resolution of the Board of Directors dated 11.01.2010, the Head Office is authorized to keep TL 194,656 of the total profit amounting to TL 259,542.28 gained from the aforementioned sale, in a separate account under liabilities and to use it, if necessary, in capital increase.

International credit rating agency, Moody's, upgraded the long-term foreign currency deposit rating of Isbank to “Ba3” from “B1”. At the same time, the Bank’s long and short term local currency deposit ratings were affirmed as “Baa2” and “P-2”, respectively. All ratings have a stable outlook.

As per the resolution of the Board of Directors dated 31.12.2009, the Head Office is authorized to take the necessary initiatives for opening a representative office in Syrian Arab Republic.

The external audit contract between Isbank (the Bank) and DRT Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (Deloitte) will expire following the independent audit as of 31.12.2009. According  to Article 12 and Provisional Article 2 of the “Regulation on Authorization and Activities of Institutions to Perform External Audit in Banks”, the Bank is obliged to appoint a new external audit company starting from the financial year 2010.

Accordingly, as per the resolution of the Board of Directors on 17.12.2009, it is decided that independent audit of Isbank will be conducted by Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A. Ş. (a member firm of KPMG International) starting from 31.03.2010 for the following three-year period.

The international credit rating agency Fitch Ratings upgraded/affirmed Isbank’s ratings as follows:

Long-term (LT) foreign currency IDR upgraded to 'BBB-' from 'BB'; assigned Stable Outlook
LT local currency IDR affirmed at 'BBB-'; assigned Stable Outlook
Short-term (ST) foreign currency IDR upgraded to 'F3' from 'B'
ST local currency IDR affirmed at 'F3'
National LT rating affirmed at 'AAA(tur)'; Stable Outlook
Individual rating affirmed at 'C'
Support rating upgraded to '3' from '4';
Support Rating Floor revised to 'BB' from 'B+'

Fitch Ratings stated that Isbank’s Long-term IDRs are driven by its intrinsic financial strength which is reflected in its Individual rating of 'C'. In the disclosure of the rating agency, it is announced that Isbank’s Long-Term Local Currency IDR is rated one notch above the sovereign’s Long-Term Local Currency IDR and Long-Term Foreign Currency IDR is rated at the Country Ceiling level and is not constrained. 

On 10.12.2009, the Central Bank of Egypt granted Isbank the necessary preliminary authorization to open a representative office in Cairo, Arab Republic of Egypt.

The ‘General Agreement’ amounting to JPY 10 billion at maximum (approximately USD 115 million) was signed in Istanbul on 03.12.2009 between Isbank and Japan Bank for International Cooperation (JBIC), which is the international division of Japan Finance Corporation (JFC) and which was founded to support Japan’s export activities. The related amount will be used to finance the medium and long-term ship imports of Turkish importers from Japanese exporters. According to the ‘General Agreement’, Isbank will be enabled to extend loans for a maximum maturity of 12 years and up to 80% of the amount of the contract which is signed in JPY between Turkish companies and Japanese exporters.

“General Agreement” amounting JPY 10 billion (approximately USD 115 million) at maximum will be signed between Isbank and Japan Bank for International Cooperation (JBIC) in Istanbul on 03.12.2009. The amount will be used to finance medium and long term ship imports of Turkish importers from Japan exporters. Details of the loan will be announced following the finalization of the agreement.

As per the agreement signed today with Standard Varlık Yönetim A.Ş. on the sale of non-performing loans, TL 186,113,688 of Isbank’s non-performing loans were transferred to the above mentioned company in exchange of payment of TL 8,500,000 in cash and 40% of the gross collections made by the company with respect to the NPL portfolio on sale.

As per the resolution of the Board of Directors, dated 24.11.2009, nr.35981, the Head Office is authorized to

- increase Isbank’s TL 3,079,638,671 paid-in capital to TL 4,500,000,000 by a total amount of TL 1,420,361,329;

•  TL 1,383,177.88 of which is from the bonus shares received from participations, 
•  TL 1,057,425,285.70 of which is from the extraordinary reserves, including TL 71,575,948.00 of profit from sale of participations and real estates, that is followed under extraordinary reserves and will be added to the capital as per the resolutions made at the General Meeting, and
•  TL 361,552,865.42 of which is from the paid-in capital inflation adjustments, and

- apply to the related authorities for the capital increase and to carry out the capital increase process.

As per the agreement signed today with LBT Asset Management A.S. on the sale of non-performing loans, TL 37,823,581 of Isbank’s non-performing loans were transferred to the above mentioned company in exchange for TL 9,550,000 (25%).

International credit rating agency, Moody’s, upgraded Isbank’s Bank Financial Strength rating to “C-” from “D+”. According to the disclosure made by the agency, the upgrade of the stand-alone rating, which measures a bank’s intrinsic financial strength, without benefit given for the potential of outside support, reflects the Bank’s strengthening financial fundamentals and earnings resilience in the midst of the global recession.

Moody’s downgraded the Bank’s Long-term Local Currency Deposit rating to “Baa2” with a stable outlook from “A3”, within the context of Moody’s global review of systemic support available to banks. Moody’s confirmed the Bank’s “Prime-2” Short-term Local Currency Deposit rating, whereas its other ratings remained unaffected.

The sale of a real estate is completed for a total amount of TL 3,047,959,32. As per the resolution of the Board of Directors dated 12.10.2009, the Head Office is authorized to keep TL 1,609,156 of the total profit gained from the sale of real estate amounting to TL 2,145,542.13, in a separate account under liabilities and to use it, if necessary, in capital increase.

“L/C Refinancing Master Agreement” amounting USD 100 million at maximum was signed between Isbank and The Export-Import Bank of China in Istanbul on 07.10.2009. The amount will be used to finance Turkish companies up to one year, for the import of certain goods and services from China through the issuance of letter of credit. Aforementioned agreement was settled within the context of the USD 100 million framework agreement that was signed on 25.06.2009 in Beijing between Isbank and The Export-Import Bank of China.

Moody’s has changed the outlook on Isbank’s “B1” long-term foreign currency deposit rating to “Positive” from “Stable”, Moody’s stated no change in Isbank’s other ratings and outlooks.

Standard & Poor’s has changed the outlook on Isbank’s “BB-” Long term Counter Party Credit rating to “Stable” from “Negative” and upgraded the Long-term National Scale rating to “trA+” from “trA”. Standard & Poor's has also affirmed Isbank's Long and Short term Counter Party Credit ratings at “BB-/ B” and Short-term National Scale rating at “trA-1”.

As per the agreement signed by Turkiye Is Bankasi A.S. on 14.09.2009, the term of USD 350 million and EUR 293.5 million of the syndicated loan dated 22.09.2008 was extended for one year. The loan was extended with the participation of 41 international banks and will be used for trade financing. The total cost of the loan for the banks which participated with the highest amounts, was realized at Libor+2.25% and Euribor+2.25%, respectively.

As per the resolution of the Board of Directors dated 10.06.2009 regarding the excercise of our pre-emptive rights of TL 22,824,495 in TL 33,500,000 cash capital increase of our subsidiary Bayek Tedavi Saglik Hizmetleri Isletmeciligi A.S., and our commitment to pay the unused pre-emptive rights in cash and in one payment, Isbank’s share of TL 22,824,494.75 call payment was made on August 21, 2009. And as of today, TL 6,409,145.06 is transferred to the subsidiary accounts related to the unused pre-emptive rights. Our 68.13 % share in our subsidiary before the capital increase, reached 78.07% as a result of the use of pre-emptive rights.

Pursuant to the Competition Board Decisions dated 19.08.2009 and numbered 09-36/919-M and dated 24.08.2009 and numbered 09-37/924-M, it has been decided, under the Act nr. 4054 on the Protection of Competition, that an investigation should be initiated against 8 banks, including Türkiye İş Bankası A.Ş., with the allegation that they had agreed on the promotional offers to be made to public institutions and private companies regarding the salary payments.

The sale of a real estate is completed for a total amount of TL 1,800,000. As per the resolution of the Board of Directors dated 14.08.2009, the Head Office is authorized to keep TL 1,031,473 of the total profit gained from the sale of real estate amounting to TL 1,375,297.83, in a separate account under liabilities and to use it, if necessary, in capital increase.

On August 3rd, 2009, the international credit rating agency Moody’s Investors Service changed the outlook on Isbank’s bank financial strength rating to “Stable” from “Positive”.

Also, Moody’s placed Isbank’s local currency deposit ratings on review. In the disclosure of the rating agency, it is stated that the rating action was taken within the context of its global review of the systemic support available to banking systems, following the global financial crisis.

The international credit rating agency Fitch Ratings affirmed Isbank’s ratings. Isbank’s current ratings are as follows:

Long-term (LT) foreign currency IDR affirmed at 'BB'; Outlook Stable
Short-term (ST) foreign currency IDR affirmed at 'B'
LT local currency IDR affirmed at 'BBB-'; Outlook Stable
ST local currency IDR affirmed at 'F3'
Individual rating affirmed at 'C'
Support rating affirmed at '4'
National LT rating affirmed at 'AAA(tur)'; Outlook Stable
Support Rating Floor affirmed at 'B+'

Fitch Ratings stated that Isbank's LT local currency IDR reflects the Bank’s stand-alone financial strength and that it is rated two notches above the sovereign's. It is also stated that the individual rating indicates Isbank's strong franchise within Turkey, as the largest private bank in terms of total assets, customer deposits, TL-denominated loans and branch network at the end of 2009-Q1.

As per the resolution of the Board of Directors dated 09.07.2009, it is decided that Isbank will participate in Kredi Garanti Fonu A.Ş. (Credit Guarantee Fund) with an amount up to TL 4 million, and that the Bank will have a subscription for an amount of TL 4 million for the future planned capital increase. The Head Office is authorized to set the principles and procedures related to the above mentioned subject.

Isbank and The Export-Import Bank of China have signed on 25.06.2009 in Beijing a framework agreement for USD 100 million which will be used for trade financing between Turkey and China.

Within the context of the framework agreement, financing of export/import transactions on certain goods and services will be feasible. The loan will be used for short, medium/long term financing, letter of credit refinancing, against guarantees which are given by both sides.

A framework agreement on credit line for trade finance for USD 100 million will be signed on 25.06.2009 in Beijing between Isbank and The Export-Import Bank of China. Details of the aforementioned credit which is planned to be used for financing export/import trade of certain goods and services between Turkey and China will be announced after the agreement is signed.

The process of increasing the paid in capital of Isbank from TL 2,756,585,000 to TL 3,079,638,671 has been completed and the paid in capital of Isbank has been registered at the Trade Registry as TL 3,079,638,671.

The process of securing USD 40,100,000 loan, which is obtained by the intermediation of Türkiye Sınai Kalkınma Bankası’(TSKB) as part of Fourth Export Finance Intermediary Loan(EFIL IV), from subsidiary company of World Bank namely International Bank for Reconstruction and Development (IBRD) has been concluded. There will not be a principal payback for the loan, which will be used for foreign trade financing, until 15.01.2011 and the final maturity will be 15.07.2014.

As per the resolution of the Board of Directors dated 10.06.2009 regarding the TL 33.500.000 cash capital increase of our subsidiary Bayek Tedavi Saglik Hizmetleri Isletmeciligi A.S., the Head Office is authorized;

• to exercise Isbank’s pre-emptive rights of TL 22.824.495 and to pay, in cash and in one payment, our commitment as per the resolution of the company’s Board of Directors
• to commit the unused pre-emptive rights and to pay, in cash and in one payment, our commitment as per the resolution of the company’s Board of Directors.

The transactions related to the increase of the paid-in capital of Turkiye Is Bankasi A.S. from TL 2,756,585,000 to TL 3,079,638,671, by TL 323,053,671, which is covered by dividends pertaining to year 2008 earnings, will start as of 11.06.2009.

The amount of bonus issue per each group of shares with a nominal value of TL 1, is shown below:

Type of Share	Amount of shares to be given
“A” type shares	28.12635% Bonus “C” Shares
“B” type shares	14.06318% Bonus “C” Shares
“C” type shares	11.71931% Bonus “C” Shares

Regarding the aforementioned explanations, the base prices of the stocks of Turkiye Is Bankasi A.S. for the “A”, “B” and “C” type shares with a nominal value of TL 1 as of 11.06.2009 at the First Session are shown below:

“A”: TL 19,428.80
“B”: TL 787.05
“C”: TL 4.26

The base prices are calculated as follows:

C Type:
Weighted Average Price = C + 0.1171931 C
4.76 = C x (1 + 0.1171931)
C= TL 4.26
B Type:
Weighted Average Price = B + 0.1406318 C
787.65 = B + (0.1406318 x 4.26)
B= TL 787.05
A Type:
Weighted Average Price = A + 0.2812635 C
19,430.00 = A + (0.2812635 x 4.26)
A= TL 19,428.80

Shares issued to increase the TL 2,756,585,000 amount of paid in capital to TL 3,079,638,671 within Isbank's registered capital ceiling of TL 7,000,000,000, were registered by Capital Markets Board of Turkey with date and number 08.06.2009 40/414. TL 323,053,671 increase was covered by dividends pertaining to year 2008 earnings. However, the registration does not mean that our corporation or its shares are guaranteed by the Capital Markets Board or by the state.

Of the type C bonus shares representing the increased amount of TL 323,053,671, shareholders that own type A shares have the right to obtain 28.12635%, shareholders that own type B shares have the right to obtain 14.06318%, and shareholders that own type C shares have the right to obtain 11.71931% of their respective shares.

The issued shares will be eligible to receive dividends as of 2009 financial year, and dividends will be distributed to these shares from the 2009 net income, in case of profit generation.

Bonus share receivables related to the current dematerialized shares will be recorded to our shareholders' accounts by the Central Registry Agency starting from 11.06.2009.

As per the temporary Article 6 of the Capital Markets Law, the Central Registry Agency will keep record of the economic and management rights of the shares that are not dematerialized. In the event of dematerialization, economic rights will be transferred to the account of the shareholder and management rights will be exercised by the shareholder.

On 28.05.2009, Isbank signed a dual tranche club deal in London for USD 255 million and EUR 225.25 million with a maturity of one year with an extension option of a further one year. The total cost of part of the aforementioned club deal, which was raised by a syndicate of 28 banks from 14 countries and which will be used for trade financing, for the banks which participated with the highest amounts, was realized at Libor +2.5% and Euribor +2.5%, respectively.

On May 22nd, 2009, Isbank authorized the consortium of international banks to secure a syndicated loan of two tranches, in USD and in EUR, with a term of one year.

The Banking Regulation and Supervision Agency (BRSA) granted Isbank the necessary permission to open a representative office in Cairo, Arab Republic of Egypt and a Branch in Baku, Republic of Azerbaijan.

The following disclosure is made due to the news that took place in some media claiming that Isbank’s Deputy Chief Exceutive, Mr. Sırrı Erkan, left his duty by resignition. It is not the case that Isbank Deputy Chief Executive Mr. Sırrı Erkan resigned from his duty as claimed by some media, but that he has given his petition for retirement as of May 29th, 2009 to the Board of Isbank.

The sale of 3 real estates is completed for a total amount of TRY 8,000,000. As per the resolution of the Board of Directors dated 14.05.2009, the Head Office is authorized to keep TRY 4,517,585 of the total profit amounting to TRY 6,023,449.69 gained from the aforementioned sale, under liabilities account and to use it, if necessary, in capital increase.

On 13.04.2009 Isbank signed a framework agreement with European Investment Bank (EIB) to secure EUR 250 million loan with a term of maximum twelve years. The aforementioned loan will be used for SME financing.

The sale of a real estate is completed for a total amount of TRY 1,200,000. As per the resolution of the Board of Directors dated 13.04.2009, the Head Office is authorized to keep TRY 412,125 of the total profit amounting to TRY 549,501.17 gained from the aforementioned sale, under liabilities account and to use it, if necessary, in capital increase.

Subject: Change of Duty as per the Communiqué of the Capital Markets Board on “Principles To Be Followed By Incorporations, Which Are Subject To The Capital Markets Law ( Serial: IV, No:41)”.

As per the resolution of the Board of Directors dated 26.03.2009, nr. 35340, Mr. Suleyman H. Ozcan has been appointed as Head of Investorrelations Division and has taken office as of 01.04.2009.

Contact information of Mr. Suleyman H. Ozcan is as follows:

Name, Surname : Suleyman H. Ozcan

Telephone : 0212 316 16 00 - 01

Facsimile : 0212 316 08 39

E-mail : suleyman.ozcan@isbank.com.tr

Address : Is Kuleleri, Kule 1 Kat: 15, 34330 Levent/Istanbul

At Isbank’s General Meeting held on March 31st, 2009, in Istanbul, the following issues have been resolved.

RESOLUTIONS MADE AT ISBANK’S GENERAL MEETING HELD ON MARCH 31st, 2009, IN ISTANBUL

1. It was decided to authorize the Chairmanship Council to sign Minutes of the General Meeting.

2. The Board of Directors’, Auditors’ and Independent Auditors’ Reports have been read and discussed.

3. The Balance Sheet and the Profit and Loss Account for the year 2008 have been ratified. .

4. The Board of Directors has been acquitted with regards to transactions and accounts in the year 2008.

5. The Auditors have been acquitted with regards to transactions and accounts in the year 2008.

6. Resolution was made to pay Isbank shareholders a total amount of TL 165,399,895.67 cash dividend starting from April 1st, 2009 and to distribute Group C bonus shares through the addition of TL 323,053,671.00 of the profit to the Capital, after the shares are registered by the Capital Markets Board.

7. Election of Mr. Hasan Kochan on November 3rd, 2008, has been ratified as the Director replacing the vacant seat after the resignation of Mr. Salih Kurtulus on August 25th, 2008.

8. TL 7,000 of monthly payment was designated to the Board members.

9. Prof. Dr. Turkay Berksoy and Ayse Taciser Bayer were elected as auditors for the year 2009.

10. The monthly remuneration of the auditors was determined as TL 3,650.

11. The shareholders were informed on the endowments made during the year 2009.

The cash dividend to be distributed to each of the Group A, B and C shares with a nominal value of TL1 is net TL 0.051, and net TL 1.65839 for each of the founders’ shares can be found in the Profit Distribution Table.

Please click to view the Profit Distribution Table ve Minutes of the AGM (in Turkish).

Subject: Appointment as per the Communiqué of the Capital Markets Board on “Principles To Be Followed By Incorporations, Which Are Subject To The Capital Markets Law ( Serial: IV, No:41)”.

As per the resolution of the Board of Directors dated 26.11.2008, it is decided that the Investor Relations Unit, which has been operating under the Financial Management Division since 1998 to help shareholders to excercise their rights, and providing communication between the Board and the shareholders, shall operate as a separate division. Contact information of the aforementioned division’s manager is as follows:

Name, Surname : Aziz Ferit Eraslan

Telephone : 0212 316 30 00

Facsimile : 0212 316 09 30

E-mail : ferit.eraslan@isbank.com.tr

Address : İş Kuleleri, Kule 1 Kat: 15, 34330 Levent/İstanbul

Alper Turgal, one of the Investor Relations Division’s managers, whose contact information is given below, is entrusted with fulfilling of company’s obligations arising from Capital Markets Law and providing coordination in corporate governance applications.

Name, Surname : Alper Turgal

Telephone : 0212 316 30 36

Facsimile : 0212 316 09 50

E-mail : alper.turgal@isbank.com.tr

Address : İş Kuleleri, Kule 1 Kat: 15, 34330 Levent/İstanbul

Following resolutions were made at the Board meeting of Turkiye Is Bankasi A.S. on 11.03.2009:

• It is decided to propose to the General Assembly, which will be held on 31st March 2009, to distribute profits for the year 2008 as shown in the attachment and within this frame, to propose that TL 165,395,100 of the profit to be paid to the shareholders in cash, and TL 323,053,671 of the profit to be added to the capital and thus to be paid to the shareholders as bonus Group C shares as shown below,

• It is decided to propose to the General Assembly to start cash dividend payment on 01.04.2009 and to distribute bonus shares following their registration by the Capital Markets Board.

On the other hand, the decision is made to increase the TL 2,756,585,000 paid-in capital within the registered capital of TL 7 billion, up to TL 3,079,638,671 by way of distributing TL 323,053,671 to the Group C shareholders as bonus shares depending on the resolution of the General Assembly, and it is decided that the Head Office is authorized to apply to the Capital Markets Board and other related authorities for the capital increase and to carry out the capital increase processes.

It is also noted in the dividend payment attachment and in the ISE website “Companies” pages that the cash dividend to be distributed to each of the Group A, B and C shares with a nominal value of TL1 is TL 0.051, and it is TL 1.65839 for each of the founders’ shares.

Please click for the Dividend Payment and Profit

As per the resolution of the Board of Directors dated 11.03.2009, it is decided that the Annual General Meeting of Turkiye Is Bankasi A.S. will be held on Tuesday, 31st March 2009, at 14:00 p.m. at Is Kuleleri, 34330 – Levent / Istanbul, during which the following agenda topics will be discussed.

1. Opening Ceremony, establishment of Chairmanship Council and authorization of the Chairmanship Council to sign Minutes of the General Meeting,
2. Presentation of and discussion on the Management’s, Auditors’ and Independent Auditors’ Reports,
3. Examination and ratification of 2008 Balance Sheet and Income Statement,
4. Discharge of the Board of Directors from their responsibilities for the transactions and accounts of the year 2008,
5. Discharge of the Auditors from their responsibilities for the transactions and accounts of the year 2008,
6. Determination of the dividend distribution and the method and date of allotment of dividends,
7. Ratification of the Board election made for the vacant seat during the year,
8. Determination of the allowance for the members of the Board of Directors,
9. Election of the Auditors for 2009,
10. Determination of the Auditors’ salaries,
11. Informing the shareholders on the endowments made during the year.

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The initiatives of Isbank to open a representative office in Egypt and a branch in Baku (Azerbaijan) as well as to engage in cross-border banking activities in Russia, Ukraine and Kazakhstan through  a consultancy firm is still in progress.