Doszhan Temir Zholy (DTZh) (Kazakhstan) provides KASE with explanations on default on bonds KZ2CKY23B672 (DTJLb1)

/KASE, September 26, 08/ - Doszhan Temir Zholy (Almaty), bonds of which are traded in the official list of Kazakhstan Stock Exchange (KASE) of category "A", informed Kazakhstan Stock Exchange in an official letter on the actions of the issuer done to pay coupon interest on bonds KZ2CKY23B672 (KASE official list of category "A", DTJLb1; KZT1,000, KZT30.0 bn.; 02.08.05 - 02.08.28, semiannual coupon indexed to inflation rate, 19.95 % APR as for the reporting period, 30/360) for the period August 2, 2007 through August 2, 2008: Quotation start We inform that within the frameworks of the Concession agreement on construction and operation of a new railway "Shar - Ust-Kamenogorsk" of 06.07.2005, the Government of the Republic of Kazakhstan issued Resolution No. 875 of 25.08.2005 (PPRK No. 875) on provision of guarantee in the sum, correspondent with the cost of the Object transferred to the State and not exceeding KZT21,427 m. and interest, accrued on the outstanding bonds for the period of circulation of the infrastructure bonds, issued in the period of construction of the object of the Concession. The same resolution has approved the Agreement on guarantee (the Agreement), concluded between the Ministry of Finance of RK (Guarantor) and ATFBank (the Representative of bondholders), on which the Guarantor is subsidiary responsible for execution by Doszhan Temir Zholy (the Issuer) of obligations on infrastructure bonds. In accordance with the Agreement, in case of default on bonds of the Issuer the claims to the Guarantor may be made in any time before the date, coming in 60 (sixty) calendar days (according to the changes in the Budget code of RK of 6.08.2008 in 180 days) after maturity at the address of location of the Guarantor. At the same time, the Representative of the bondholders, before the claims are made to the Guarantor must take reasonable measures for satisfaction of requirements by the Issuer. The reasonable measures, in this case, will mean a set of actions of the Representative of bondholders on demand of all funds available at the Issuer, and in case of deficit of funds, address of claim on the property of the Issuer. Taking into consideration the abovementioned and that construction of the railway is at a final stage (launch is planned for the end of September this year) Doszhan Temir Zholy was and is working on provision of proper execution of obligations on payment of the interest rate for the period 2007 - 2008. In particular, DTZ organized a number of meetings at the level of Association of Financiers of Kazakhstan (AFK) with ATFBank" and large bondholders accumulative pension funds. By the results of the meetings a consolidated letter on behalf of AFK has been sent to the Prime-Minister of RK K. Masimov suggesting optimal solutions for the situation. At the beginning of September a joint meeting of profile ministers has taken place resulting in the decision to support the project and develop an opportunity to increase assets of DTZ by sale of its actions to Samruk and/or Fund of Sustainable Development Kazyna. Currently an option of purchase by Kazakhstan Temir Zholy Investment Fund of Kazakhstan of available unplaced and additionally issued of shares of DTZ is being considered. The issue is supposed to be solved before the end of the first decade of October this year. Quotation end [2008-09-26]