ISE 2nd Quarter Report

As of end June 2006, the ISE-National 100 Index reached to a level of 1,315 on US$ basis with an increase of 11.7 percent compared to the value at the end of end June 2005. The total turnover value on the ISE Stock Market for the first half of 2006 increased to US$ 137.9 billion from US$ 90.3 billion for the same period in 2005. The market capitalization increased to a level of US$ 128.3 billion in June 2006 from US$ 106.1 billion in June 2005. As of June 2006, foreign equity investments reached to US$ 26.4 billion representing 65% of free float of the market capitalization.

During the second quarter of 2006, eight companies Vestel Beyaz Esya San. ve Tic. A.S. (a manufacturing company), Selcuk Ecza Deposu Ticaret ve Sanayi A.S. (a wholesale trade company), Asya Katilim Bankas1 A.S. (a bank), Coca Cola Icecek A.S. (a beverage company), Baskent Menkul Kiymetler Yatirim Ortakligi (an investment trust company), Metro Menkul Kiymetler Yatirim Ortakligi (an investment trust company), Taksim Yatirim Ortakligi A.S. (an investment trust company) and Euro Menkul K1ymetler Yatirim Ortakligi A.S. (an investment trust company) offered their stocks for the first time to public and started to be traded on the ISE National Market. Additionally, 2 companies, namely; Silverline Endustri ve Ticaret A.S. (a consumer trade company) and Armada Bilgisayar Sistemleri Sanayi ve Ticaret A.S. (an information technology company) offered their stocks for the first time to public and started to be traded on the ISE Second National Market and the ISE New Economy Market, respectively. The amount of funds reached by the ten companies offering their stocks for the first time to public reached a level of US$ 855.4 million.

The total turnover in public securities, transacted on the Outright Purchases and Sales Market for the first half of 2006 decreased to US$ 154.8 billion from US$ 201.1 billion for the same period in 2005. The Repo/Reverse Repo Market total turnover increased to a level of US$ 885.2 billion as of June 2006 from US$ 366.9 billion in the same period in 2005.

As part of its international efforts, Istanbul Stock Exchange hosted the 2nd round Working Committee Meeting of the World Federation of Exchanges (WFE) on Jun 29-30, 2006.

ECONOMIC NEWS

According to the Turkish Statistical Institute (TURKSTAT) the GDP and GNP grew by 6.4% and 6.3%, respectively in the first quarter of 2006. A significant growth in the construction sector due to ongoing demand for housing was the main factor attributable to the relevant growth rate.

The year-on-year consumer price index increased to 10.12 percent as of end June 2006, from 8.95 percent as of end June 2005. The year-on-year producer price index increased to 12.52 percent as of end June 2006, from 4.25 percent as of end June 2005.

In May 2006, the exports increased by 14.4 percent to US$ 6.8 billion and imports increased by 24.4 percent to US$ 12,2 billion when compared to the same month of the previous year. Accordingly, the monthly foreign trade deficit stood at a level of US$ 5.4 billion and the exports/imports ratio was realized at 56 percent in May 2006.

The Central Banks effective buying rates for US$ and Euro stood at YTL 1.6018 and YTL 2.0081 respectively at the end of June 2006.