Orient Express Bank Update

2008.07.03

Dear Investors,

Orient Express Bank has not received an approval from its Board of Directors for a merger with URSA Bank. Thus, a Put Event will occur on our ruble-denominated Eurobonds that were issued last year. In due time, a Put Event Notice will be sent to our bond holders giving them the option to redeem their bonds at their principal amount plus interest.

Orient Express Bank and URSA Bank still favor a merger in principal. However, the Board of Directors feel that the timing of such merger should not be rushed and that the structure of such merger should be further developed.

We thank you for your support and your trust. Please feel free to contact us at any time if you have any questions or concerns.

Best regards,

Investor Relations

Orient Express Bank