Transfer of Shares

9 August 2012

Transfer of Shares in JSC Georgian Railway to JSC Partnership Fund

JSC Georgian Railway (the "Company") today announces that the State of Georgia has transferred all of its remaining shares in the Company (comprising the 74.5 per cent. of the Company's share capital that was directly held by the State and controlled by the Enterprise Management Agency, an agency of the Ministry of Economy and Sustainable Development of Georgia) to JSC Partnership Fund. Following registration of the transfer, the Partnership Fund will hold 100 per cent of the Company's share capital.

The Partnership Fund was established in June 2011 by the Law of Georgia on JSC Partnership Fund for the purposes of promoting investment activity and economic development and creating job opportunities in Georgia. The Partnership Fund is wholly-owned by the State of Georgia. Nika Gilauri, the previous Prime Minister of Georgia, is the Chairman of the Supervisory Board of the Partnership Fund.