Memo KAMAZ Inc.

• KAMAZ Open Joint Stock Company was established in 1990 as transformation of industrial association KAMAZ that had been founded in 1969. KAMAZ Inc. is the largest Russian vehicle manufacturer, which insures transport safety of the country;
• KAMAZ Inc. is a large vehicle building company. The united production complex of KAMAZ Inc. consists of 13 large special-purpose plants developing, producing, assembling vehicles and components and also marketing end products. The KAMAZ Group of companies consists of 110 enterprises including NefAZ OJSC (Neftekamsk city) and Avtopritsep-KAMAZ OJSC (Stavropol city). Share of KAMAZ Inc. is 51% in each of these two companies.
• The first truck was assembled in February 1976. Since then KAMAZ Inc. has been playing a significant role in the world automobile industry. It is among the top ten manufacturers of heavy-duty vehicles and is the eighth in the world on production volumes of diesel engines. Thus, within 29 years there has been assembled over 1,7 million heavy-duty trucks and 2,3 million engines. KAMAZ Inc. manufactures a wide range of heavy-duty dump trucks (more than 30 models and about 400 modifications trucks with a right-side steering wheel), buses, trailers, castings, forgings, tools and many others.
• Having overcome all difficulties of post reconstruction period of Russian economy, KAMAZ Inc. is in progress. Within the last 3 years production and sales volume has been growing by 20% annually. Every fourth KAMAZ truck is exported. According to 2004 results net profit of KAMAZ Group of companies made 208 million rubles. The share of KAMAZ Inc. on the Russian market is 37,3%. In 2003 the Company made 1 billion USD profit and in 2004 it constituted over 1 billion Euros.
• The Company today is operating the most advanced and sophisticated equipment and technologies, rendering high level technical services and high adaptation to the current market. They are successfully operating in more than 60 countries of the world. Besides, KAMAZ Inc. cooperates with over 130 special vehicle manufacturers of Russia.
• KAMAZ Inc. provides for technical services of its vehicles at any region in Russia and overseas through its wide service net consisting of over 350 entities. The system of technical service is based on the principles of a unified style, establishing the same style service stations, “best effort” service approach to a customer, and is aimed to eliminate downtime of a vehicle.
• The Company outputs annually:
  Trucks - 65, 000 units
  Power units – 75, 000 pcs.
  Buses – 1, 000 units
• KAMAZ Inc. is currently cooperating with over 130 Russian companies;
• KAMAZ Inc. has its assembling lines in 6 countries outside of Russia: Poland, Kazakhstan, Azerbaijan, Ukraine, Ethiopia and Vietnam;
• Since 1976 KAMAZ Inc. has exported over 130 000 trucks in 97 countries;
• It is the 7 time winner of “The Best Exporting Company of the Russian Federation” contest;
• KAMAZ Inc. in cooperation with RosOboronExport Federal State Unitary Enterprise delivered over 2 000 military trucks to Egypt, Saudi Arabia, UAE, Ethiopia, Ecuador;
• KAMAZ military trucks were presented with one of the most prestigious awards “For the Most Perfect Vehicle Presented at the Show” at the International military vehicle show IDEX-2003 in OAE.
• In 2004 the Company entered new markets: Hungary, Slovakia, Serbia, Quatar, Iran, Lebanon, India, Bahrain, Pakistan, Bangladesh;
• KAMAZ Inc.’s product quality is ensured by a quality system that is complying with ISO 9001-2000 International Standard. The “Russian Register” certification body has certified quality System of the Company;
• KAMAZ Inc. is in 10 top of world largest truck manufacturers;
• Its production volume of diesel engines for trucks ranks the 8th in the world;
• KAMAZ Inc. is among 10 largest world truck manufacturers;
• Every 2nd truck of 14-40t GVW, assembled in CIS, is KAMAZ truck (50,5%);
• Total number of KAMAZ Inc.’ authorized distributors is 186, including:
  In Russia - 101
  In CIS - 52
  Outside of Russia - 34
• KAMAZ is the owner of 121 Service centers in Russia;
• KAMAZ is the major vehicle supplier for the Ministry of Defense of the Russian Federation, RAO GAZPROM, LUKOIL, SUEK, TNK.

Cooperation with UN

• First KAMAZ trucks for UN were delivered in 1993. These were 30 units for Yugoslavia, where Russian vehicles proved themselves to be more reliable than famous western manufactured ones;
• KAMAZ trucks ordered by UN were delivered to Israel, Jordan, Lebanon and Cyprus;
• The largest order (over 4,000 trucks) took place within 1999 - 2003. Then KAMAZ trucks were delivered to Iraq under “Oil in Exchange for Food” UN program;
• Since 2002 more than 500 of KAMAZ trucks has been delivered to Afghanistan through various UN organizations: “Doctors Without Borders”, “International Organisation for Migration”, “World Food Programme”, UNDP, UNOPS, IAPSO;
• KAMAZ Inc. became an official supplier of UN in December 2002 (reg.№20081).

KAMAZ Inc. Today:

• Easy in maintenance, reliable, good quality trucks with low operation cost and at most competitive price;
• Meets any demand of a customer;
• Wide marketing geography - KAMAZ vehicles operate under any climate and road conditions: on the Northern Pole and in tropics, in deserts and highlands;
• Wide and well established service network in Russia and CIS, warranty period – up to 500 000 km.

Direct Leasing From Manufacturer

• As per rating of Russian “Expert” magazine in 2004 Leasing Department of KAMAZ Inc. occupied the 8th position on volume of contracts signed, 15th position on volume of funds received having moved within a year from 52th position, and occupied the 3d position among the companies that offer trucks on leasing (having given the first two places to “Volvo” and “Scania”);
• Since the start of its activities Leasing Department of KAMAZ Inc. marketed 3 841 vehicle units to the amount of 4,3 billion rubles. In 2004 there were marketed on leasing 2 061 units what is by 2,65 times higher vs. 2003.
• Business plan is overfulfilled by 6,7%;
• The Company earned from introduction of leasing program 2,2 billion rubles. Over 200 million rubles is net profit of KAMAZ Inc. due to leasing as a financial instrument;
• In 2004 Leasing Department’s growth rate of marketed products volume was 250% vs. 2003.

All the above facilitates KAMAZ Inc. to improve its production along with the latest achievements of the world automobile industry.

Already for seven years pilots of KAMAZ-Master sport team are the most evident example of technical and sport leadership. More than once KAMAZ Inc. was a winner of international rallies and super marathons, such as “Dakar-Cairo”, “Paris-Moscow-Beijing”, “Paris-Dakar”.