İş Yatırım Menkul Değerler A.Ş.

Ocak 2005

PERFORMANCE & FINANCIAL RESULTS

2008/Q2

August, 2008

2

ABOUT US

OVERVIEW OF CAPITAL MARKETS

OUR PERFORMANCE

FINANCIAL RESULTS

A NEW PRODUCT - EXPECTATIONS FOR HE REST OF THE YEAR

3

IS Investment offers variety of domestic and international services, such as;

Brokerage

Investment Advisory

Asset Management

Corporate Finance

Research

THE ONLY LISTED INVESTMENT BANKING INSTITUTION - ISE

The leading investment banking institution in Turkey and the investment arm of IS Bank

FITCH: “AAA(tur)”

4

ONCE AGAIN…BEST EQUITY HOUSE IN TURKEY

IS Investment - once again - rewarded as the “Best Equity House in Turkey”

5

ABOUT US

OVERVIEW OF TURKISH CAPITAL MARKETS

OUR PERFORMANCE

FINANCIAL RESULTS

A NEW PRODUCT - EXPECTATIONS FOR THE REST OF THE YEAR

6

PERFORMANCE OF TURKISH CAPITAL MARKETS

Equity Market (YTL Billion)

2007/Q2 2008/Q2

Derivative Market (YTL Billion)

2007/Q2 2008/Q2

Despite the fluctuation in international markets , equity market increased its trading volume

2007/Q2 2008/Q2

Bills & Bonds Market (YTL Billion)

3,5%

Derivative Market - Valued on expectations

Eurobonds (YTL Billion)

2008/Q2

The trading volume of Turkish Eurobonds increased 66,5% in 2008/Q2 B&B Market displayed almost the same performance

2008/Q1

352.4

344.5

401332.2

218

70.2

16.4

27.3

7

ASSET MANAGEMENT

21.4

144.1

913

3.677

25.010

29.268

Asset Management (USD Million)

Portfolio size of pension funds continue to confirm our claims to be the locomotive of fund business in near future, reaching USD 4.744 mn. despite the weaker performance of the markets

2006 2007

Source: www.tspakb.org.tr

2008/08

Pension Funds; expected to be the locomotive of the market

2.048

20.271

29.57428.002

3.8184.744

Pension Funds

Total

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ABOUT US

OVERVIEW OF CAPITAL MARKETS

OUR PERFORMANCE

FINANCIAL RESULTS

A NEW PRODUCT - EXPECTATIONS FOR THE REST OF THE YEAR

9

LEADER IN THE MARKETS

Equity Markets - (YTL Billion)

Despite the low performance of the market, we maintain our market leadership

Derivative Markets - (YTL Billion)

Uncontested leadership in the market

Eurobond Market – (YTL Billion)

2008/Q1 2008/Q2

Our trading volume growth in 2008/Q2 confirms our clear market leadership among the brokerage houses

Bills&Bonds Market - (YTL Billion)

2007/Q2 2008/Q2

We rank the first among the brokerage houses

2007/Q2 2008/Q2

21.9 21.7

6,15%6,37%

2007/Q2 2008/Q2

12

33

15,16%

17,10%

10.7

8.1

17,38%

12,80%

1.6

2.59,90%

9,34%

10

ASSET UNDER MANAGEMENT

AuM & Pension Funds Portfolio Size - IS Asset Management (YTL Million)

Asset Management - the ascending business of the markets

AuM & Pension Funds portfolio size represent

20,7% and 18,7% of the funds market

respectively

173

7.043

6.003

410

516

5.247

682

6.484

777

6.6207.043

173

2005 2006 2007

Source: IS Investment

2008/Q2

Pension Funds

Total

6.851

5.247

6.820

7.000

967860516174

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INTERNATIONAL CAPITAL MARKETS

Fixed Income & Equity - (USD Million)

2007/Q2 2008/Q2

Fixed income & equity trading volume reached USD 8.3 bn from USD 6.2 bn surging 33% with respect to the same period of 2007, while performing 172.679 derivative contracts which mainly comes from our e-trading platform; TradeMaster

Source: IS Investment

Derivative - (# of Contracts)

2007/Q2 2008/Q2

Equity

Fixed Income 30.336

172.679

469%

Source: Is Investment

7.532

6.108

774

139 33%

12

CORPORATE FINANCE

1.911

708

M&As Size (USD Million)

341

34.9

2008 - continue to be the year of M&A rather than public offerings

2007/Q2 2008/Q2

38.9

Source: IS Investment

90.4

2.097

A remarkable performance

13

ABOUT US

OVERVIEW OF CAPITAL MARKETS

OUR PERFORMANCE

FINANCIAL RESULTS

A NEW PRODUCT - EXPECTATIONS FOR THE REST OF THE YEAR

14

MAIN FINANCIAL FIGURES

IS Investment

YTL (000)2007/Q2 2008/Q2 YoY ▲%

Total Assets 1.013.102 1.288.686 27

Shareholders’ Equity 221.083 241.923 9

Total assets coincide with one third of the whole sector

Net Profit

Net Profit(Declared to the tax authority)

Consolidated Net Profit

18.3349.876 86

12.58912.308 2

2008/Q1

1.494.691

241.838

7.546

2.105

QoQ ▲%

-15

0

143

498

* IS Private Equity is started to be consolidated to our financials with its book value as of 2008Q2 in respect of the change in our accounting policy.

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CONSOLIDATION EFFECT

IS Investment profit is in line with expectations and subsidiaries are expected to perform a better consolidation in 2008/Q3

IS Investment Only

(Declared to the Tax Authority)

7.546

Consolidation Effect*

Subsidiaries

Dividend Elimination**

-1.724

-3.717

Consolidated Net Profit 2.105

2008Q2 (YTL 000)

* IS Private Equity is started to be consolidated to our financials with its book value as of 2008Q2 in respect of the change in our accounting policy.

** Dividend elimination on operations with IS Investment Trust.

IS Investment Only

(Declared to the Tax Authority)

18.334

Consolidation Effect*

Subsidiaries

Dividend Elimination**

- 846

-4.899

Consolidated Net Profit 12.589

2008Q1 (YTL 000)

16

ISE-100

IS Investment Trust

IS Private Equity

Performance of ISE-100 Index (2008/Q2)

ISE PERFORMANCE OF OUR SUBSIDIARIES

The smoothed price performance of our subsidiaries expected be better in 2008/Q3

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P/E and P/BV – IS INVESTMENT

P/E

P/BV

2008Q1 2008Q2

1,33 0,77

8,45 5,23

2007

0,73

4,56

ISMEN Performance

4,204,404,604,805,005,205,40

01.03.2008 01.04.2008 01.05.2008 01.06.2008

P/E PD/DD

0,70

0,72

0,74

0,76

0,78P/E P/BV

18

ABOUT US

OVERVIEW OF CAPITAL MARKETS

OUR PERFORMANCE

A NEW PRODUCT - EXPECTATIONS FOR THE REST OF THE YEAR

FINANCIAL RESULTS

19

A NEW PRODUCT: IBOXX TURKEY BENCHMARK BOND ETF

Aims to offer exposure to the six longest zero-coupon Domestic Government Debt Securities (DGDS)

The Fund provides investors with the opportunity of trading during the stock market hours, high liquidity and transparency.

Longer term issues are set to be dominant in the index and increase the fund’s convexity.

The fund portfolio is adjusted with the arrival of new issues, so investors possess continuously the longest six zero-coupon DGDS.

Fund shares can be subject to borrowing and lending transactions. Lending fund shares will earn investors additional income.

IS Investment’s second ETF offered to public and started to be traded on the ISE after ISDJE

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EXPECTATIONS FOR THE REST OF THE YEAR

Consolidation effect of subsidiaries turned to be positive. IS Private Equity is started to be consolidated to our financials with its book value.

Single stock futures are on the way, waiting for CMB’s approval.

Our Hedge Fund is registered to CMB and expected to be launched in Autumn with an effective risk managenent system.

Public offerings are still on the pipeline, depending on the market conditions. Trading foreign securities continue to boom. ISMEN shares owned by foreign investors reached to 57,21% as of 2008Q2, while it was 48% in the same period of 2007.

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INVESTOR RELATIONSINVESTOR RELATIONS

Mr. Mert Erdoğmuş

Assistant General Manager

Phone : +90 0212 350 24 12

Fax : +90 0212 350 20 01

E-mail : merdogmus@isyatirim.com.tr

Mr. Ozan Altan

Senior Associate

Phone : +90 0212 350 28 72

Fax : +90 0212 350 20 01

E-mail : oaltan@isyatirim.com.tr

The Investor Relations Department is responsible for the timely communication of necessary, accurate, complete, comprehensible and easily accessible information and explanations, which are not considered to be trade secrets to its shareholders and stakeholders

http://www.isinvestment.com/wwa_ir.aspx

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The information in this report is prepared by “IS YATIRIM MENKUL DEGERLER A.S.” (İş Investment) and it is not to be construed as an offer or solicitation for the purchase or sale of any financial instrument or the provision of an offer to provide investment services. Information, opinions and comments contained in this material are not under the scope of investment advisory services. Investment advisory services are given according to the investment advisory contract, signed between the intermediary institutions, portfolio management companies, investment banks and the clients. Opinions and comments contained in this report reflect the personal views of the analysts who supplied them. The investments discussed or recommended in this report may involve significant risk, may be illiquid and may not be suitable for all investors. Therefore, making decisions with respect to the information in this report cause inappropriate results.

All prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this report is strictly prohibited. The information presented in this report has been obtained from sources believed to be reliable. Is Investment cannot be held responsible for any errors or omissions or for results obtained from the use of such information.

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IS INVESTMENT

isyatirim.com.trisinvestment.com

HEAD İş Kuleleri Kule-2 Kat:12 YENİKÖY Köybaşı Caddesi İskele Çıkmazı No:277 OFFICE 4. Levent 34330 İstanbul Turkey BRANCH 34464 Yeniköy İstanbul Turkey

Tel: (+90212) 350 20 00 Tel: (+90212) 363 01 00 Fax: (+90212) 325 12 26 – 325 12 48 Fax: (+90212) 363 01 01

AKARETLER Süleyman Seba Cd. No:44 B1 Blok D:10 YEŞİLKÖY Havalimanı Kavşağı EGS Business Park BRANCH 34357 Akaretler İstanbul Turkey BRANCH B3 Blok No:470 34149 Yeşilköy İstanbul Turkey

Tel: (+90212) 326 87 00 Tel: (+90212) 463 20 00Fax: (+90212) 326 87 01 Fax: (+90212) 463 20 01

ANKARA Tahran Cd. No:3/8 LEVENT Yapı Kredi Plaza C Blok K: 9 Bölüm 25/B BRANCH 06700 Kavaklıdere Ankara Turkey REP. OFFICE 4. Levent 34330 İstanbul Turkey

Tel: (+90312) 455 26 50 Tel: (+90212) 282 00 18 Fax: (+90312) 466 26 62 Fax: (+90212) 282 00 19

İZMİR Akdeniz Cd. No:14 Birsel İş Merkezi D:501 ALMA ATA Jeltozbekova Street 97 Block A2 Floor:2BRANCH Alsancak 35210 İzmir Turkey REP. OFFICE Almaata 050051 Kazakhstan

Tel: (+90232) 488 90 00 Tel: (+77012) 234803Fax: (+90232) 488 90 01 Fax: (+77273) 340509

KALAMIŞ Fenerbahçe, Fener Kalamış Cd. SUBSIDIARY MAXIS SECURITIES LTD BRANCH Tibaş-Belvü Sitesi A2 Blok D:3 8 Princes Street

Kadıköy 34726 İstanbul Turkey London EC2R 8HL UK Tel: (+90216) 542 72 00 Tel: (+44207) 397 1431 Fax: (+90216) 542 72 01 Fax: (+44207) 726 2566

İş Yatırım Menkul Değerler A.Ş.

Ocak 2005

Performance & Financial Results

2008-Q1

June 2008