INVESTMENT Investment is the investment arm of Bank and the leading investment banking institution in Turkey. Investment stands out as the only listed brokerage house in the country offering variety of services, such as;Brokerage (Trading securities including domestic and international equities, fixed income and derivatives) Investment AdvisoryAsset ManagementCorporate Finance (Public offerings, M&As and strategic consultancy)Research

Best Equity House in Turkey. Investment rewarded as the Best Equity House in Turkey within the frame of Euromoney 2007 Awards for Excellence

Overview of Turkish Capital Markets - 12006/1H 2007/1H2006/1H2007/1H 380,5 bn 344,5 bnEQUITY MARKET (TRY)TURKISH DERIVATIVE EXCHANGE (TRY)

70,2 bn

12,2 bn Falling short of expectations, equity market remained relatively weaker in 2007/1H compared to its performance attained in the first half of 2006. The evolving derivative market also cannibalized some part of trading volume from the equity market.

In the process, the derivative market displayed an outstanding performance, beating almost all estimates with 475% annual surge in 2007/IH. The actual trading volumes reached in this market in the first half of 2007 has surpassed our year-end target.

Chart1

380.5

344.5

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2006/1H380.5

2007/1H344.5

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0

0

ISTANBUL STOCK EXCHANGE - EQUITY

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12.2

70.2

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0

0

TURKISH DERIVATIVES EXCHANGE

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94.90

62.60

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0

0

BONDS & BILLS MARKET

Chart2

12.2

70.2

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2006/1H380.5

2007/1H344.5

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0

0

ISTANBUL STOCK EXCHANGE - EQUITY

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12.2

70.2

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0

0

TURKISH DERIVATIVES EXCHANGE

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94.90

62.60

Sheet3

0

0

BONDS & BILLS MARKET

Overview of Turkish Capital Markets - 2 Pension funds will become the main driving force of the fund management business. The portfolio size of pension funds reached USD 2.900 mn as of IH/07 from USD 2.048 mn at the end of 2006 in the market, growing 41% with respect to 2006. Note that the AUM from the pension fund business was merely US$38 mn back in 2003.

2005

2006

08/10/2007

PENSION FUNDS PORTFOLIO SIZE (USD)913 mn

2.048 mn

2.900 mn

BILLS & BONDS MARKET (TRY)

2006/1H

2007/1H

420 bn401 bn High volatility and uncertainties in the markets lead to a visible drop in the trading volume in the Bills and Bonds Market

Chart1

913

2048

2900

Sheet1

117,743,848.39153,641,090.01

FON ADI30.06.2006 TARHL FON PORTFY DEER30.06.2007 TARHL FON PORTFY DEER

Yatrm A Tipi Deiken6,335,783.6214,114,030.81

Yatrm B Tipi Deiken56,983,726.2621,408,243.41

Yatrm B Tipi Tahvil ve Bono11,523,719.4056,395,021.82

Yatrm B Tipi Sta Deiken zel Fon42,900,619.1257,909,983.02

Yatrm Dow Jones Trkiye Eit Arlkl 15 A Tipi Borsa Yatrm Fonu3,813,810.96

117,743,848.39153,641,090.01

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0

0

INVESTMENT'S FUNDS

Sheet2

12/29/06EMEKLLK FONLARI

12/29/06

9

7/1/02

Yatrm Fonlarnn bykl 1999 ylnda 2.2 milyar USD seviyesinden 2006 yl sonunda 18.26 milyar USDlk bir bykle ulamtr.

2005200610/8/07

913.002,048.002,900.00

12/29/06

Yatrm Fonlar Piyasas 1999 yldan itibaren byk bir gelime kaydetmitir.

Yatrm Fonlarnn bykl 1999 ylnda 2.2 milyar USD seviyesinden 2006 yl sonunda 18.26 milyar USDlk bir bykle ulamtr.

Yatrm Fonlarnn bykl 1999 ylnda 2.2 milyar USD seviyesinden 2006 yl sonunda 18.26 milyar USDlk bir bykle ulamtr.

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PENSION FUNDS - PORTFOLIO SIZE

Sheet3

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94.9

62.6

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94.962.6

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0

0

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Market Share in Equity Market We strengthened our leadership position in the first half of 2007, increasing our market share to 6,37% from 6,27% compared to the same period of 2006 while our trading volume decreased to TRY 21.9 bn from TRY 23.8 bn parallel to the contraction in overall market.

The results we achieved in the first half is in line with our targets.2006/1H2007/1H 23,8 bn 21,9 bn6,37%6,27%EQUITY MARKET INVESTMENT (TRY)Improving and solidifying our leadership position

Chart2

0.0627

0.0637

Sheet1

6.27%1

6.37%2

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0

0

EQUITY MARKET - INVESTMENT

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Market Share in Bills & Bonds Market Our market share declined to 12,8% from 13,8% while our trading volume decreased to TRY 8,1 bn from TRY 13,1 bn thanks to the sheer contraction in overall market.

Meanwhile, we have been maintaining our leading positions among the brokerage houses in the market for more than 4 years.

2006/1H2007/1H 13,1 bn8,1 bn13,8%12,8 %BILLS & BONDS MARKET INVESTMENT (TRY)Holding one of the first two seats for more than 16 consecutivequarters.

Chart5

13.1

8.1

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6.27%1

6.37%2

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EQUITY MARKET - INVESTMENT

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8.1

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BONDS & BILLS MARKET - INVESTMENT

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Market Share in Derivative Market Our derivative trading volume surged to TRY 12 bn with over 252% rise over the same period of 2006. Our market share retreated to 17% as many players joined to the market . Still, our leadership is uncontested.

Our first half trading volume in the derivatives market is quite close to the target figure (TRY 14 bn.) we had set for the full year.

Our trading volume will continue to elevate as more new instruments will start trading in the market i Investment, as pioneer of the new products, will bolster its leadership via those products.

Our client base in derivative products is getting wider in each quarter (foreign & domestic).

2006/1H2007/1HTRY 3,6 bnTRY 12 bn29%17%DERIVATIVE MARKET INVESTMENT New derivative instruments are in the pipeline

Chart7

3.6

12

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6.27%1

6.37%2

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0

0

EQUITY MARKET - INVESTMENT

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13.1

8.1

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0

0

BONDS & BILLS MARKET - INVESTMENT

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3.612

12

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0

0

DERIVATIVE MARKET - INVESTMENT

Trading Volume in International Capital MarketsTRADING VOLUME IN INTERNATIONAL CAPITAL MARKETS2006/1H2007/1H8933.088Our trading volume in international capital markets reached USD 3 bn , surging by 246% with respect to the same period of 2006.

The share of international derivatives is getting larger portion of the overall volume.

The new instruments will likely give breadth and depth to our increasing volumes in this market.(USD Million)

Chart1

893133000

3088105000

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893,133,000.003,088,105,000.00

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0

0

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Asset Management We experienced a notable recovery in mutual fund business in IH/2007 following the major shake out in 2006, which had resulted in major redemptions from the mutual funds.

Pension funds surged by 32% on YTD basis in IH/07.

50% of Asset Management shares were purchased from Bank at the pre-determined price (TRY 30,5 mn). Now, Investment has 70% direct stake in Asset Management.

Asset Management -as 70% affiliate- will be consolidated to Investments results starting from Q3/2007. Investments IH/07 results includes merely 20% consolidation of Asset Management.

20052006/1H20062007/1HASSET UNDER MANAGEMENT - PORTFOLIO SIZE(TRY Million)PENSION FUND PORTFOLIO SIZE(TRY Million)20052006/1H20062007/1H173306516682

7.0435.7345.2476.484

Chart1

173130

305594

516000

682522

Sheet1

2,005.00

2006/1H

2,006.00

2007/1H

TOPLAM( YATIRIM FONLARI DAHL)

256,012,232.00

173,130.005,696,812.00924,173.002,005.00123,256,899.00

305,594.005,251,305.00596,427.002006/1H109,247,783.00

516,000.004,527,747.0099,175.002,006.00159,931,139.00

682,522.005,060,967.00587,650.002007/1H

249,218,117.00

117,700,000.00

104,104,861.00

153,600,000.00

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000

000

000

000

Sheet2

173,130.00

305,594.00

516,000.00

682,522.00

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0

0

0

0

Sheet3

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7043339117

6271069818

5247357881

6487780090

Sheet1

173,130,000.005,696,812,000.00924,179,000.00249,218,117.002,005.00

305,594,000.005,251,305,000.00596,427,000.00117,743,818.002006/1H

516,331,000.004,527,747,000.0099,175,000.00104,104,881.002,006.00

685,522,000.005,060,967,000.00587,650,000.00153,641,090.002007/1H

7,043,339,117.006,271,069,818.005,247,357,881.006,487,780,090.00

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ISDJE Exchange Traded Fund (ETF) Yatrm Dow Jones Turkey Equal Weighted 15 A Type Exchange Traded Fund - founded by Investment- was listed at Istanbul Stock Exchange on 25th May, 2007 with code of ISDJE.

www.isbyf.com

Corporate Finance (Public Offerings M&As)The largest privatization offering in the ISE: HALKBANK We performed the largest privatization offering in the Turkish capital markets with Halkbank.

We became the only listed brokerage house at the ISE.

We executed USD 90,4 mn amounted 2 M&As while it was USD 34,9 mn in the same period of 2006.

Our corporate finance revenues quadruppled to TRY 3.671 mn in QII, jumping 473,6% compared to 1Q/2007 figure.

640PUBLIC OFFERING SIZE(USD Million)2006/1H2007/1H7081.911M&As (USD Million)2006/1H2007/1H34,990,4

Chart1

707.9

1911.2

Sheet1

181.801,837.00

318.3074.20

207.801,911.20

707.901,911.20

Sheet1

Sheet2

Sheet3

Chart2

3490000090441667

Sheet1

181.801,837.00

318.3074.20

207.801,911.20

707.901,911.20

15,500,000.0010,791,667.00

19,400,000.0079,650,000.00

34,900,000.0090,441,667.00

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0

0

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00

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Subsidiaries

Income Statement Investment 2006/1H 2007/1H YoY %TRY (000)Operating Income:

Interest and trading income 1.812 35.567 1,862% Commission revenues 21.353 22.744 6%Income from corporate finance 6.120 3.672 -40%Other income 5.402 2.820 -47%

Total Operating Revenues 34.687 64.803 86%

Operating Expense-19.028 - 26.900 41%

Net Operating Profit 15.659 37.903 142%

Other Expenses -5.454 -2.464 -54% Financial Expenses -6.291 - 3.126 - 50%

Minority Expense 8.360 - 18.157 n.m.

EBT 12.274 14.156 15,3%

Tax -1.899 - 2.659 40%

Net Profit 10.375 11.497 11%

Operating RevenuesTRY (000)2.8195.4023.6716.12023.11221.35333.493 Investments total revenues amounted to TRY 64.803 mn in 2007/1H, up by 86% on YoY basis.

Interest and trading revenues displayed a sharp growth, increasing to TRY 35.567 mn from TRY 1.812 mn. The dismal 2006/IH results could be attributed to the low credit volumes and the negative impact of the turmoil.

Commission revenues reached TRY 22.744 mn, surging by 173% over QI/07 figure, the commissions had totaled TRY 21.353 in the first half of 2006.

Other revenues amounted to TRY 2.819 mn down from TRY 5.402 mn due to the mainly decline in marked to market value of Private Equity.

2007/1H2006/1H1.81235.56721.35322.7446.1203.6725.4022.820Interest and TradingCommissionsCorporate FinanceOther

Chart1

181133493

2135323112

61203671

54022819

Sheet1

Interest and trading income1,811.0033,493.00

Commission revenues21,353.0023,112.00

Income from corporate finance6,120.003,671.00

Other income5,402.002,819.00

Sheet1

Sheet2

Interest and trading income1,811.0033,493.00

Commission revenues21,353.0023,112.00

Income from corporate finance6,120.003,671.00

Other income5,402.002,819.00

Sheet2

Sheet3

MBD00271978.xls

Chart1

181133493

2135323112

61203671

54022819

Sheet1

Interest and trading income1,811.0033,493.00

Commission revenues21,353.0023,112.00

Income from corporate finance6,120.003,671.00

Other income5,402.002,819.00

Sheet1

00

00

00

00

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Brokerage & Trading Commissions (YoY)3.2915.0642.9101.0142007/1H2006/1HBrokerageAsset ManagementOther15,13,24,82,91(TRY Million)0,717,2 Brokerage commissions jumped to TRY 17.2 mn, recording roughly 1.5 x rise in QII over its QI performance. YoY increase is 14%.

Commissions on derivatives rocketed by five-folds on YoY basis in 2007/1H, reaching TRY 3.153 mn vs TRY 619K in 2006/1H.

Fees on asset management rose to TRY 4.8 mn due to the effect of Asset Management consolidation.This account will likely post better results as 70% of Asset Management will be consolidated

Chart1

1598620718253710

32911445064071

29099541014255

Sheet1

15,986,20718,253,710

3,291,1445,064,071

2,909,9541,014,255

Sheet1

Sheet2

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Brokerage & Trading Commissions (QoQ)2007/1Q2007/2Q2007/1Q2007/2Q2007/1Q2007/2QBROKERAGE ASSET MANAGEMENTOTHER(TRY Million)7.517.20,574,80.250.7(TRY Million) (TRY Million)

Chart1

7505000

18253000

Sheet1

7,505,000.0018,253,000.00

570,000.005,064,000.00

258,000.001,014,000.00

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Chart2

570000

5064000

Sheet1

7,505,000.0018,253,000.00

570,000.005,064,000.00

258,000.001,014,000.00

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258000

1014000

Sheet1

7,505,000.0018,253,000.00

570,000.005,064,000.00

258,000.001,014,000.00

Sheet1

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Margin Trading2006/1H2007/1H 6.454 2.586INTEREST ON LOANS EXTENDED TO CLIENTS (TRY 000)YoY Growth 149 % Interest income on margin accounts recorded 149% YoY growth, reaching TRY 6.5 mn in the first half of the year, surging by TRY 3.9 mn with respect to the same period of 2006.

Loans to clients reached TRY 69,8 mn as of 2007/1H, surging by 231% with respect to the same period of 2006.2.586OUTSTANDING LOANS (TRY Million)1Q/062Q/063Q/0620061Q/072Q/0731.52135.249.354.769.8

Chart3

2586018

6454420

Sheet1

2,586,0186,454,420

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0

0

Sheet2

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Chart2

31480540.83

21046885.91

35236438.16

49306678.73

54769322.53

69813651.25

Sheet1

kredi hacmi

1210KREDILER31,480,540.83Mar-06

1210KREDILER21,046,885.91Jun-06

1210KREDILER35,236,438.16Sep-06

1210KREDILER49,306,678.73Dec-06

1210KREDILER54,769,322.53Mar-07

1210KREDILER69,813,651.25Jun-07

261,653,517.41

31,480,540.8321,046,885.9135,236,438.1649,306,678.7354,769,322.5369,813,651.25

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0

0

0

0

0

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Operating ExpensesEmployee Costs8.998 12.782 42%Severance 96 133 39%Depreciation 617 609 -1,3%Goodwill -163 -728 347%Consultancy 778 337 -57%Operating Costs3.744 7.040 88% Sundry Taxes 330 277 -16%Advertisement 698 298 -57%

Marketing and Dist. 615 2.193 257% Other3.315 3.959 19%Total 19.028 26.900 41%

TRY (000) 2006/1H 2007/1H YoY Operating costs recorded 41% rise on YoY basis.

The cost structure includes several one-off expenses such as IPO expenditures.

Foreign marketable security transaction shares and other marketing, selling and distribution expenses also emerged as important cost components of operating expenses in the first half.

A rise in employee expenses was observed in 2007/1H as indicated in 1Q/2007.

*Private Equity Developing Private Equity BusinessPrivate equity activities have increased considerably over the last two years in Turkey. Completed exits of Private Equity are Cinemars, 30.25% annual yield in USD terms and Tuyap, 45.75% annual yield in USD terms.

Private Equitys most recent investment in July was in Ode Insulation, a building materials company. The equity investment was $5 mn for a 17.24% stake.

New projects are in the pipeline to be finalized in the second half of the year. Private Capital Track RecordExits Private Equity is the leader with profitable investments in the fast growing private equity marketFirmExit PriceInvestmentsFirmInvestmentIRR(1) Private Equity H1/2007 Results Private Equity announced a net income of $0.7 mn in H1/2007.Revenues of $12.6 mn in H1/2007 include mostly the sales proceeds from the Tuyap exit in February 2007 (at a price of $10.8 mn). The remaining revenue comes from Nevotek (a leading IP telephony application software developer), the only company Private Equity currently fully consolidates.

Sheet1

Probil$3.2mnCinemars$19.4mn30.25%

ITD$1.9mnTuyap$10.8mn45.75%

Nevotek$3.0mn

Step Hali$3.5mn

Beyaz Fleet$4.0mn

Cinemars$11.5mn

Tuyap$7.0mn

Ode$5.0mn(1) IRR in USD terms

Sheet2

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Sheet1

Probil$3.2mnCinemars$19.4mn30.25%

ITD$1.9mnTuyap$10.8mn45.75%

Nevotek$3.0mn

Step Hali$3.5mn

Beyaz Fleet$4.0mn

Cinemars$11.5mn

Tuyap$7.0mn

Ode$5.0mn(1) IRR in USD terms

Sheet2

Sheet3

Maxis Securities Maxis Securities was established in one of the world financial centers London, UK with in the target of expanding its business lines to international capital markets.

We expect the company to be fully in operation in QIII/07 as all the legal procedures have recently been completed.

Maxis started to open new client accounts, which will likely expedite in the periods to come

Comments on Profit The first half profit confirms our year-end profit estimate.

Full consolidation of Asset Management that started in QII/07 (merely 20% was consolidated) led the portfolio commissions to jump to TRY 4.8 mn in IH/07. The effect of 70% consolidation will be seen in next quarter.

REIT shares amounted to nominal TRY 6.63 mn (TRY 13.3 mn in market value), which are held in our accounts, form a potential profit for Investment.

There are numerous corporate finance related projects in the pipeline that might significantly elevate our corporate finance revenues in the second half.

We have been waiting for the legal approval for our new mutual funds.

*www.isyatirim.com.trwww.isinvestment.com INVESTMENT

HEAD OFFICEIs Kuleleri Kule-2 Kat 124. Levent 34330 IstanbulPh: (0212) 350 20 00Fax: (0212) 325 12 26 325 12 48IZMIR BRANCHTalatpasa Bulvari No:27 Alsancak 35220 IzmirPh: (0232) 488 90 00Fax: (0232) 464 69 43 464 68 98KALAMISBRANCHFenerbahce, Fener Kalamis Cad. Tibas-Belvu Sitesi A2 Blok Daire 3Kadikoy 81030 IstanbulPh: (0216) 542 72 00 Fax: (0216) 542 72 01ALMA ATALIAISON OFFICE181 Zheltoksan St. The Regent AlmatyOda 108 Almaata 480013 KazakhstanPh: (+73272) 505000Fax: (+73272) 582805

ANKARABRANCHTahran Cad. No:3/8 06700 Kavaklidere - Ankara Ph: (0312) 455 26 50Fax: (0312) 466 26 62YENIKOYBRANCHKoybasi Caddesi Iskele Cikmazi No 277 34464 Yenikoy ISTANBUL Ph: (0212) 363 01 00 Fax: (0212) 363 01 01LEVENTLIAISON OFFICEYapi Kredi Plaza C Blok Kat 9 Bolum 25/B 34330 Besiktas, IstanbulPh: (0212) 282 00 18Fax: (0212) 282 00 19SUBSIDIARYMAXIS SECURITIES LTD8 Princes StreetLondon EC2R 8HL UKPh: (+44207) 397 1431Fax: (+44207) 726 2566

The information in this report is prepared by YATIRIM MENKUL DEGERLER A.. ( 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.