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TÜRKYE FNANS KATILIM BANKASI A.. INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

To the Board of Directors of Türkiye Finans Katilim Bankasi A.. stanbul INDEPENDENT ACCOUNTANTS' REVIEW REPORT Introduction We have reviewed the accompanying condensed balance sheet of Türkiye Finans Katilim Bankasi A.. ("the Participation Bank") as of June 30, 2008 and the related condensed statements of income, changes in equity and cash flows for the six-month period then ended. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Financial Reporting Standards ("IFRS"). Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Participation Bank. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information does not present fairly, in all material respects, the financial position of Türkiye Finans Katilim Bankasi A.. as at June 30, 2008, and of its financial performance and its cash flows for the six-month period then ended in accordance with IFRS. DRT BAIMSIZ DENETM VE SERBEST MUHASEBEC MAL MÜAVRLK A.. Member of DELOITTE TOUCHE TOHMATSU Istanbul, August 14, 2008

INDEX

Page No.

Balance Sheet Income Statement Statement of Changes in Shareholders' Equity Cash Flow Statement Notes to Financial Statements

1-2 3 4 5 6-12

TÜRKYE FNANS KATILIM BANKASI A.. CONDENSED BALANCE SHEET AS AT JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

ASSETS Notes Cash and Cash Equivalents Reserve Deposits at the Central Bank (Net) Financial Assets at Fair Value through Profit or Loss (Net) Derivative Financial Instruments Loans, Leasing Receivables and Advances to Customers (Net) Available for Sale Investments Premises and Equipment (Net) Intangible Assets (Net) Other Assets Deferred Tax Asset (Net) Total Assets 4 11 5 6 7 8

June 30, 2008 TRY'000 996,348 186,961 5,787 44,655 4,674,132 2,447 91,995 2,620 187,143 3,897 6,195,985

December 31, 2007 TRY'000 1,163,061 167,801 4,611 7,740 3,968,321 2,407 88,842 2,952 167,374 4,033 5,577,142

The accompanying notes form an integral part of these financial statements.

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TÜRKYE FNANS KATILIM BANKASI A.. CONDENSED BALANCE SHEET AS AT JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

LIABILITIES Notes Customers' Current and Profit Sharing Accounts Derivative Financial Instruments Funds Borrowed Obligations Under Finance Leases Corporate Tax Payable Provisions Other Liabilities Total Liabilities Equity Share Capital Nominal Capital Total Paid-In Capital Revaluation Fund Legal Reserves and Accumulated Gain Total Equity Total Liabilities And Shareholders' Equity 9 11 10

June 30, 2008 TRY'000 4,770,960 39,921 153,110 1,934 9,169 24,406 529,295 5,528,795

December 31, 2007 TRY'000 4,306,224 7,709 207,977 8,503 9,102 20,296 426,237 4,986,048

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292,047 292,047 11,656 363,487 667,190 6,195,985

292,047 292,047 11,656 287,391 591,094 5,577,142

The accompanying notes form an integral part of these financial statements.

2

TÜRKYE FNANS KATILIM BANKASI A.. CONDENSED STATEMENT OF INCOME FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

Notes

January 1 ­ June 30, 2008 TRY'000 344,131 12,037 23,589 10,800 86 390,643 (187,908) (4,915) (229) (193,052) 197,591 50,461 (23,743) 26,718

April 1 ­ June 30, 2008 TRY'000 179,032 5,725 8,140 5,498 18 198,413 (95,106) (2,045) (73) (288,880) 101,189 26,586 (12,044) 14,542

January 1 ­ June 30, 2007 TRY'000 265,261 14,185 13,025 9,539 5,262 307,272 (145,326) (2,345) (393) (148,064) 159,208 38,083 (15,209) 22,874

April 1 ­ June 30, 2007 TRY'000 136,544 7,238 7,602 4,891 2,780 159,055 (76,093) (1,073) (202) (218,760) 81,687 20,579 (8,661) 11,918

Income from Loans Income from Finance Leases Income from Deposit at Banks Income from Reserve Deposit at the Central Bank Income from Marketable Securities and Other Income Expense on Deposits Expense on Borrowings Other Profit Sharing Expense Net Profit Sharing & Similar Income Fee And Commission Income Fee And Commission Expense Net Fee And Commission Income Net Profit Sharing & Fee and Commission Income Impairment Losses on Loans and Advances Other Operating Income General Administrative and Other Operating Expenses Foreign Exchange Gains (net) OPERATING PROFIT BEFORE TAXATION Taxation NET PROFIT

224,309

115,731

182,082

93,605

(34,656) 16,192 (129,611) 19,223

(17,897) 7,323 (64,853) 4,094

(15,624) 12,444 (106,587) 10,425

(3,044) 5,981 (54,969) 5,026

95,457 (19,361) 76,096

44,398 (9,026) 35,372

82,740 (12,108) 70,632

46,599 (9,374) 37,225

The accompanying notes form an integral part of these financial statements.

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TÜRKYE FNANS KATILIM BANKASI A.. CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

Share Capital At January 1, 2007 Profit for the Period At June 30, 2007 At January 1, 2008 Profit for the Period At June 30, 2008 278,860 278,860 292,047 292,047

Inflation Adjustment To Capital 6,593 6,593 -

Legal Reserves 11,656 11,656 11,656 11,656

Accumulated Profit/(Losses) 140,732 70,632 211,364 287,391 76,096 363,487

Total 437,841 70,362 508,473 591,094 76,096 667,190

The accompanying notes form an integral part of these financial statements.

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TÜRKYE FNANS KATILIM BANKASI A.. CONDENSED STATEMENT OF CASH FLOW FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

January 1 ­

Notes Cash Flows From Operating Activities: Net Profit For The Period Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities: Depreciation of premises and equipment booked in operating expenses Amortization of intangible assets Provision for losses on loan and leasing receivables Depreciation of assets held for sale Impairment of assets held for sale Provision for employment termination benefits Unused vacation payment provision Other provision& impairment expenses (Gains)/losses on sale of property, plant & equipment Accrued income, net Income tax provision Deferred tax Accruals on derivative transactions Reversals on provisions Operating (loss) /profits before changes in operating assets/liabilities Changes in operating assets and liabilities: (Increase)/ decrease in loans and leasing receivables (Increase) / decrease in other assets Increase in customers' current and profit sharing accounts Increase / (decrease) in other creditors, taxes & liabilities Employee termination paid Income tax paid Net Cash (Used In) Provided by Operating Activities Cash Flows From Investing Activities: (Increase) / decrease in reserve requirements with the central bank (Increase) / decrease in available for sale investments Decrease in financial assets at fair value through profit or loss Purchase of premises and equipment Purchase of intangible assets Sale of premises and equipment Sale of assets held for sale Net Cash Used In Investing Activities Cash Flow From Financing Activities: Increase in obligations under finance lease Net cash (used in)/provided by financing activities Net Increase In Cash And Cash Equivalents Cash And Cash Equivalents At The Beginning Of The Period (*) 76,096 June 30, 2008 TRY'000

January 1 ­

June 30, 2007 TRY'000 70,632

7 8 5

3,758 440 15,325 70 44 460 354 3,525 (15) (6,105) 19,225 136 (4,703) (6,982) 101,628 (711,578) (19,766) 462,410 55,583 (19,173) (19,158) (130,896) (18,849) (40) (3,238) (7,071) (108) 220 738 (28,348) (6,735) (6,735) (165,979) 1,162,167

5,728 802 15,624 17 269 637 2,912 (986) 2,533 13,244 (1,136) 110,276 (573,869) (4,078) 410,828 130,491 (197) (5,349) 68,102 (49,843) 1,120 (25,824) (11,218) (382) 1,168 379 (84,600) 3,008 3,008 (13,490) 178,551 165,061

Cash And Cash Equivalents At The End Of The Period (*) 996,188 (*) Cash and cash equivalent balances on the balance sheet contain TRY 160 thousand interest accrual which have been eliminated at the cash flow statement (December 31, 2007 - 894)

The accompanying notes form an integral part of these financial statements.

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TÜRKYE FNANS KATILIM BANKASI A.. NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

1.

ACTIVITIES OF THE PARTICIPATION BANK Türkiye Finans Katilim Bankasi A.. (the "Participation Bank") was established in accordance with the provisions of Decree No. 83/7506, issued on December 16, 1983, related to incorporation of Institutions in Turkey. The Participation Bank (formerly; Anadolu Finans Kurumu A..) obtained permission from the Central Bank of Turkey on October 24, 1991 and commenced operations on 4 November 1991. In accordance with the resolution in the board meeting of Anadolu Finans Kurumu A.. numbered 1047, on May 31, 2005 a merger between the Participation Bank and Family Finans Kurumu A. was decided. All the assets, liabilities and also off-balance sheet liabilities of Family Finans Kurumu A.. were transferred to Anadolu Finans Kurumu A.. during the merger. With the resolution dated October 20, 2005 and numbered 1726 by Banking Supervision and Regulation Agency ("BRSA"), the transfer agreement, signed by the board of directors' of Anadolu Finans Kurumu A. and Family Finans Kurumu A.. and modified draft of main contract of Anadolu Finans Kurumu A. were approved. The registry on the decision regarding the merger which was concluded in the general assemblies of both participation banks on December 23, 2005 was approved by BRSA's dated December 28, 2005, and numbered 1764 resolution. In accordance with BRSA's resolution dated November 30, 2005, and numbered 1747 related to the merger of both participation banks, the title was changed into Türkiye Finans Katilim Bankasi A.. providing that required permission be given by the Council of Ministers within the framework of the 48th article of the Turkish Commercial Law. The new title was registered by the Turkish Trade Registry of Istanbul on December 30, 2005 in accordance with the Turkish Commercial Law numbered 6762. 60% share of the Participation Bank was transferred to The National Commercial Bank at March 31, 2008 in accordance with the legislation of BRSA nr. 2489 on February 28, 2008. After the sale, the main strategic shareholders of the Participation Bank are Ülker Group with 19.31% share and Boydak Group with 20% share. The Participation Bank is a member of the National Commercial Bank Group. The Participation Bank's head office is located at Adnan Kahveci Caddesi No:139 34876 Yakacik ­ Kartal / stanbul.

2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis for Preparation The condensed financial statements as of June 30, 2008 have been prepared in accordance with IAS 34 (Interim Financial Reporting). The condensed financial statements have been prepared on a basis consistent with the accounting policies set out in the financial statements of the Participation Bank for the year ended December 31, 2007.

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TÜRKYE FNANS KATILIM BANKASI A.. NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

3.

SEGMENT REPORTING A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments. A geographical segment is engaged in providing products or services within a particular economic environment that are subject to risks and return that are different from those of segments operating in other economic environments. The Participation Bank's operations are mainly located in Turkey. There is no operation of the Participation Bank outside Turkey and accordingly, geographical segment information is not presented.

As of and period ended June 30, 2008

Consumer Banking Income from Operations Other (*) Net Profit Sharing & Fee and Commission Income Net Income of the Segment (**) Operating Profit Before Taxation Tax Income After Tax Net Income Assets of the Segment Total Assets Liabilities of the Segment Shareholders Equity Total Liabilities Other Segment Information Depreciation (***) 23,989 23,989 1,508,424 1,508,424 4,137,687 4,137,687 59,198 59,198 3,727,458 3,727,458 839,773 839,773 12,270 12,270 452,947 452,947 197,134 197,134 2,581 (71,018) 154,156 83,138 23,989 23,989 Corporate Banking 276,180 (135,241) 140,939 59,198 59,198 Treasury 19,147 (18,915) 232 12,270 12,270 Other 19,361 (19,361) (19,361) 507,157 507,157 354,201 667,190 1,021,391 4,323 3,828 Total 224,309 224,309 95,457 95,457 19,361 76,096 76,096 6,195,985 6,195,985 5,528,795 667,190 6,195,985 6,904 3,828

Amortization 440 440 Impairment losses recognized in income statement 2,581 55 2,636 (*) Since a segment can use the deposits of the other segment there is a fund transfer between the segments. Those kinds of income and expenses generated from fund transfer are recalculated based on the average rates and average amounts. (**) Personnel and operational expenses are allocated based on the asset amount of the each segment. (***) The depreciation also involves the depreciation of assets held for sale in the amount of TRY 70 thousand.

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TÜRKYE FNANS KATILIM BANKASI A.. NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

3.

SEGMENT INFORMATION (Cont'd)

Period ended June 30, 2007

Consumer Banking (53,380) 96,538 43,158 22,432 22,432 22,432 22,432 Corporate Banking 225,079 (140,035) 85,044 27,824 27,824 27,824 27,824 Treasury 10,782 (10,033) 749 7,712 7,712 7,712 7,712 1,851 Other (399) 53,530 53,131 24,772 24,772 12,108 12,664 12,664 6,816 5,745 802 1,851 269 Total 182,082 182,082 82,740 82,740 12,108 70,632 70,632 8,667 5,745 802 2,120

Income from Operations Other (*) Net Profit Sharing & Fee and Commission Income Net Income of the Segment (**) Operating Profit Before Taxation Tax Income After Tax Net Income Other Segment Information Depreciation (***) Amortization Impairment losses recognized in income statement

(*) Since a segment can use the deposits of the other segment there is a fund transfer between the segments. Those kinds of income and expenses generated from fund transfer are recalculated based on the average rates and average amounts. (**) Personnel and operational expenses are allocated based on the asset amount of the each segment. (***) The depreciation also contains the depreciation of assets held for sale in the amount of TRY 17 thousand.

As of December 31, 2007

Consumer Banking Assets of the Segment Total Assets Liabilities of the Segment Shareholders Equity Total Liabilities 1,324,997 3,504,569 3,504,569 3,167,082 1,010,314 1,010,314 768,766 216,500 216,500 316,297 254,665 591,094 845,759 5,577,142 4,986,048 591,094 5,577,142 Corporate Banking Treasury Other Total

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TÜRKYE FNANS KATILIM BANKASI A.. NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

4.

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (NET) June 30, 2008 TRY'000 Financial assets held for trading 5,787 5,787 June 30, 2008 TRY'000 8,369 160 8,529 (2,742) 5,787 December 31, 2007 TRY'000 4,611 4,611 December 31, 2007 TRY'000 4,772 4,772 (161) 4,611

Investments Equity Shares Other Less: Impairment losses

Gains and losses on investments held for trading are included in the statement of income. 5. LOANS, LEASING RECEIVABLES AND ADVANCES TO CUSTOMERS (NET) June 30, 2008 TRY'000 Performing loans Leasing receivables (net) Non-performing loans & leasing receivables Less: allowance for individually impaired loans Less: allowance for collectively impaired loans 4,480,963 166,027 141,065 (79,790) (34,133) 4,674,132 June 30, 2008 TRY'000 Short term loans Medium and long term loans Leasing receivables ( net) Non-performing loans & leasing receivables Less: allowance for individually impaired loans Less: allowance for collectively impaired loans 1,767,073 2,713,890 166,027 141,065 (79,790) (34,133) 4,674,132 December 31, 2007 TRY'000 3,737,542 207,437 116,000 (60,701) (31,957) 3,968,321 December 31, 2007 TRY'000 1,443,689 2,293,853 207,437 116,000 (60,701) (31,957) 3,968,321

9

TÜRKYE FNANS KATILIM BANKASI A.. NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

5.

LOANS, LEASING RECEIVABLES AND ADVANCES TO CUSTOMERS (NET) (cont'd) June 30, 2008 TRY'000 Export loans Corporate Loans Consumer loans & credit cards Loans granted to foreign institutions Other Total performing loans 115,842 3,341,416 1,007,247 13,887 2,571 4,480,963 December 31, 2007 TRY'000 105,600 2,696,933 906,044 26,231 2,734 3,737,542

Movements in the reserve for losses on loans and advances are as follows: January ­ June 30, 2008 TRY'000 Reserve for cash loans: As at 1 January Charge for the period Charge to the income statement Charge to the profit& loss sharing account Collections Provision released As at 30 June Finance lease receivables are as follows: June 30, 2008 TRY'000 Minimum lease payments receivable Less: Unearned finance income Minimum lease payments receivable (net) 6. AVAILABLE FOR SALE INVESTMENTS (NET) Name Profit/loss participation fund (*) June 30, 2008 TRY'000 2,447 2,447 December 31, 2007 TRY'000 2,407 2,407 188,022 (21,995) 166,027 December 31, 2007 TRY'000 238,744 (31,307) 207,437 92,658 43,106 23,895 19,211 (9,584) (12,257) 113,923 January -June 30, 2007 TRY'000 66,879 15,624 8,136 7,488 (2,710) (11,741) 68,052

(*) Composed of the profit/loss participation fund of Pakistan Republic and Maybank.

10

TÜRKYE FNANS KATILIM BANKASI A.. NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

7.

DERIVATIVE FINANCIAL INSTRUMENTS A derivative financial instrument is a financial contract between two parties where payments are dependent upon movements in price in one or more underlying financial instruments, reference rates or indices. Derivative financial instruments include forwards and swaps. The table below shows the fair values of derivative financial instruments. The notional amount is the amount of a derivative's underlying asset, reference rate or index and is the basis upon which changes in the value of derivatives are measured. The notional amounts indicate the volume of transactions outstanding at period-end and are neither indicative of the market risk nor credit risk.

Fair Value Assets Forward contracts Currency swap contracts Total June 30, 2008 Fair Value Notional Amount Liabilities in TRY Equivalents (34,257) (5,664) (39,921) 1,741,346 834,916 2,576,262 Fair Value Assets December 31, 2007 Notional Fair Value Liabilities Amount in TRY Equivalents 7,247 462 7,709 813,262 98,392 911,654

37,261 7,394 44,655

7,294 446 7,740

8.

RELATED PARTY TRANSACTIONS AND BALANCES June 30, 2008 TRY'000 119,279 1,852 37,598 235,650 June 30, 2008 TRY'000 5,291 (1,539) June 30, 2008 Compensation of key management personnel Short-term compensation of key management personnel Termination benefits TRY'000 1,558 116 December 31, 2007 TRY'000 81,852 61 21,047 69,375 March 31, 2007 TRY'000 4,589 (8,476) December 31, 2007 TRY'000 3,583 103

Balances with the related parties Loans Finance leases Non-cash loans Deposits

Transaction with the related parties Profit share income Profit share expense

11

TÜRKYE FNANS KATILIM BANKASI A.. NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2008

Amounts expressed in thousands of New Turkish Lira ("TRY") unless otherwise indicated.

9.

COMMITMENTS AND CONTINGENCIES June 30, 2008 TRY'000 Letters of guarantee Letters of credit loans and commitments Acceptances Commitments Other Derivatives 2,616,929 350,468 75,945 1,263,283 5,917 2,576,262 6,888,804 December 31, 2007 TRY'000 2,063,539 268,513 45,721 1,001,329 3,450 911,654 4,294,206

10.

SUBSEQUENT AND OTHER EVENTS The Participation Bank has decided to increase its capital from TRY 292,047 thousand to TRY 800,000 thousand at the meeting of Board of Directors held at June 12, 2008. TRY 250,000 thousand will be paid by the shareholders, TRY 257,666 thousand will be transferred from the reserves and the rest will be transferred from the retained earnings with the approval of General Meeting which held at July 18, 2008.

12

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