BOND REDEMPTION OFFER FROM TRANSAERO

Transaero Airlines has offered to redeem in cash outstanding bonds of its Series 01 rouble bond issue through an open subscription. No bondholders have chosen to redeem their bonds, which have a maturity date of October 23, 2013, so Transaero is therefore not required to make any payments. During the redemption period the coupon rate was reduced by 5% and set at 11.85%. The period to the next put option was extended from 12 to 18 months. During redemption period from October 27 to November 3 the bond was being traded with premium and by the close of trading on