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Moscow, April 7, 2008. INTOUCH INSURANCE today announced the start of operations in Russia. From tomorrow, April 8, the advertising campaign, website and hotline will be up and running in Moscow. INTOUCH INSURANCE is set to begin sales in Samara by the end of this month, which will be followed by Saint-Petersburg.

INTOUCH INSURANCE is bringing direct insurance to Russia and introducing a new approach to customer relations. Cutting out commission payments to agents will make it possible to offer highly competitive rates and direct customer interaction with accurate and detailed information helps us to evaluate risks and calculate premiums. CRM system synchronized with client databases has been developed exclusively for INTOUCH INSURANCE and guarantees quick and reliable services

A client can apply for an mTPL or buy CASCO policy directly by the telephone hotline 8 (800) 555 00 55 or to apply for it at the company’s website. The documents are then couriered to any location identified by the client. The payout in case of an accident is as quick and as convenient for the client, as possible. INTOUCH INSURANCE saving customers both time and money.

According to a report by UFG and the Federal Insurance Supervisory Authority (FSSN), the rapidly developing Russian insurance market will reach $54.5 billion by 2012, demonstrating an almost three-fold growth as compared last year’s figures. With the country’s economy on the rise, car insurance market is expected to boom. In 2007, more than 34.29 million OSAGO policies were sold in Russia (according to the Russian Association of Motor Insurers RAMI and FSSN) - a figure that is set for further increase: the forecasts are that in 2012, Russians will purchase approximately 3.520 million foreign cars, twice as many as in 2007.

“With the expertise of our international partners INTOUCH INSURANCE is bringing Europe’s best practices to the Russian market,” says Georgy Alikoshvili, INTOUCH INSURANCE General Director. “Aiming to create an approach tailor-made to the Russian market, we have successfully tested the new system with pilot clients by evaluating premiums, answering hotline calls and even commissioning claim adjusters. Combined with the extensive experience of our international partners, this will help us to extend the worldwide success of direct insurance to Russia.”

INTOUCH INSURANCE is part of Dutch-registered INTOUCH Insurance Group B.V., that already successfully operates direct insurance businesses in Europe. The shareholders of INTOUCH Insurance Group B.V. are RSA (UK) one of the world’s leading multinational insurance group, and Direct Insurance Financial Investments ("DIFI") from Israel.

“The launch of the Russian operation is a very important step in our group's development,” says INTOUCH Insurance Group B.V. CEO Doron Schneidman. "We have decided to enter this fast growing market having a proven success record of similar companies operating in other parts of Europe. We are happy that today we can give to Russian customers the unique proposition of purchasing insurance continently over the phone."

Adrian Brown, COO of RSA UK added: “Intouch is bringing direct insurance to Russia for the first time. By enabling customers to buy their insurance direct via the phone and internet they will receive levels of service, products and prices that go beyond what has traditionally been available form the insurance industry. Seven years ago, we took the same concept to the UK through MORE TH>N, which is today one of the leading consumer financial services companies in the UK with over 2 million policies in place.

Through Intouch Insurance Group we are combining RSA’s global expertise and technical excellence with DIFI's experience of building leading positions in new markets including Poland and Czech Republic. We are confident that we will replicate the success of our other direct businesses in Russia.”

About the company

OJSC INTOUCH INSURANCE is part of Dutch-registered INTOUCH Insurance Group B.V., operates in Poland and the Czech Republic. The shareholders of INTOUCH Insurance Group B.V. are RSA (UK) and DIFI (Israel).

RSA is one of the world’s leading multinational quoted insurance groups, with the capacity to write business in over 130 countries and with major operations in the UK, Scandinavia, Canada, Ireland, Asia, the Middle East and Latin America. Focusing on general insurance, it has around 22,000 employees and, in 2007, its net written premiums were £5.8bn (appx. Euro 7.3bn). With an almost 300 year heritage RSA is the oldest insurance company in the world still trading under its original name.

Direct Insurance Financial Investments Ltd (DIFI), listed on Tel Aviv Stock Exchange, has been on the market for over 13 years. DIFI owns the leading direct insurer in Israel.

INTOUCH INSURANCE has partnered with the The European Bank for Reconstruction and Development (EBRD) to pursue mutual goals. The EBRD is the largest single investor in Eastern Europe. It invests mainly in private enterprises, usually together with commercial partners. Today the EBRD uses the tools of investment to help build market economies in countries from central Europe to central Asia.

The European Bank for Reconstruction has signed an agreement to invest in the Company’s business and will become a partner to R&SA and DIFI in this venture.

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