Issue of Debt

Bank of Georgia
                  

           Bank of Georgia Receives A US$35 Million Subordinated Loan

JSC Bank of Georgia (LSE: BGEO, GSE: GEB) the leading Georgian universal bank,
announced today that it has placed a US$35 million 10-year subordinated loan.
Merrill Lynch structured the facility. Bank of Georgia has an option to prepay
the facility after the fifth anniversary of the disbursement date with
permission of the National Bank of Georgia.

'We continue to build our capital base to maintain our conservative capital
adequacy standards. I would like to congratulate our funding team on
successfully completing this transaction in the current market environment,'
commented Lado Gurgenidze, Chairman of the Supervisory Board.

About Bank of Georgia

Bank of Georgia, a leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans, deposits and equity in
Georgia, with 32% market share by total assets (all data according to the NBG as
of 30 June 2007). The major component of the Galt & Taggart Index, the bank has
105 branches and over 530,000 retail and more than 55,000 corporate current
accounts. The bank offers a full range of retail banking and corporate and
investment banking services to its customers across Georgia. The bank also
provides a wide range of corporate and retail insurance products through its
wholly-owned subsidiary, Aldagi BCI, as well as asset & wealth management
services.

Bank of Georgia has, as of the date hereof, the following credit ratings:

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Standard & Poor's                        'B+/B'                                       Stable
Moody's                                  'B3/NP' (FC) & 'Ba1/P-3' (LC)                Stable
Fitch Ratings                            'B+/B'                                       Stable
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For further information, please visit www.bog.ge/ir or contact:

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Lado Gurgenidze              Irakli Gilauri        Macca Ekizashvili    Thea Jokhadze
Chairman of the Supervisory  Chief Executive       Head of Investor     Head of Debt Capital
 Board                        Officer               Relations            Markets
[phone]              [phone]       [phone]      [phone]
[e-mail]           [e-mail]       [e-mail]            tjokhadze@bog.g
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This news report is presented for general informational purposes only and should
not be construed as an offer to sell or the solicitation of an offer to buy any
securities. Certain statements in this news report are forward-looking
statements and, as such, are based on the managements current expectations and
are subject to uncertainty and changes in circumstances.