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CONSORTIUM TO INVEST IN RUSSIA'S LARGEST AGRICULTURE TIRE PRODUCER, INCLUDES TITAN INT'L
Source: Russian Direct Investment Fund news release

A consortium of the Russian Direct Investment Fund (RDIF), Titan International, Inc., one of the world's largest manufacturers of agricultural and industrial tires, and One Equity Partners (OEP), a global private equity fund and a subsidiary of JP Morgan Chase & Co, have reached an agreement in principle with Cordiant to invest in Voltyre-Prom, a leading Russian agricultural and industrial tire manufacturer. The transaction is expected to be finalized in the near future.

As result of the investment the consortium will own a controlling stake in Voltyre-Prom, with Titan International becoming its managing partner.

The consortium's investment will allow Voltyre-Prom to update its operations, grow its production of specialty tires for international agricultural machinery, reduce imports by shifting production to Russia and begin to explore export opportunities.

Voltyre-Prom is the leading producer of agricultural and industrial tires in Russia. Its market share in agricultural tires was 43% and 16% in industrial tires in 2012. The company produced circa 1.35 million tires in 2012.

Kirill Dmitriev, CEO of the RDIF, said:

"RDIF completed this deal alongside world class strategic partners from both the global industrial and financial sectors. The involvement of investors of such scale underlines the growth prospects in the Russian agricultural sector. The expertise and knowledge of our partners will help shift the production of world-class tires that currently takes place overseas to Russia. This investment meets the fund's objectives and represents an exciting opportunity to get a foothold in this sector."

Maurice Taylor, Chairman and CEO of Titan International, commented:

"Titan has plans to grow its tire, wheel and track footprint in Russia and CIS countries. John Deere, CNH, Agco and Caterpillar are just a few of Titan's customers increasing their presence in Russia and CIS, and Titan will be there to service them and end users of their equipment as this expansion occurs. It is Titan's belief that the future growth of global farming and mining lies in Russia and CIS countries."

Dick Cashin, Managing Partner of One Equity Partners, said:

"OEP and Titan welcome the opportunity to invest with RDIF to support the growth and development of Voltyre. RDIF has been an exemplary partner throughout the transaction. We are confident that we have the optimal strategy in place to share capabilities, maximize the strength of Titan's brands, support Titan's demanding international customers, and work with the very capable management and workforce at Voltyre."

Dmitry Sokov, CEO of Cordiant, commented:

"The agreement with the consortium will enable Cordiant to focus on passenger and truck tire markets. The deal also includes a 3-year distribution partnership program, with Cordiant selling Voltyre's passenger, truck and light truck tires. Cordiant plans to invest almost $550 million up to the end of 2018 to expand its passenger and truck tire business. This will increase production capacity by up to 12 million tires per year."

Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity investments primarily in the Russian Federation. RDIF's management company is a 100% subsidiary of Vnesheconombank. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Further information at http://www.rdif.ru

Titan International is one of the world's largest manufacturers of agricultural and industrial tires with net sales exceeding US$ 1,8 billion in 2012.

The company operates globally and manufactures under the Titan and Goodyear brands. Its OEM customers include John Deere, AGCO, Case IH/Case Construction, New Holland, Caterpillar and Kubota. Further information at http://www.titan-intl.com

One Equity Partners. Founded in 2001, One Equity Partners, a subsidiary of JP Morgan Chase & Co., currently manages US$ 11 billion portfolio of private equity investments.

By working in partnership with owners and managers, OEP invests globally in transactions that promote strategic and operating change, creating long-term value. Further information at http://www.oneequity.com

Cordiant - is a leading Russian producer of tires. It consists of 4 tire plants and 5 divisions. The revenue for 2012 was 28 billion rubles. The holding produces and supplies about 400 different types of tires. The main brands (auto and light truck tires) and TyRex (cargo and agricultural tires). Further information at http://www.cordiant.ru


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