A competitive bidding procedure aimed at selection of an audit company for auditing State Oil Fund's financial statements for 2003 has come to an end. Leading international audit companies represented in Azerbaijan were invited to participate in the bidding, which was organized in compliance with the national procurement laws. Ernst and Young, Moore Stephens Azerbaijan and AGN MAK-Azerbaijan accepted invitation, while KPMG, Deloitte and Touches and PriceWaterhouseCoopers declined to participate in the bidding.

Evaluation of the financial and technical proposals presented by the bidding
audit companies resulted in, pursuant to the Statutory Regulations of the State
Oil Fund, the appointment by the President of the Republic of Azerbaijan of the
Azerbaijan representative office of Ernst and Young as the auditor of the Fund's financial statements for 2003.

Financial proposals of the bidders (inclusive of VAT) were as follows:

Ernst and Young 133 881 620 manats;
Moore Stefens Azerbaijan 145 494 000 manats;
AGN MAK Azerbaijan 149 567 832 manats.