YAR Communications named agency for one of largest advertisers in Russia; media spending of over $20 million is largest for an American agency in CIS.

NEW YORK--(BUSINESS WIRE)--Dec. 28, 1994--YAR Communications Inc. has been named the agency of record for Khoper, one of the three largest advertisers in the CIS, it was announced today by YAR president Yuri Radzievsky. YAR, a multicultural advertising and marketing firm, has its main offices here and in Moscow.

Khoper, a diversified financial company based in Moscow, spent over $20 million on media this year, Radzievsky said. the company used a number of local agencies before.

"This is a breakthrough for an American agency and its authentic, culturally sensitive approach to emerging free markets such as the CIS," he said.

The agency's initial assignment is to develop a strategic branding program for Khoper's mutual funds. The company, which has a network of over 70 offices throughout Russia, serves more than three million investors.

"YAR was selected over U.S. and local agencies for two reasons: advertising by Russian agencies is still in its infancy in terms of marketing solutions and production techniques and U.S. firms, while they have the sophistication, lack an inside knowledge of the marketplace," said Lev Konstantinov, president and founder of Khoper.

"YAR combines American marketing savvy with a native understanding of the Russian consumer--an essential blend for a company like Khoper," Konstantinov added.

Before starting in business in the U.S. 20 years ago, Radziesvky and his wife, Anna, a co-founder and executive vice president of YAR, grew up and were educated in the former USSR.

Radzievsky, before leaving the Soviet Union in 1975, hosted Russia's most popular satiric game show, which attracted audiences of over 100 million people. "We have remained in close contact with our Russian roots and have

represented over the years both American and Russian enterprises doing business in the CIS," Radzievsky said.

YAR, which signed contracts yesterday to handle Khoper's advertising and public relations, is completing eight 30-second TV spots to air immediately. The spots are being produced in New York.

The commercials, which use chess as a key motif, feature world chess champion Gary Kasparov and a new tag line created by YAR, "We are with those who think." Creation of the commercials coincided with the opening in Moscow this month of the World Chess Olympiad, of which Khoper is the general sponsor.

"Khoper wants to differentiate itself in an emerging free-market economy that is still experiencing the growing pains of becoming a world-class financial system," Radzievsky said.

"The advertising is a striking counterpoint to other mutual fund advertising, because it stresses long-term investing rather than the short-term speculating suggested by so many others in the industry," he said.

The spots also display Khoper's new logo developed by YAR--an animated signature showing a sailboat that successfully navigates a storm-tossed sea by riding the crest of a wave. The logo closes with a rainbow encircling the boat, a symbol of hope in Russia.

"We're metaphorically trying to say that Khoper can help you prevail over the natural forces of risk and volatility," he said.

Khoper, pronounced "howper" was started by Lev Konstantinov, a remarkable 24-year-old entrepreneur who built a chain of retail food kiosks and plowed his return into creating an investment company with 5,000 employees.

YAR Communications counts among its clients AT&T, for which it provides multicultural advertising in the U.S. aimed at some 15 emerging markets in as many languages, and public relations for General Electric in the CIS.

YAR has its headquarters at 220 Fifth Avenue in New York and 37-9 Leningrad Prospect in Moscow.

CONTACT: YAR Communications Inc.

Dick Altman, 212/697-2620