LSRG.L Regulatory News (LSRG)

30 Jun 2008 07:23



NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

For immediate release

LSR GROUP AGM RESOLUTIONS

30 June 2008, St. Petersburg, LSR Group, a leading real estate developer and building materials producer in Russia (LSE: LSRG; MICEX, RTS: LSRG) held its Annual General Meeting on 26 June 2008 followed by a meeting of the newly elected Board of Directors. The agenda of the Meeting included such items as approving the Annual Report of OJSC LSR Group on results in 2007, electing the CEO of the Company for a new term, electing new members of the Revision Commission, determining the number of Board members and electing the Board of Directors, distributing the profit, and also approving the auditors of the Company for 2008. The shareholders of the Company voted in favour of the decisions recommended by the Board on all of the agenda items. 

The Meeting of Shareholders of OJSC LSR Group was attended by the holders of 80,201,317 (85.63%) votes out of 93,663,832 (100%) votes. Hence, there was a quorum on all of the items reviewed.

The Meeting of Shareholders by a majority of votes approved the Annual Report of OJSC LSR Group on Results in 2007, annual financial statements of the Company for the past year prepared in conformity with Russian standards as well as elected Igor Levit, CEO of LSR Group, for a new term (from 14 August 2008 for three years) and the Board of Directors in its former composition and consisting of 7 members including 3 independent directors:  

1. Igor Levit, CEO of LSR Group 2. Mikhail Romanov, Managing Director of LSR Group

3. Elena Tumanova, CFO of LSR Group

4. Dmitry Goncharov, Managing Director of LSR Europe GmbH (a company of LSR Group) 5. Lauri Ratia, Independent Director, Chairman and Member of the Boards of Directors of a number of Finnish companies specializing in different industrial sectors. Chairman of the Boards of Directors of four companies: Sponda plc (real estate in Finland and Russia), Tecnomen plc (messaging and prepaid services systems for world telephone communication operators), Medisize Ltd (medical diagnostics equipment and packaging operations in 8 EU countries), Edita plc (printing, publishing and marketing services in Nordic countries). 6. Sergey Skaterschikov, Independent Director, Chairman of the Board of Directors of IndexAtlas Group, Vice President of OJSC MRS, and also a Member of the Boards of Directors of OJSC OMZ, OJSC Kirovsky Zavod, Independence Group and others. 7. Seppo Juha Remes, Independent Director, CEO of Kiuru Partners LLC a consultancy company, member of the Boards of Directors of OJSC RAO UES of Russia, OJSC OMZ, OJSC Severstal-Avto, OJSC SIBUR and others. Chairman of the Board of Directors of EOS Russia.

The meeting also elected the Revision Commission of OJSC LSR Group comprising Company managers as follows: 

1.  Dmitry Kutuzov, Deputy CFO of LSR Group, Head of Treasury Department 2.  Yury Terentiev, Director for Information and Analytical Research 3.  Dmitry Trenin, Director for Corporate Capital Management

The Meeting elected ZAO KPMG as auditor of the IFRS based consolidated statements of the Company for 2008, and ZAO Audit Service as auditor of the RAS based financial statements.

In addition, Company shareholders adopted the decision to distribute the profit of OJSC LSR Group according to the results of the 2007 financial year as follows:

- not to declare dividends on ordinary registered shares of the Company for 2007; - not to pay remunerations and compensations to the members of the Revision Commission for the period of discharging their duties until the next annual General Meeting of Shareholders of the Company; - to determine the payment of remuneration and compensation costs to the independent members of the Board of Directors for the period of discharging their duties as members of the Board of Directors in the amount provided for in the contracts. The remunerations and compensations will be payable in accordance with the procedure set forth in Regulation on Board of Directors;  

- not to distribute the remaining net profit for the 2007 financial year.

Igor Levit, CEO and member of the Board of Directors of OJSC LSR Group, said: 

"First of all, I would like to express my appreciation to the shareholders for their trust in my re-election for a new term. I intend to continue focusing on the delivering efficient growth and value creation for our shareholders. I would also like to thank the shareholders for their support of the decisions recommended by the Board of Directors including the decision on profit capitalisation to develop the Company and implement our global investment projects. This decision is fully in line with the dividend policy of the Company adopted prior to LSR's IPO." 

The newly elected Board of Directors of LSR Group re-elected Dmitry Goncharov, as the Board Chairman as well as the following Committees:

Audit Committee: 

-  Seppo Juha Remes, member of the Board of Directors of OJSC LSR Group, Independent Director - Chairman of the Committee

- Elena Tumanova, member of the Board of Directors, CFO of OJSC LSR Group

- Sergey Skaterschikov, member of the Board of Directors of OJSC LSR Group, Independent Director.

Human Resources and Compensation Committee:

-  Sergey Skaterschikov, member of the Board of Directors of OJSC LSR Group, Independent Director - Chairman of the Committee. 

- Lauri Ratia, member of the Board of Directors of OJSC LSR Group, Independent Director

- Dmitry Goncharov, Managing Director of LSR Europe GmbH (a company of LSR Group).

Strategy and Investments Committee:

-  Lauri Ratia, Member of the Board of Directors of OJSC LSR Group, Independent Director - Chairman of the Committee

- Igor Levit, Member of the Board of Directors, CEO of OJSC LSR Group

- Sergey Skaterschikov, Member of the Board of Directors of OJSC LSR Group, Independent Director.

The minutes of the AGM are available at: http://www.lsrgroup.ru/documents/en/agm.doc

NOTES TO EDITORS: 

OJSC LSR Group is a diversified construction company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate development. The Group includes enterprises for extraction and processing of aggregates, production and transportation of building materials, and housing construction - from mass market large-panel housing to elite property built after designs made by leading domestic and foreign architects. 

LSR Group has operations and offices in a number of cities in the Leningrad Oblast, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs over 15,000 people. 

In 2005 and 2006, the revenues of LSR Group (according to IFRS statements) were US$ 463 million and US$ 777 million respectively. In 2007, the revenues amounted to US$ 1,403 million.

LSR Group has a B1 rating from Moody's Investors Service (outlook - Stable) assigned in July 2007 and confirmed on 30 May 2008 and a B+ rating by Fitch Ratings (outlook - Stable) assigned on 30 May 2008. The Group's shares are listed on MICEX and RTS and on the London Stock Exchange in the form of GDRs since November 2007.

In 2007, LSR Group was awarded 'The Company of the Year' National Award in the 'Construction' category.

For more details please contact:

Press Service, LSR Group 

+7 (812) 314-1044

press@lsrgroup.ru~ www.lsrgroup.ru

Legal disclaimer:

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.

Neither these materials nor any copy of it may be taken or transmitted into the United States, Australia, Canada or Japan. These materials do not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor. The offer and the distribution of these materials and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

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