LSRG.L Regulatory News (LSRG)

OJSC PO Barrikada (a subsidiary of LSR Group) to construct public objects under the government contract

OJSC PO Barrikada has entered into a government contract with Saint Petersburg Committee for Construction under which a construction department PO Barrikada is to design and construct pre-school educational facilities and secondary schools in the Osinovaya Roscha area in St. Petersburg. The total value of the government contract is RUR 1, 995 million.

Under the contract terms, PO Barrikada is to construct four pre-school educational facilities and two secondary schools by the end of 2010. Reinforced concrete products produced by PO Barrikada will be used in the construction, which will further utilize Barrikada's production capacities. The total area of the objects is 54.5 th. sq. m

Note to Editors:OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, real estate development and panel construction. LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine. In 2008, the sales revenues of LSR Group were RUR 49,813m (IFRS).

OJSC PO Barrikada specialises in the manufacture of prefabricated reinforced concrete products. The company was founded in 1907. Today it has 5 production sites including 4 sites in St. Petersburg, and 1 site in the Leningrad region. Its product mix includes 4,000 items. Barrikada's reinforced concrete products are used to construct residential and industrial buildings, and commercial properties (shopping and leisure centres, hypermarkets, warehouse terminals etc.), to build and maintain roads, and to construct engineering networks and facilities.In addition to St. Petersburg and the Leningrad region, Barrikada's products are supplied to Pskov, Novgorod, Rostov-on-the-Don, Archangelsk, Murmansk, the Far North areas and a number of other Russian regions.

PO Barrikada also performs design and construction of buildings and facilities for residential, industrial and social purposes, and since the beginning of 2009 has installed more than 100 th. sq. m of residential and public buildings.

For more details please contact:

LSR Group Press Service

Tel.: +7 812 314 10 44 Fax: +7 812 458 83 72

E-mail: press@lsrgroup.ru

www.lsrgroup.ru