LSRG.L Regulatory News (LSRG)

12 May 2009 07:10



NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, 

IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

For immediate release

LSR Group obtains a US$ 150 million loan from Rosselkhozbank 

Two subsidiary companies of LSR Group, OJSC Pobeda LSR and OOO GDSK signed loan agreements with OJSC Rosselkhozbank for an aggregate amount of US$ 150 million. 

The loans are granted for a 3-year term. The transactions were approved by the Board of Directors of LSR Group on 17 April 2009. 

Note to Editors:

OJSC LSR Group is a building materials and real estate 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 region, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. 

In 2007, the sales revenues of LSR Group (according to the IFRS-based financial statements) were RUB 35,858 million, in 2008- RUB 49,813 million.

LSR Group is a public company, with its GDRs listed and traded on the London Stock Exchange and its shares listed and traded on MICEX and RTS. 

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

OJSC Pobeda LSR (a subsidiary of LSR Group) is the largest producer of ceramic bricks in Russia. It comprises three brick factories in St. Petersburg and the Leningrad region: Keramika, Lenstroikeramika and Pobeda. The product range of Pobeda LSR includes all types of building and facing bricks as well as porous large-format RAUF bricks. Pobeda LSR is developing its own retail chain of Brick Centre outlets and has its own sources of raw materials: Krasny Bor quarries of Cambrian Blue Clay and Lenstroikeramika-Karier. Pobeda LSR has a regional representative office in Moscow.

OOO City House Building Company (a subsidiary of LSR Group) was founded in 2001. The company acts as customer, investor and developer to make arrangements for the investment in and construction of modern mass market and business class residential compounds. Since 2003, the company has completed 39 projects with a total effective area of over 500,000 sq.m. The company's current projects have a total area of 6 million sq.m and are at different stages of implementation. 

 For more details please contact:

LSR Group Press Service

Tel.: +7 812 314 10 44

E-mail: press@lsrgroup.ru www.lsrgroup.ru

Legal disclaimer:

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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