LSRG.L Regulatory News (LSRG)

LSR Group will develop an upper business class segment residential complex in Moscow

CJSC Mosstroyrekonstruktsiya (a subsidiary of LSR Group) has entered into an investment contract to develop an upper business class segment residential complex in the south-west administrative district of Moscow. The complex of a total net sellable area of 170 thousand square meters is planned to be constructed on the plot of land of 4.7 hectares near the Leninsky Prospekt.

The new complex is planned to include 5 residential units, a three-level underground parking, leisure and retail areas as well as an emergency medical care centre and fitness centre.

The estimated amount of investment into the project by CJSC Mosstroyrekonstruktsiya is RUR 18 billion According to the terms of the investment contract, after the project implementation 70% of sellable area of the new complex will be transferred to CJSC Mosstroyrekonstruktsiya ownership.

The construction is planned to start in 2011 with estimated completion date of the first project phase (85 thousand square meters of the net sellable area) in 2014 and the second project phase (85 thousand square meters of the net sellable area) in 2016.

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). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS. CJSC Mosstroyrekonstruktsiya is an investment and construction company founded in 2001. In 2007, the company completed its first project, the Dom na Davydkovskoy business class residential complex. Currently the company is completing a unique project, the Grunwald elite residential development, and is also designing a new multi-purpose business complex New Balchug at Sadovnicheskaya Street, 500 m from the Kremlin. In 2008, the company has strengthened its presence in Moscow's real estate market through the acquisition of property complex at Leningradskoye Shosse. In 2009 Mosstroyrekonstruktsiya became a subcontractor to construct a residential neighbourhood for the military personnel in Balashikha for the use by the RF Ministry of Defence.

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.ruwww.lsrgroup.ru