LSRG.L Regulatory News (LSRG)

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LSR Group (LSE: LSRG; MICEX, RTS: LSRG) approved the program of the company's high-priority activities - "Lead the Growth", aimed at growth of LSR Group operations in the period of construction sector recovery.

Igor Levit, CEO, member of the Board of Directors of OJSC LSR Group, comments:"We believe that the lowest point of the economic recession is already in the past, and our main task now is to capitalize on opportunities from the real estate development and construction market recovery for further growth of our business. Even though there is still uncertainty about the recovery level and timing, we should be well-prepared, so that to fully use the opportunities of a new period in the economical cycle to develop our business and to further strengthen our market positions".

Lead the Growth main actions:

Real Estate Development and Construction

1. Launch construction and start pre-sales in a number of development projects in St Petersburg including: 34 Deputatskaya, 5 Kovensky, Smolny Kvartal, Avrora, Vostok.

2. Identify land plots in Moscow and Yekaterinburg for strategic land bank expansion; purchase selected land plots in St Petersburg subject to unique location and attractive prices

3. Complete feasibility study on launch of new development projects in the Moscow region

4. Increase sales and marketing activity

5. Work with partner banks on increase of mortgage offering at company's development projects

Building Materials

1. Identify attractively priced acquisition targets for building materials and aggregates production division

2. Revise capex plan for modernization projects which were suspended during downturn

3. Seek project financing for the brick plant project in St Petersburg and complete feasibility study on construction of a new brick plant in the Moscow region (site has been secured)

4. Prepare a process plan for the re-launch of mothballed capacity

At the same time the company will still have strict working capital policy and control debt level and debt maturity profile to ensure stability of the business.

Note to editors: OJSC LSR Group (the "Company") 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.

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

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 and LSR Group. 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 and other members of LSR Group operate in, as well as many other risks specifically related to the Company, LSR Group and their operations.

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