PIK.L Regulatory News (PIK)

18 Sep 2007 07:00

PIK Group18 September 2007 THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY IN THE UNITED STATES OF AMERICA PIK GROUP PIK GROUP ACQUIRES NEW MOSCOW DEVELOPMENT SITE (LONDON, 18 September 2007) - PIK Group (LSE: PIK), one of Russia's leadingresidential real estate developers, today announced the acquisition of land plotin the southern part of Moscow. The size of the land area is approximately 7.37 hectares. PIK plans to redevelopthe area for mass market residential housing and construct approximately 100,000square meters of housing. Total consideration is US$ 47.6 million. Commenting on today's announcement, Kirill Pisarev, CEO of PIK said: "We continue to maintain a leading position on the Moscow residential market. Weplan to acquire attractive assets in Moscow." Enquiries:PIK Group Tel: +7 (495) 291-67-54Viktor Szalkay Citigate Dewe Rogerson Tel: +44 20 7638 9571David WestoverTom BaldockMarina Zakharova Some of the information in this press release may contain projections or otherforward-looking statements regarding future events or the future financialperformance of PIK. 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. Thesestatements are only predictions and actual events or results may differmaterially. PIK does not intend to or undertake any obligation to update thesestatements to reflect events and circumstances occurring after the date hereofor to reflect the occurrence of unanticipated events. Many factors could causethe actual results to differ materially from those contained in PIK'sprojections or forward-looking statements, including, among others, generaleconomic conditions, PIK's competitive environment, risks associated withoperating in Russia, rapid technological and market change, and other factorsspecifically related to PIK and its operations. - END - NOTES TO EDITORS PIK Group Overview Founded in 1994, PIK is one of the leading vertically integrated residentialdevelopers in Russia with over 14,000 employees across the country. Its businessactivities are concentrated in Moscow and the Moscow region with an increasingfootprint in many of Russia's other regions. Its principal activity is thedevelopment, construction and sale of residential properties in large scaledevelopments targeted primarily at the middle income housing market in Russia. PIK's core activities include: o development of residential real estate projects and sales of completed units, including servicing and maintenance of residential real estate developed by PIK and other developers; o production and assembly of concrete panel housing in Moscow as a subcontractor for the Moscow city government; and o production and sale of raw materials and construction materials. The last three years between 2004 and 2006, PIK has completed over 2.5 millionsquare meters of residential housing and over 36,000 residential units inRussia, including over 1.2 million square meters and over 17,000 residentialunits in 2006 alone. Group Financial Summary Revenue for 2006 rose by 90% and equalled US$ 1,546 million, while EBITDA for2006 amounted to US$ 486 million. Net profit was US$ 298 million in 2006compared to US$ 20 million in 2005. According to CBRE, an independent appraiser, the combined market value of theGroup's properties valued as of January 1, 2007 was $8.8 billion. This information is provided by RNS The company news service from the London Stock Exchange