PIK.L Regulatory News (PIK)

PIK GROUP ("PIK" or "Group")

PIK Group launches a new modernized building series P-3MK Flagman for its residential projects

Moscow, November 21, 2011:  PIK Group, a leading Russian real estate developer focusing on large-scale residential projects within the Moscow Metropolitan Area and selected Russian regions, has launched a new modernized residential building series called P-3MK Flagman.

The new design is for a modern, 18-storeyed residential building which provides enhanced comfort for PIK's customers. Among the series innovations is a new planning option that allows a developer to create different types of apartments from a set of modules. Interior finishing has also been improved with more space now available for built-in furniture and kitchen appliances. All apartments have separate sanitary conveniences and enlarged bath modules.

The Flagman series also uses new energy saving exterior wall panels, window units and engineering systems, thus helping to reduce customers' maintenance fees. The buildings have better glazing on the balconies, reducing thermal losses and improving noise insulation. The German KBE window units retain up to 90% of thermal waves, helping to reduce the cost of heating and air conditioning. Each apartment has adjustable radiators helping to reduce energy bills by 20-30%, as well as individual mains supply meters and water flow meters helping reduce consumption of cold water by approximately 30% and hot water by 23%. A modern lighting system for common zones uses energy saving lamps with movement detecting sensors thus 3-4 times reducing the electricity consumption.

Flagman buildings also introduce a new concept for the building entrance. Finishing has been improved and building lobbies, including the elevator halls, are now located on one level so disabled people will no longer need to use stair lifts. The new stairs and elevator halls have been enlarged for better emergency access and the stairways have new safe zones for disabled people.

The P-3MK Flagman panel building series is manufactured by the DSK-3 plant in Moscow, an integrated part of PIK Group. Total estimated capital expenditure on the new design is around 380 million rubles.

Pavel Poselenov, Chief Executive Officer of PIK Group commented: "Our strategy is to create comfortable and attractive environments in all our residential districts. To achieve this goal we constantly develop our technologies, paying attention to every small detail of our business. We do believe that affordable housing and quality can and should go hand in hand. We have started construction of our first P-3MK Flagman building in Moscow region town Scherbinka, and we hope that customers will like it".

Konstantin Kuznetsov, Vice President for Industry and Construction of PIK Group commented: "We are proud to present a new level of quality in the affordable housing segment. The P-3MK Flagman series is an innovative project from the point of view of its architectural concept as well as its functionality and safety features. This new design shows how PIK constantly improves its production technologies to lead the market in modern affordable housing".

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About PIK-Group

PIK-Group is a leading Russian real estate developer, focusing on large-scale residential projects within the Moscow Metropolitan Area and selected Russian regions. Since its foundation in 1994, PIK-Group has become a market leader in mass market residential property sector completing over 180 000 apartments of affordable housing across the country. The Group has a substantial diversified land bank of net selling area over 10 million square meters and a dedicated professional team with over 11,000 employees. Given its brand recognition and the scale of its operations, in 2009 the Russian Government included PIK on the list of the nation's strategically important companies. For more information please visit: http://www.pik-group.com

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