LSR Group, one of the leading real estate developers and building materials producers in Russia (LSE: LSRG, MICEX, RTS: LSRG), completed the acquisition of 97 percent of the share capital of OJSC Obukhiv Porous Concrete Plant, the largest aerated concrete producer in Ukraine. The plant will form part of Aeroc International AS, the aerated concrete subholding company of LSR Group. The transaction value is RUB 1,175 million (or approx. USD 45 million at the exchange rate of 06 October 2008). The acquisition was approved by the Board of Directors of LSR Group in February 2008.

Notes to Editors:

OJSC Obukhiv Porous Concrete Plant is the leader in the Ukrainian aerated concrete market and the key supplier in the Kiev region today. The plant is located in the city of Obukhiv, 40 km away from Kiev, the capital of Ukraine. In 2007, the output and the sales of the plant were 150,000 cub.m. According to the All-Ukrainian Union of Building Materials and Products Manufacturers, the Obukhiv Plant currently has an 18 percent share of the total Ukrainian aerated concrete market. In the Kiev region, the Obukhiv Plant has more than a 50% share of today’s market of aerated concrete.

Aeroc International AS, the aerated concrete subholding company of LSR Group, is the leading aerated concrete producer in Northeast Europe. The company uses a single AEROC trademark in all of its markets – light as air, hard as rock. Three modern plants operate in St. Petersburg (Russia), Estonia and Latvia. In Ukraine, in addition to the acquisition of the Obukhiv Plant, another advanced plant is under construction with an annual capacity of 400,000 cub.m to be put into service in mid-October 2008.

OJSC LSR Group is a diversified construction 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. LSR Group employs around 18,000 people.

In 2007, the sales revenues of LSR Group (according to the IFRS-based financial statements) were US$ 1,403 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.

LSR Group has two credit ratings: B1; outlook — Stable, assigned by Moody’s Investors Service, and B+; outlook — Stable, assigned by Fitch Ratings. 

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

For more details please contact:

Press Service, LSR Group
+7 (812) 314-1044
press@lsrgroup.ru
www.lsrgroup.ru