LSR Group Awarded the 2007 Company of the Year National Business Award

On December 4, the winners in key nominations of the leading Business National Award ‘2007 Company of the Year’ were given awards at Gostiny Dvor, Moscow. LSR Group was recognized as the Award winner in nomination "Construction." Among the companies also considered in the nomination were Don-Stroi and PIK.

The CEO of LSR Group, Igor Levit commented on the event as follows: "I’m proud that LSR Group has received the most prestigious business award in Russia. It is a well-deserved award for our company, we have really done quite a lot this year launching several construction projects such as cement and brick plants in the Leningrad Region and an aerated concrete plant in Ukraine. We have also started up two new concrete plants in Moscow and one concrete plant in St. Petersburg, made operational a new crushed granite plant, and completed a business centre that won first place in nomination "Class A Business Centre — St. Petersburg" in Commercial Real Estate Federal Awards 2007. Certainly, it’s not easy to obtain such a high award but it’ll be even more difficult to retain our top position and to keep growing at the same rate. And I believe this should be our main target for the future."

For reference:

The Company of the Year National Award originated during the late 1990s and has proved to be a public institution that does not only focus on the success stories of the best companies but also develops a new image of Russian business and promotes new practices of business ethics in this country. For the first time the Company of the Year award was bestowed in 1999. From the very beginning, the Award Expert Board included investment analysts, consulting company executives and leading economic journalists. The growth rate was the key indicator used for selecting the winners in 1999. The winners’ list included primarily the companies that were more successful and quick to recover from the financial crisis. From 2002, the Company of the Year award has been awarded under the auspices of the RF Ministry of Economic Development and Trade, and the winners have been given the status of a prioritized company for implementing investment projects. In 2006, for the first time a regional round was held in the framework of the contest inviting companies operating in one or more federal districts. The key purpose of running the contest in the regions is promoting the activities of the companies operating in the domestic market as well as increasing the investment attractiveness of the regions and developing the Russian business community.

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 residential property built after designs made by leading domestic and foreign architects. LSR Group has enterprises and offices in St. Petersburg, Moscow, a number of cities in the Leningrad Region, in Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs nearly 15,000 people. In 2004, 2005 and 2006 the revenues of LSR Group were RUB 7,530.9 mln, RUB 13,085.5 mln, and RUB 21,110.8 mln respectively. For the six months of 2007 the Group’s revenues amounted to RUB 16,062.0 mln compared to RUB 9,336.4 mln for the same period last year. In July 2007, Moody’s Investors Service assigned a B1 rating to LSR Group; outlook — stable.

For more details please contact:

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