OOO Gatchinskiy DSK the decision to be renamed.

The name change was caused by a significant expansion of the company's market opportunities. Currently it is a full-fledged real estate development company offering residential housing to a wide spectrum of consumers with different levels of income. It includes residential complexes of both economy and business class with areas ranging from 100,000 to 400,000 sq. m. Today it is not only the traditional «Gatchina» brand panel houses but also brick-monolithic and classical brick houses as well as Series 137 panel houses. «The name „City House Building Company“ is most relevant given the company marketing objectives and profile, — says Yury Belyshev, the General Director of the Company. — Our target is to arrive within the next three years at the stable metrics of commissioning 200,000 sq. m per annum which means that every year 4,000 families will be moving to the houses built by us. This is great responsibility that demands we should work as one team and focus on the goals set forth.» In 2001, the leaders of LSR Group took the decision to enter the market of economy class housing construction. For that purpose OOO Gatchinskiy DSK was established which at that time borrowed its name from ZAO Gatchinskiy DSK also forming part of LSR Group. It served to create the necessary level of prospective housing buyers' trust to the new seller. For the next five years the company has been developing very fast: 18 houses with 237,000 sq. m of total living space have been commissioned i.e. over 4,000 apartments. Over the past years the production volume has grown by 12 times — from 180,000 sq. m in 2003 to 2.2 mln. sq. m by mid-2007. The most well known residential complexes implemented by OOO GDSK are Komendantskaya Square House, Pulkovsky Posad, Fortuna, Antey and Dolgoozerny. Their total area exceeds 0.5 mln. sq. m. Today the company has simply «outgrown» its original name which had to be changed to clearly position it in the market as a real estate developer.

For reference: OOO City House Building Company (formerly OOO Gatchinskiy DSK) was founded in 2001. The company operations include provision of investments and construction of modern residential complexes of economy class acting as the customer, investor and developer. It forms part of LSR Group. Last year OOO GDSK obtained a permission to commission 7 houses of 109,090 sq. m total area which corresponds to 1,813 apartments of 101,080 sq. m and 7,800 sq. m of commercial space.

For reference.

LSR Group is a diversified holding company, a leader of the Russian construction industry. Its core business areas are building materials manufacturing, construction and real estate development. The Group includes enterprises for aggregate extraction and processing, building materials manufacturing and transportation, 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 comprises over 20 business units having a total of approx. 14,000 employees.

Enterprises of LSR Group: No.1 in Russia by ceramic brick production

No.1 in Russia and Northern Europe by aerated concrete production

No.1 in Russia by construction aggregates production

No.1 in Russia by ready-mixed concrete production

No.1 in St. Petersburg by elite real estate development

No.1 in St. Petersburg by reinforced concrete structures production

No.1 in St. Petersburg by large-panel housing construction.