LSR Group indicated that in the First Half of 2008 Revenues grew by approximately 40% and EBITDA grew by Over 60%

LSR Group, one of the leading real estate developers and building materials producers in Russia (LSE: LSRG, MICEX, RTS: LSRG), today announced that according to preliminary unaudited IFRS accounts, the revenues of LSR Group in roubles grew by approximately 40% compared to the first half of 2007, and EBITDA grew by more than 60%.*

Elena Tumanova, CFO and a member of the Board of Directors of LSR Group said:

“We are pleased with the positive trend in the financial performance of the company linked to the growth of operational results of all of LSR’s divisions including the increased sales of building materials and the completion of several real estate development projects, as well as high market demand and a favourable situation in the Russian construction market as a whole, which, in its turn, made it possible for LSR Group to raise prices for its key products.”

*The consolidated IFRS financial statements for the first half of 2008 are planned to be published in October 2008.

Notes to Editors:

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 Oblast, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs over 15,000 people.

In 2005 and 2006, the revenues of LSR Group (according to IFRS statements) were US$ 463 million and US$ 777 million respectively. In 2007, the revenues amounted to US$ 1,403 million.

LSR Group has a B1 rating  from Moody’s Investors Service (outlook — Stable) assigned in July 2007 and confirmed on 30 May 2008 and a B+ rating by Fitch Ratings (outlook — Stable) assigned on 30 May 2008. The Group’s shares are listed on MICEX and RTS and on the London Stock Exchange in the form of GDRs since its IPO in November 2007. 

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