Streetlink Ltd Becomes a New Shareholder of OJSC LSR Group

OJSC LSR Group announces a formal change in its share capital structure. Streetlink Ltd, a company 100% of the shares of which are held by the main shareholder of LSR Group, has become a new shareholder of OJSC LSR Group. Notification to this effect was received from Streetlink Ltd by OJSC LSR Group on 6 June 2008.

Full business name of the new shareholder of OJSC LSR Group: STREETLINK LIMITED.

Percentage of ordinary shares in OJSC LSR Group held by the above entity before the change: 0%

Percentage of ordinary shares in OJSC LSR Group held by the above entity after the change: 6.499%

Rationale for the change in the percentage of ordinary shares held by the above entity in OJSC LSR Group: acquisition of the issuer's ordinary shares by the entity.

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 $ 463 million and $ 777 million respectively. In 2007, the revenues amounted to $ 1,403 million.

In November 2007, OJSC LSR Group implemented an IPO, and now its GDRs are listed on the London Stock Exchange, and the shares - on MICEX and RTS.

LSR Group has a B1 rating, outlook - stable assigned by Moody's Investors Service (assigned in July 2007 and confirmed on May 30, 2008), and a B+ rating, outlook - stable assigned by Fitch Ratings (assigned on May 30, 2008).

In 2007, LSR Group was bestowed a National Award in the field of business as 'The Company of the Year' in the 'Construction' category.

For more details please contact:

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