LSR Group Executes Put Option on the 3rd Bond Issue

On 16 July, LSR Group executed the first stage* of put option on its third domestic bond issue of Series 02. LSR-Invest LLC, a 100 percent subsidiary of OJSC LSR Group and a formal issuer of this series of bonds, bought back the issue after the end of the fourth coupon period. A total of  2,967,858  bonds with a nominal value of RUB 1,000 each were bought back at the request of bondholders

In addition, the company made the fourth coupon payment of RUB 123,670,800 in full volume.
It is the third bond issue of LSR Group that was placed in July 2007 in the amount of RUB 3 billion. A total of 3 million bonds were issued, and at the time of the first stage of put option there were 2,970,000 bonds being traded in the market.

Elena Tumanova, Chief Financial Officer of LSR Group commented:
“We adequately assessed the current situation in the debt market and were prepared well in advance that the put option for the whole amount of the bond could be executed. Moreover, our financial plan from the very beginning provided for the execution of the put options for all our outstanding bond issues. This approach helps us to prepare the refinancing sources far in advance.
We are convinced that a stable and reliable company should not allow the default on its liabilities. It is a matter of our business reputation that is of great importance for us.”

*In accordance with the prospectus the put option is exercisable in two stages:
First stage –  16 July – for bondholders who applied from 7 to 13 July
Second stage – 27 July – for bondholders who applied from 13 to 16 July.

Note to  Editors:
OJSC LSR Group  is a real estate and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate. 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.
In 2007, the sales revenues of LSR Group (according to the IFRS-based financial statements) were RUB 35,858 million, in 2008 – RUB 49,813 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.
In 2007, LSR Group was awarded ‘The Company of the Year’ National Award in the ‘Construction’ category.

For more details please contact:
LSR Group Press Service
Tel.: +7 812 314 10 44
E-mail: press@lsrgroup.ru
www.lsrgroup.ru