BoD decides on share issue, change in shareholding

Today, on 5 March 2010, the Board of Directors of OJSC LSR Group  (hereinafter the “Company”) has taken the decision to increase the Company’s share capital through placement of new ordinary registered book-entry shares by open subscription and approved the Decision on Additional Share Issue and Prospectus. The total number of shares to be placed is 16,042,508 shares, with a par value of RUR 0.25 each. 

The placing price of the new shares, including the placing price for pre-emptive rights holders, will be defined by decision of the Company’s Board of Directors after the state registration of the additional issue and before the date of notification of pre-emptive rights holders of the option to exercise their pre-emptive right to buy new shares as provided for in Articles 40 and 41 of the Federal Law on Joint Stock Companies. The placing price of the new shares for pre-emptive rights holders if they exercise their pre-emptive rights will be 10 percent lower than for other persons, but not lower than the par value of the new shares being placed. The new shares are to be paid for on a non-cash basis in roubles and/or US dollars.
 
The placement commencement date will be the date of notification of shareholders of the opportunity to exercise their pre-emptive right to buy the new shares being placed, but not earlier than two weeks after the publication of the notice of state registration of the additional share issue in the RBC Daily newspaper.  
 
The placement completion date is defined as the earliest of the following dates:
а) The sixth banking day from the publication date in the Interfax newswire and also on the Company’s Internet page (http://www.lsrgroup.ru/investors) of an invitation intended for an unlimited range of persons to make offers to buy the new shares; and
b) The date of placing of the last new share issued. However, the new share placement period  will not exceed one year from the date of state registration of the additional share issue.

 Date of compilation of the list of shareholders who will have  pre-emptive rights to buy the new shares - 5 March 2010.

Also today, OJSC LSR Group has received notifications from two of its shareholders, Andrey Molchanov and Streetlink Limited, regarding a change in their shareholdings in the Company. According to the notifications, Andrey Molchanov transferred 53.39 percent of shares in the Company to Streetlink Limited, which is 100% owned by the former. 
 
Andrey Molchanov’s shareholdings before change: 63.39%
Andrey Molchanov’s shareholdings after change: 10%

Streetlink Limited’s shareholdings before change: 4.99%
Streetlink Limited’s shareholdings after change: 58.38%
 
Note to editors:
OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, real estate development and panel construction.
LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.
In 2008, the sales revenues of LSR Group were RUR 49,813m (IFRS).

For more details please contact:
LSR Group Press Service
Tel.: +7 812 314 10 44
Fax: +7 812 458 83 72
E-mail: press@lsrgroup.ru
www.lsrgroup.ru

Legal disclaimer:
Neither these materials nor any copy of it may be taken or transmitted into the United States, Australia, Canada or Japan.  These materials do not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor. The offer and the distribution of these materials and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction.  Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
These materials are not an offer for sale of any securities in the United States.  Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933.  The Company has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.
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