1Q11 Trading Update

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PIK GROUP ("The Group" or "PIK")

1Q11 TRADING UPDATE

PIK STARTS THE YEAR WITH STRONG CASH COLLECTIONS

(LONDON, April 20 2011) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to publish today a trading update for 3 three months ended March 31 2011 based upon management accounts.

Cash collections summary

Note: (*) excluding offsets with suppliers

Source: Management accounts

Quarterly cash collections summary in 2010

Note: (*) excluding offsets with suppliers

Source: Management accounts

Strong cash collections were achieved due to growing customer interest in new projects launched in the final quarter of 2010, during which thirteen new properties were put on sale (FY10: 25 properties were put on sale). During the first quarter of 2011, eleven new properties have been put on sale, as shown below.

Pre-sales launches summary (2011 YTD)(1)

Note: In Rostov-on-Don, PIK launched (pre)-sales on a project reactivated early 2011

Source: Management accounts

New sales contracts to retail customers (contracted retail volume)

Note: (*) equivalent to the aggregated amount of apartments, ground floors and parking lots

Source: Management accounts

New sales contracts to retail customers summary in 2010

Note: (*) total new sales in 2010 including wholesales contracts amounted to 392 thousand sqm

Source: Management accounts

The first quarter of the year traditionally has lower seasonal activity, however, despite this fact, new sales to retail customers were significantly higher, surging by 87.9% year-on-year to RUB5.5billion in Q1 2011.

This is another sign of the residential mass market recovery in Moscow metropolitan area ('MMA'), which contributed around 90% to the Group's 1Q11 sales numbers.

In addition to the above factors, mortgage affordability continued increasing with the introduction of various mortgage programs for properties under construction. Since 2011, PIK sees increasing interest from commercial banks to provide mortgages to customers on PIK's properties. The share of mortgage funded sales surged to an average of approx 12.4% of total sales in 1Q11 vs. 3.1% in 1Q10, evidencing the growing affordability of mortgages. In March 2011 alone, share of mortgage funded sales were at 18.2% of total sales.

Average unit sales to retail customers in 1Q11 reached 21.6 units per business days vs. 14.0 units in 1Q10.

PIK believes that this recovering trend will continue going forward. In terms of total new sales to all type of customers PIK aims to reach the 2008 level of 520,000 sqm.

Note: (1) In our press-release, we reported upon 1Q11 new sales contracts to customers (RUB5,502million), which is not equivalent to 1Q11 cash collections from retail real estate sales activities (RUB4,927million) given the fact that cash collections represents cash received by the Group while new sales contracts mean signed agreements with individuals. In line with PIK's standard sales practice, individuals usually pay 100% upfront within 5 working days for residential real estate or they are offered to pay in installments within a certain period (e.g. up to 6 months for apartments);

(2) In line with PIK's accounting standards, these cash collections will be recognized as sales revenue once the residential real estate properties have been completed and third party acceptance acts (formal building certification provided by authorities) are received upon the completed units.

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