2010 Trading Update

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PIK GROUP ("PIK" or "the Company")

2010 Trading update

PIK DELIVERS 739,000 SQM OF TOTAL HOUSING IN 2010

(LONDON, February 16 2011) - PIK (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to announce its housing completion figures for the year ended December 31, 2010.

Headline numbers are provided in the table below:

Note: Total housing completion figures include city share, share of third party co-investors, construction services provided and PIK's own share.

Source: Management accounts.

The decrease in total housing completions in 2010 was due to the lack of construction activity in 2009, when the Group faced liquidity constraints. The Group became active again starting from early 2010 and new building launches drove a significant recovery in pre-sales; as previously reported, new sales contracts to customers surged by 218.6% to 392,000 square meters in 2010.

This more confident market led us to accelerate the pace of construction in 3Q2010 and onwards through new project launches. Accordingly, the Group launched 25 new projects in 2H10 and in January 2011 added an additional three project launches. Since the average construction period is over a year, completion of these launches will be reported in 2011 and onwards.

The increase in construction services activities was driven by the completion of 161,000 square meters of housing (16 buildings in total), all for the needs of the Ministry of Defense in the city of Podolsk (Moscow region).

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