4 Winds successfully refinanced

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION

IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

4 Winds successfully refinanced

London, 16 August 2011 - AFI Development ("AFI Development" or "the Company") today announces that, together with its partner, ZAO Snegiri Development, it has successfully refinanced the existing loan facility at its 4 Winds project with Nordea Bank. Under the refinancing terms, the existing MDM Bank credit line of US$ 143 million is refinanced with a US$ 170 million facility, at a substantially lower interest rate for the whole facility, compared to the current 10.5% rate at MDM bank. The deal will strengthen the Company cash flows from this project and improve its equity position. The transaction demonstrates the growing confidence of the international finance community in Russian real estate and proves the Company's ability to achieve the best possible financing terms for its projects.  

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For further information, please contact:

AFI Development

Alexander Adadurov +7 495 796 9988

Citigate Dewe Rogerson, London+44 20 7638 9571

David Westover

Sean Bride

About AFI Development

AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd.

AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction, and quality and customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets in Moscow, the Moscow Region, and other major cities in Russia and the CIS. The Company's existing portfolio of 30 development projects comprises commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighborhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.