Additional Share Issue Results

LSR Group announces state registration of the report on additional share issue results

Today, on 18 August 2010, FFMS of Russia notified OJSC LSR Group (LSE: LSRG; MICEX, RTS: LSRG) of state registration of the report on additional share issue results.

Thus, OJSC LSR Group has successfully completed additional ordinary registered book-entry share placement with 9,366,383 shares actually placed.

As a result of additional share issue, registered capital of OJSC LSR Group amounts to RUB 25,757,553.75, divided into 103,030,215 ordinary shares.

Please notethat placing of the additionally issued ordinary registered book-entry shares of OJSC LSR Group is aimed at reinvestment of the proceeds, received from the Secondary Public Offering, announced this spring by LSR Group, into the company.

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 production of building materials, real estate development and panel construction. LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine. In 2009, the sales revenues of LSR Group were RUR 51,024 (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.

For more details please contact: LSR Group Press ServiceTel.: +7 812 314 10 44 Fax: +7 812 458 83 72E-mail: [email protected]www.lsrgroup.ru