Admission to Trading

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE RUSSIAN FEDERATION

ETALON GROUP LIMITED

("Etalon Group" or the "Company")

ADMISSION TO TRADING ON THE LONDON STOCK EXCHANGE

20 April 2011. Further to its announcement of 15 April 2011, Etalon Group, one of Russia's largest residential real estate developers with a 23 year track record, announces that 94,464,285 of its ordinary shares in the form of global depository receipts ("GDR") have today been admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's Main Market under the ticker ETLN. One GDR represents an interest in one Ordinary Share of the Company.

Further information about Etalon Group is available on its website at www.etalongroup.com.

ENQUIRIES:

Financial Dynamics - Financial Public Relations Adviser

ABOUT ETALON GROUP

§ Etalon Group is one of Russia's largest residential real estate developers. Since its original inception in 1987, the Company has built a leading position in the St. Petersburg Metropolitan Area, where it has recorded an 11% average annual market share of total residential completions in the private sector (excluding individual constructions) between 2000 and 2010. It also has a growing presence in the Moscow Metropolitan Area market.

§ Etalon Group has a strong portfolio focused on large-scale residential complexes, targeting the lower middle class and upper economy class price segments, providing high quality living at affordable prices. The Company primarily focuses on the development of high-rise residential complexes constructed using poured concrete technology. The defining feature of Etalon Group's residential developments is the construction of entire estates, often integrated with social infrastructure, including kindergartens, schools and hospitals.

§ The Company's portfolio comprised 28 projects, as of 31 December 2010, with a total of 3.13 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. The Company's two largest projects by size are the 868,034 sqm NSA Emerald Hills development in the Moscow Metropolitan Area and the 601,758 sqm NSA Jubilee Estate development in the St Petersburg Metropolitan Area.

§ For the year ended December 31 2010, the Company recorded revenues of RUB 20.3 billion (USD 669 Million) and EBITDA of RUB 6.9 billion (USD 227 Million), with an EBITDA margin of 34%. For the years ended December 31, 2008 and 2009 revenues were RUB 14.3 billion (USD 574 million) and RUB 20.2 billion (USD 636 million), respectively. Over the same periods, the Company produced EBITDA of RUB 3.2 billion (USD 128 million) and RUB 7.6 billion (USD 239 million), as well as EBITDA margins of 22% and 38%, respectively.

§ Etalon Group is a vertically integrated development company, which operates selective businesses in areas critical to its core residential property development activities, including production of construction materials and tower crane operation. The Company also operates a nationwide marketing and sales network, which substantially expands its potential customer base.

§ The Company's strong and experienced management team, under Viacheslav Zarenkov, its founding shareholder and President of Etalon Group, has been fundamental to Etalon Group's success. The key members have served in their capacities since inception in 1987, and the average service of the members of the senior management team is over ten years.

This announcement is an advertisement and not a prospectus for the purposes of Directive 2003/71/EC (together with any applicable implementing measures in the relevant home member state under such Directive) (the "Prospectus Directive"), and investors should not subscribe for or purchase any GDRs referred to in this announcement except on the basis of information in the prospectus (the "Prospectus") published by Etalon Group Limited in connection with the Offering (as defined below) and Admission (as defined below).

In any member state of the European Economic Area that has implemented the Prospectus Directive this communication is only addressed to and directed at persons who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive ("Qualified Investors").

In addition, in the United Kingdom, this document is being distributed only to, and is directed only at, (i) Qualified Investors who are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i) and (ii) above together being referred to as "relevant persons"). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire any securities will be engaged in only with relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Persons distributing this document must satisfy themselves that it is lawful to do so.

Information contained in this document is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in Russia or to or for the benefit of any Russian person, and does not constitute an advertisement of any securities in Russia. This information must not be passed on to third parties or otherwise be made publicly available in Russia. The securities have not been and will not be registered in Russia or admitted to public placement and/or public circulation in Russia. The securities are not intended for "placement" or "circulation" in Russia except as permitted by Russian law.

These materials are not an offer for sale of securities or solicitation to purchase or subscribe for securities in the United States. The Securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the "Securities Act"). Such securities may not be sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the Securities Act. The Company (as defined below) does not intend to register any part of the offering in the United States or to conduct a public offering of such securities in the United States.

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth and strategies. Forward-looking statements speak only as of the date they are made.