AFI update on Mall of Russia

21 December 2010

AFI UPDATE ON MALL OF RUSSIA

AFI Development PLC (the "Company"), a leading real estate company focused on developing property in Russia and the CIS, today provides an update on the progress of its major project the Mall of Russia.

Construction work is now complete at the Company's major retail project at the Moscow-City development. Formerly known as Mall of Russia while under construction, the project is now being launched as AFIMALL City (the "Mall"). All utilities are connected, including electricity and heating, and the area surrounding the Mall is this week subject to final clearance and cleaning.

The shopping area of the Mall is currently over 70% let and is on track to achieve a target of being 75% let by the end of December. Tenants are currently accelerating their store fit-outs. The Company filed an application with the Moscow authorities for permission to open the facility, upon receipt of which the Mall will be ready to open its doors to first customers. The Company expects this to happen by the end of January 2011.

- ENDS -

For further information, please contact:

AFI Development

Stanislav Joukov

Natalia Ivanova +7 495 796 9988

Citigate Dewe Rogerson, London +44 20 7638 9571

David Westover

Sandra Novakov

Lucie Holloway

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. Since 1934 Africa Israel Investment Ltd. has been an international investment holding with a unique 70-year experience in real estate development all over the world, including Europe and the United States.

AFI Development is listed on the Main Market of the London Stock Exchange and delivers 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 Regions and other major Russian cities. With an existing portfolio of 29 development projects, the Company has an unrivalled track record of consistent growth over recent years. Comprising 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 growth.