AFIMALL CITY: UPDATE ON DEVELOPMENT

AFIMALL CITY: UPDATE ON DEVELOPMENT

15 February 2011

AFI Development plc ("AFI Development" or the "Company") today provides an update on "AFIMALL City", its new shopping centre in Moscow.

Project Development

Further to the announcement of January 24, 2011 and in accordance with the planned development schedule, the final works requested by the municipal authorities regarding safety and fire hazards are being carried out in order to receive authorisation to proceed with a "soft opening" of the Mall to the general public. The Company expects authorisation to be received for the "soft opening" by the beginning of March 2011.

During this process, fit-out works for the retail units are proceeding on schedule so that 160 stores will be open during the course of March.

Currently 74% of the total sales area has been leased, representing a contracted annual income equivalent to US$81 million. The Company expects at least 80% of the retail area to have opened within 3 months from the "soft opening" of the Mall. The "Grand Opening" date for AFIMALL City is expected to be at the beginning of May 2011.

City share purchase update

In accordance with the Decree issued by the Moscow City Government in 2010, the Company is in the final stages of negotiation with the municipal authorities to purchase the City's 25% share in the development together with the partially completed parking area for 2,700 cars.

So as to ensure sufficient parking space will be available for customers of the Mall while the main parking area is being completed, the Company has ensured that the required amount of parking space has been rented from the owners of adjacent buildings.

For further information, please contact:

AFI Development

Stanislav Joukov +7 495 796 9988

Natalia Ivanova

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.

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 29 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.