Bond placement

LSR Group announces bond placement worth RUB 3bn

OJSC LSR Group (LSE: LSRG; MICEX-RTS: LSRG), one of the leading real estate developers and building materials producers in Russia, announces September, 14, 2012 as the placement date of its Series-03 interest-bearing non-convertible bonds with mandatory safekeeping worth RUB 3 billion.

The total size of the issue is 3,000,000 (three million) bonds with a nominal value of RUB 1,000 each.

Bond information:Issuer: OJSC LSR GroupSeries: 03Identification number: 4-03-55234-E as of 2 November 2011 (assigned by the FFMS of Russia)Placement date: 14 September 2012Duration: 1820 days starting from the placement dateInterest payment periods: 10 interest payment periods of 182 days eachLead manager: URALSIB Financial Corporation

The placement will be conducted in the form of tender to determine the first coupon rate. Pre-emptive rights to purchase the securities are not provided.

The decision to place bonds was approved by the Board of Directors of LSR Group. The proceeds from the placement will be used for refinancing and financing of the company's investment projects.

Notes 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 and Yekaterinburg.As of 31 December 2011 (according to Cushman & Wakefield Russia), the net sellable area of the projects in LSR Group's real estate portfolio is equal to 8.4m m2 with the market value of RUB 124bn.In 2011, the sales revenue of LSR Group were RUB 51,910m (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX-RTS.

For more information please contact:

LSR Group Press Service

 Tel.: +7 812 314 10 44

 Fax: +7 812 458 83 72

 E-mail: [email protected] 

www.lsrgroup.ru