Changes in the senior management team

AFI DEVELOPMENT PLC

CHANGES IN THE SENIOR MANAGEMENT TEAM

LONDON, July 27, 2010 - AFI Development PLC, a leading real estate company focused on developing property in Russia and the CIS, announces that Avi Barzilay will be stepping down as Chief Financial Officer of AFI Development to take the position of Deputy CEO of Africa Israel Properties effective from today. He will remain on the board of AFI Development as a non-executive director.

Evgeny Luneev, who was appointed Chief Financial Officer of AFI Rus LLC in May 2010, will assume Mr. Barzilay's responsibilities within AFI Development.

Prior to joining AFI Development, Mr. Luneev served as Chief Financial Officer of PIK Group and previously held senior positions with the Sputnik Group investment bank and CJSC National Timber Company. Mr. Luneev graduated from the Moscow State Institute of International Relations with a degree in international economic relations in 1997 and holds a Certified Public Accountant Certificate in the US. He also graduated from the Stanford Executive Program at Stanford University in 2009.

Commenting on the announcement, Lev Leviev, Chairman of the Board said:

"On behalf of the Board, I would like to thank Mr. Barzilay for his many years of dedicated service to AFI Development as Chief Financial Officer which included leading the Company through its IPO and Premium Listing on the London Stock Exchange, and wish him success in his new position as Deputy CEO of Africa Israel Properties. We are especially pleased that, as a Board director, Mr. Barzilay will continue to support AFI Development going forward. At the same time, I am delighted that Mr. Luneev has agreed to take on a greater role within the Group. He is bringing a wealth of financial and management experience at a critical stage in the evolution of AFI Development."

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For further information, please contact:

AFI Development

Igor Solomon +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. 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.

In May of 2007 AFI Development was successfully admitted to the Main Market of the London Stock Exchange. Through its IPO the company raised a total of approximately US$1.4 billion. In addition to this listing of Global Depositary Receipts, each of which represents one A ordinary share, 523,847,027 of B ordinary shares in the Company were issued and admitted to a premium listing on the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange on 5 July 2010.

The Company 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 such as St. Petersburg, Volgograd, Kislovodsk. AFI Development has strong track record of consistent growth over recent years and today the Company's existing portfolio has 30 development projects in 15 locations throughout Russia and Ukraine. 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 what the Company believes to be a strong base for future growth.