Completion of acquisition

LSR Group completes acquisition of crushed granite plant

OJSC Granit-Kuznechnoye (a subsidiary of LSR Group) has acquired 100% of OOO 436 KNI - a crushed granite producing plant. This acquisition makes LSR Group No. 1 company in Russia in gneiss granite reserves. The total value of transaction is around RUB 960 million.

Together with OOO 436 KNI, LSR Group obtained a license to use subsurface resources of Prudy-Mokhovoye-Yasninskoye gneiss granite deposit (Viborgsky district, the Leningrad region) with approximately 84 million cub.m of proven reserves. The deposit has two quarries. Characteristics of the rock mass make it suitable for processing crushed granite used in all types of construction.

The plant is located in the Vybogrsky district of the Leningrad region, 190 km away from St. Petersburg and around 40 km north from Vyborg, close to Prudy railway station. Its annual production capacity is 1.1 million cub. m. Therefore, after the acquisition, the crushed granite production facilities of LSR Group in the Leningrad region include 9 plants processing around 7 million cub. m per year and 6 deposits in the Viborgsky and Priozyorskydistricts.

Note 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, Yekaterinburg and Ukraine.In 2010, the sales revenues of LSR Group were RUB 49,950 million (IFRS).LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.

OJSC Granit-Kuznechnoye - one of the largest crushed granite producers in Russia Today, after acquisition of OOO 436 KNI, the company has six deposits in the Priozyorsky and Vyborgsky districts of the Leningrad region. Nine plants produce crushed granite, six of them are foreign-made. Its production capacities amount to around 7 million cub. m per year.

For more details please contact:LSR Group Press ServiceTel.: +7 812 314 10 44Fax: +7 812 458 83 72E-mail: [email protected]www.lsrgroup.ru