Cooperation agreement

LSR Group and Murmansk Region Government sign cooperation agreement

Under a visit of Igor Levit, Chairman of the Board of Directors of LSR Group and Alexander Vakhmistrov, President and Chairman of the Executive Board of LSR Group, to the Murmansk region, a cooperation agreement between Murmansk Region Government and OJSC LSR Group was signed.

The document was signed for the Murmansk region Government by Dmitry Dmitrienko, Governor of the Murmansk region and for OJSC LSR Group by Alexander Vakhmistrov, President of OJSC LSR Group.

The purpose of the Agreement is to establish strategic partnership, develop long-term, effective and mutually beneficial cooperation of the parties, aimed at better interaction in the field of investment along with efficient use of the Murmansk region investment potential.

Under the Agreement, LSR Group proposes to take part in regional investment and social projects as well as in strategic national projects to be implemented in the Murmansk region. Besides, the company plans to develop investment projects on creation of construction industry enterprises and participate in their implementation.

For its part, the Murmansk Region Government intends to work out necessary conditions and arrangements for mutual projects of the Government and OJSC LSR Group, and also consider cooperation proposals of LSR Group, and a possibility for the company to participate in a number of federal and regional social investment projects and programs, implemented in the Murmansk region and supported by the Government

In addition, the parties determined that implementation of the programs and projects will be based on individual agreements and competition in conformity with law of the Russian Federation and the Constitution of the Murmansk region.

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 2009, the sales revenues of LSR Group were RUR 51,024 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.

For more details 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