Formal Notice

Today, on 12 May 2010, OJSC LSR Group (LSE: LSRG; MICEX, RTS: LSRG) has received notifications from Deutsche Bank Trust Company Americas (DBTCA)*, regarding a change in its shareholding of ordinary shares in the Company:

1. On 5 May 2010, DBTCA changed its shareholding of ordinary shares in the Company from 14.545% to 9.555%

2. On 6 May 2010, DBTCA changed its shareholding of ordinary shares in the Company from 9.555% to 19.555%

3. On 7 May 2010, DBTCA changed its shareholding of ordinary shares in the Company from 19.555% to 24.629%.

* Deutsche Bank Trust Company Americas (DBTCA) acts as a Depositary Bank for Global Depositary Receipts (GDRs) of OJSC LSR Group under deposit agreements relating to each of the Rule 144A and Regulation S.

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 (IFRS).

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