Full Year 2009 Financial Results

NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,

AUSTRALIA, CANADA OR JAPAN

For immediate release

In the year ended 31 December 2009 LSR Group generated RUR 51,024m of revenue and 14,732m of EBITDA

Key financial highlights:

·; Revenue increased by 2% to RUR 51,024m

·; EBITDA increased by 12% to RUR 14,732m

·; EBITDA margin grew from 26% to 29%

·; Normalised operating profit increased by 11% to RUR 12,327m

·; Normalised net profit went up by 15% to RUR 6,071m

·; Earnings per ordinary share went up by 158% to 50 RUR

Igor Levit, CEO of LSR Group commented:

"We demonstrated solid financial results in 2009 taking into account the market challenges our industry passed through. We maintained our leading market position, secured governmental orders for social housing, refinanced our debt, implemented cost reduction measures and continued the construction of our cement plant.

Today we see the signs of recovery of real estate market and our main task now is to ensure that the company will fully capture the opportunities of the market recovery. Currently we are implementing our "Lead The Growth" program aimed at ensuring the profitable growth of our business.

We believe that our company will be a leader in moving towards future strength and performance".

Financial Results

In 2009, our revenue increased by 2% to RUR 51,024m, EBITDA increased by 12% to RUR 14,732m, and EBITDA margin grew from 26% to 29%.

In 2009 approximately 70% of our revenue and 84% of our EBITDA were generated by our Real Estate Development, Construction and Commercial Real Estate Division, and the share of our Building Materials, Aggregates and Construction Services Division was approximately 30% of the total revenues and 16% of the Group's EBITDA.

Full version of the press-release is available in pdf-file

http://www.rns-pdf.londonstockexchange.com/rns/3760K_-2010-4-19.pdf 

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 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 51,024m (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.

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Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.

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