Half Yearly Report

30 August 2011

Raven Russia Limited ("Raven Russia" or the "Company")

Results for the six months ended 30 June 2011

The Board of Raven Russia releases below the results for the six month ended 30 June 2011.

Highlights

- 188,000 sqm of new lettings since 31 December 2010

- 832,000 sqm (84%) of portfolio now let

- 27,000 sqm of PLAs and LOIs signed at today's date

- annualised consolidated NOI now $112 million

- increases to $115 million on conversion of PLA s and LOIs

- portfolio ERV of $129 million and portfolio ERV yield of 12%

- increases to $135 million on completion of Klimovsk phase 2

- profit before tax of $86 million for the period

- basic EPS of 14 cents

- cash balance at 30 June 2011 of $129 million and $115 million at today's date

- adjusted fully diluted NAV per share of 117 cents

- tender offer buy back of 1 in 46 shares at 58 pence proposed

- equivalent of 1.25 pence dividend

Richard Jewson, Chairman, said "The market in which we operate continues to improve and we look to the future with confidence."

Glyn Hirsch, CEO, said "Our focussed piece of the world, logistics warehousing in Russia, looks great. Growing economy, improving consumer markets, combined with a structural undersupply of space are excellent ingredients. There is no sign, yet, of a development boom whilst construction finance remains tight and the global players ignore Russia."

Enquiries

Raven Russia Limited Tel: + 44 (0) 1481 712955

Anton Bilton

Glyn Hirsch

Cardew Group Tel: + 44 (0) 207 930 0777

Tim Robertson

Alexandra Stoneham

Singer Capital Markets Limited Tel: +44 (0) 203 205 7500

Corporate Finance- James Maxwell

Sales - Alan Geeves / James Waterlow

Matrix Corporate Capital LLP Tel:+44(0) 203 2067000

Corporate Finance - Roger Clarke

Sales- Carl Gough

This announcement contains forward-looking statements that involve risk and uncertainties. The Group's actual results could differ materially from those estimated or anticipated in the forward-looking statements as a result of many factors. Information contained in this announcement relating to the Company should not be relied upon as a guide to future performance.

About Raven Russia

Raven Russia was founded in 2005 to invest in class A warehouse complexes in Russia and lease to Russian and International tenants. Its Ordinary Shares and Warrants are listed on the Main Market of the London Stock Exchange with a market capitalisation of approximately £260 million, operates out of offices in Guernsey, Moscow and Cyprus.

To date, completed a portfolio of circa 1 million square metres of Grade "A" warehouses in Moscow, St Petersburg, Rostov-on-Don and Novosibirsk. For further information visit the Company's website: www.ravenrussia.com

Chairman's Statement

Introduction

I am pleased to announce the Group's results for the six months ended 30 June 2011.

At today's date our annualised, consolidated net operating income ("NOI") is $112 million, increasing to $115 million including pre-let agreements ("PLAs") and letters of intent ("LOIs") and before cost of vacant space. This represents 188,000 square metres ("sqm") of signed leases in the year to date and a further 27,000 sqm of PLAs and LOIs.

Reported NOI was $37.4million for the period (30 June 2010: $27.1million). Profit before tax was $86.4 million (30 June 2010:$8.1 million), earnings per share were 14 cents (30 June 2010:1 cent), basic NAV per share was $1.26 (31 December 2010:$1.16) and adjusted, fully diluted NAV per share was $1.17 (31 December 2010: $1.05).

The external valuation carried out by Jones Lang Lasalle ("JLL") as at 30 June is reflected in the carrying value of our completed assets of $1,078 million, an increase of $103.8million since 31 December 2010. The portfolio has an estimated rental value ("ERV") of $129 million excluding our project at Klimovsk, which we expect to add a further $6 million to ERV making a total of $135 million.

Our period end cash balance was $129 million (31 December 2010: $108 million) with net debt of $363 million (31 December: $324 million).

We can continue our progressive policy of distributions to shareholders and propose a tender offer buy back with terms set out below.

I am pleased that our preference shares have now moved to The Official List alongside our ordinary shares and warrants. This can only help the profile of our maturing business.

As is evidenced by our results, the market in which we are operating is continuing to improve and we look forward to the future with confidence.

Results

In the six months to 30 June 2011 the company made a pre-tax profit of $86.4 million (30 June 2010: $8.1million) including revaluation gains of $103.8 million (30 June 2010: $31 million).

This equates to earnings per share of 14 cents (30 June 2010:1 cent) and EPRA loss per share of 3.5 cents (30 June 2010: loss of 4.6 cents).

NOI for the six months of $37.4 million (30 June 2010: $27.1 million) is after absorbing operating costs on vacant space of $8 million in the period (30 June 2010: $11.5 million), although the level of vacancy is reducing rapidly and at today's date stands at 16%.

Ongoing operating profit was $14.3 million (30 June 2010: $9.5 million) after share based payment charges of $5.9 million (30 June 2010: $4.5 million), foreign exchange losses of $2.4 million (30 June 2010: profit of $1.2 million) and depreciation of $1 million (30 June 2010: $0.2 million). Administrative expenses for the Group were $13.8 million (30 June 2010: $14.1 million) before share based payments, depreciation and foreign exchange. This reflects our stable overhead base, additional NOI making a direct cash contribution to profit.

This generated healthy operating cash inflows for the period of $28.9 million (30 June 2010: $14.8 million). New borrowings in the period more than covered debt servicing commitments and cash had a net increase of $19.5 million since the year end after dividend payments of $8.6 million.

Net finance costs, before mark to market valuation of financial instruments and amortisation of costs for the period were $30.2 million. (30 June 2010: $30.1million) including the preference share charge of $14.6 million. At the period end the Group had bank debt of $482 million (31 December 2010: $423 million) and cash balances of $129 million (31 December 2010: $108 million).

Tender Offer

After the recent market turbulence we again find our share price at a significant discount to our adjusted, fully diluted NAV per share, 34% at today's price of 47.5 pence. At this level, we believe that a tender offer buy back remains the most efficient way of returning cash to shareholders. Accordingly, we intend to implement a tender offer buy back of 1 in 46 ordinary shares at 58 pence, a premium of 22% to the current price and the equivalent of a dividend of 1.25 pence per share. The tender offer will be subject to the approval of shareholders and warrantholders and a circular setting out full details and convening the respective meetings will be posted shortly. It is expected that the tender offer will complete in early October 2011.

Net Asset Value

Basic NAV per share was $1.26 at 30 June 2011 (31 December 2010: $1.16). Fully diluted NAV per share at today's sterling exchange rate is 71 pence.

The increase in NAV from $580 million at the year end to $644 million follows the formal bi- annual valuation of our completed portfolio by JLL. Based on this valuation, our investment properties are carried at $1,078million at 30 June, an increase of $103.8million over the 31 December 2010 valuations. This represents an ERV yield of 12% and a capital value of $1,067 per sqm for the warehouse portfolio (31 December 2010: 12.8% and $927 per sqm).

Financing

Total bank debt outstanding at 30 June 2011 was $482 million (31 December 2010: $423 million) at a weighted average cost to the Group of 7.0% (31 December 2010: 7.0%) and a weighted term to maturity of 3 years (31 December 2010: 3 years). The Group's gearing ratio was 38% (31 December 2010: 36%).

In January, we completed a $30 million, 7 year term loan with Marfin Bank secured on our Lobyna warehouse and in June we completed a $38 million, 9 year term facility for the completed phase 1 of our Klimovsk project.

Shortly after the end of the reporting period, the Group signed an amendment to the existing facility agreement with Aareal bank, refinancing and extending the current $109m facility secured on the Istra complex. A further $34million will be available at completion, which is expected in the last quarter and the overall loan term has been extended by 5 years until April 2016. All other commercial terms remain the same.

Documentation on the refinancing of the $57 million HSH Nordbank construction loan secured on the Noginsk project and maturing in October has now commenced with Unicredit. Further announcements regarding terms and timing will follow in due course once the facility agreement is agreed and signed.

Hedging

Following the completion of the Marfin facility on the Lobyna asset, the US LIBOR risk on the $30 million exposure was hedged in January with a cap on a three year term with a 3.50% strike rate.

The existing swap for the Istra project that was due to expire in December this year was renewed with a forward swap for $115 million at a rate of 1.86% until loan expiry in April 2016. The combined effect of these new hedges extends the overall cap profile on $151 million of debt from 2 years to 4.5 years at an average strike of 3.1% and extends the overall swaps profile on $255 million of debt from 1 year to 3 years at an average fixed rate of 2.7%.

Conclusion

So, in summary, significant new lettings, rental growth, increased operating cash inflows and improving valuations. We look forward to more of the same in the second half of the year.

Richard Jewson

Chairman

29 August 2011

Chief Executive's Statement

Our market and Russia generally, show steady improvement.

Tenant demand continues to strengthen. Since 31 December 2010 we have leased a further 188,000 sqm adding an additional $28 million of annualised NOI and our annualised consolidated NOI is $112 million before cost on vacant space. This rises to $115 million on conversion of PLAs and LOIs.

At Noginsk, Moscow, we completed the largest letting in the market this year, leasing 76,000 sqm for 10 years to X5 Retail Group, who are the largest retailer in Russia. Works to improve the property, including conversion to cold storage, are in hand and X5 are expected to take occupation in the 3rd quarter.

We should achieve $129 million of NOI when fully let with a further increase of $6 million next year from the 53,000 sqm we are building at Klimovsk phase 2.

Valuations have improved a lot, mainly as a result of rents rising to reflect an increasing shortage of vacant space, particularly in Moscow. There is still very little new construction so this improving rental trend looks set to continue.

Yield compression has started as we see more investors becoming interested in the fundamentals we have known for some time. I still think it has a long way to go, but we will have to wait and see what happens.

Colliers report that rents in Sao Paolo, Brazil are $230 per sqm. Elsewhere JLL believe that yields in China will tighten from their current level of 8.5%. The rents and yields in the Moscow market look comparatively undemanding and we expect a rerating to take place as yield hungry investors realize the potential of the sector in Russia.

Our whole organisation has been driven to improve NOI (i.e. let our vacant space) whilst keeping a stable cost base and secure financing. We are closing in on all of our NOI targets and inevitably we, and our shareholders, are starting to dare to think about growth.

Selective, controlled new development seems the best route to underpin growth at the moment. It has proved difficult to agree terms on income producing assets at the right price although we continue to try. We already own high quality land and have attractive land acquisitions under negotiation. This will allow us to increase our investment portfolio at attractive yields on cost without getting over-exposed to development or over-extending our balance sheet.

A modest target of organically growing our investment portfolio by 5 to 10 percent each year will produce excellent growth in the medium to long term.

Across the portfolio we are looking at opportunities to develop additional space on land we already own as the marginal returns are attractive. We have identified the possibility to add a further 100,000 sqm across three sites in Moscow and one in Rostov. Construction on these sites will commence during 2012, if favourable market conditions persist.

As our portfolio matures more opportunities are available for active value enhancing management. In Moscow we have signed contracts to buy an additional 8ha of land adjacent to our Klimovsk project where we estimate we can build an additional 45,000 sqm. In St Petersburg we have sold 2ha of surplus land to Johnson Controls.

Our focussed piece of the world, logistics warehousing in Russia, looks great. Growing economy, improving consumer markets combined with a structural under supply of space are excellent ingredients. There is no sign, yet, of a development boom whilst construction finance remains tight and the global players ignore Russia.

If these local factors start to change it will probably mean that rents have gone up and yields down which will be good for us.

The "global macro" continues to look awful. Gold coins, tinned food and bottled water still appeal to me. There is too much debt in the West both in countries and with individuals and you can't create the wage inflation necessary to make this go away in the new globalised world with lots of capacity. The best solution to this is a long period of debt repayment so here comes low growth (if we're lucky) and deflation.

The reason for saying what I think is that it impacts on Raven Russia's strategy. The worry is that these problems hit the world's banks again and credit becomes more difficult for us in Russia. We are focussed on prolonged stable banking arrangements in asset-specific structures. We also love cash flow.

The original aim of Raven Russia was to create a focussed, high quality, high yielding property portfolio that, sensibly financed, could pay attractive dividends to our shareholders. The last six years have not gone perfectly to plan but although it has taken longer and our share structure has changed from our original one, the property piece is nearly there.

As we go into 2012, our improving NOI should make us profitable and cash generative each quarter. This will allow us to continue paying out through buy-backs or dividend depending on where our shares trade against NAV at any given time.

We have finally removed the annoyance of our preference shares trading on AIM. They moved to the Official List in July giving the specific opportunity to UK individual holders of sheltering their income in ISAs.

Overall, we are planning more of the same in the next six months and look forward to reporting continued progress at the end of the year.

Glyn Hirsch

Chief Executive Officer

29 August 2011

Corporate Governance

Principal risks and uncertainties

Internal controls and an effective risk management regime are integral to the Group's continued operation. The Group considers its principal risks to be:

Strategic risks

Our ability to anticipate, manage and take advantage of changes in the economic environment.

Real estate and development risks

Potential loss of income and increased vacancy due to customer default, falling demand or over supply.

Financial risks

A material fall in the Group's property asset vales or rental income could lead to a breach of financial; covenants within its credit facilities, which in turn could lead to credit facilities being cancelled.

Deterioration in the Group's credit profile, a decline in debt market conditions or general rise in interest rates could impact the cost and availability of borrowings

Foreign exchange rate changes could reduce the US Dollar value of assets and earnings.

There have been no significant changes to these risks in the period. The risk management processes adopted by the Group, together with a detailed analysis of these risks are described in the Annual Report of the Group for the year ended 31 December 2010.

Going concern

The financial position of the Group, its cash flows, liquidity and borrowings are described in the Chief Executive's Statement and the accompanying financial statements and related notes. During the period the Group had and continues to hold substantial cash and short term deposits. These were supplemented by the increasing and profitable rental streams and as a consequence the Directors believe the Group is well placed to manage its business risks.

After making enquiries and examining major areas that could give rise to significant financial exposure, the Board has a reasonable expectation that the Company and the Group have adequate resources to continue its operations for the foreseeable future. Accordingly, the Group continues to adopt the going concern basis in the preparation of the accompanying interim financial statements.

Directors' Responsibility Statement

The Board confirms to the best of its knowledge:

The condensed financial statements have been prepared in accordance with IAS 34 as adopted by the European Union, and that the half year report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R.

The names and functions of the directors or Raven Russia Limited are disclosed in the Annual Report of the Group for the year ended 31 December 2010.

This responsibility statement was approved by the board of directors on the 29 August 2011 and is signed on its behalf by

Mark Sinclair Colin Smith

Chief Financial Officer Chief Operating Officer

INDEPENDENT REVIEW REPORT TO RAVEN RUSSIA LIMITED

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2011 which comprises the Condensed Unaudited Group Income Statement, the Condensed Unaudited Group Statement of Other Comprehensive Income, the Condensed Unaudited Group Balance Sheet, the Condensed Unaudited Group Statement of Changes in Equity, the Condensed Unaudited Group Cash Flow Statement and the Notes to the Condensed Unaudited Financial Statements 1 to 15. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Ernst & Young LLP

London

Date 29 August 2011