LSR Group acquires new raw materials deposits

LSR Group acquires raw materials deposits for cement production

in the Central region of Russia

OOO Cement (a subsidiary of LSR Group) signed a contract to acquire OOO Kazinskoe kar'eroupravlenie.

Through this acquisition LSR Group will obtain licenses for clay and limestone deposits in the Ryazan region with total estimated reserves of 240 million tonnes. LSR Group will also obtain freehold rights for 273 hectares of land and leasehold rights for 18 hectares, the latter to be used for cement plant construction.

Future construction site is located just 200 km from Moscow, 80 km from Ryazan and 7 km from Moscow railroad station, near the source of raw materials used for cement production - deposits of limestone and clay. Such convenient logistics enables direct access to the Moscow region, Central and Southern Federal Districts' markets.

Technical requirements for connection to railroad network and federal power grid are already obtained.

According to the market research agency Resheniye, in 2010 cement market volume in the Central region amounted to 15 million tonnes, production volume - 12.5 million tonnes. 80% of existing production facilities are mostly obsolete and represented by the plants using "wet" technology.

Alexander Vakhmistrov, CEO and Chairman of the Executive Committee of LSR Group, comments:

"The new cement plant project in Central Federal District, being a part of our expansion in the Moscow region, is of strategic importance for LSR Group. We believe that our past experience in cement plant construction in the Leningrad region will allow us to complete the new project in shorter period of time."

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.

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