LSR Group announces bond placement

LSR Group announces bond placement

LSR Group (LSE: LSRG; MICEX, RTS: LSRG) announces the placement of interest-bearing non-convertible rouble bonds redeemed at the request of the owners and at the discretion of the issuer. The bonds will be placed through public subscription. The total size of the issue is RUB 2 billion.

Bond information:Issuer: OJSC LSR GroupSeries: BO-05Identification number: 4Â02-05-55234-Å as of 16 February 2011Placement date: 28 July 2011Duration: 1092 days starting from the placement dateInterest payment periods: 6 interest payment periods of 182 days eachLead manager: Uralsib Capital

The placement will be conducted in the form of tender to determine the first coupon rate pursuant to the procedure established by the Resolution on securities issue and the Prospectus. The interest rate of the second, third, fourth, fifth and sixth coupons will be equal to the first coupon rate.

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