LSR Group sells unprofitable assets in Baltics

LSR Group sells unprofitable assets in Baltics

Today OJSC LSR Group has closed a transaction for the sale of 90% of Aeroc International AS to Yaico AS, previously a minority shareholder of Aeroc International AS (with a 10% stake). The deal amount was EUR 4.328 mln.

Prior to the restructuring, OJSC LSR Group had a 90% stake in Aeroc International AS that owned assets such as:

- OOO Aeroc SPb - 100%. OOO Aeroc SPb is an aerated concrete plant located in Russia (St. Petersburg). Its average annual output in 2009 was 380,000 cub.m of aerated concrete.

- OOO Aeroc- 100%. OOO Aeroc is an aerated concrete plant located in Ukraine (Berezan). Its average annual output in 2009 was 290,000 cub.m of aerated concrete.

- OJSC Aeroc Obukhiv - 97.3%. OOO Aeroc Obukhiv is an aerated concrete plant located in Ukraine (Obukhiv). Its average annual output in 2009 was 280,000 cub.m of aerated concrete.

- Aeroc SIA - 100%. Aeroc SIA is an aerated concrete plant located in Latvia (Saulkalne). Its average annual output in 2009 was 180,000 cub.m of aerated concrete.

- Aeroc AS - 100%. Aeroc AS is an aerated concrete plant located in Estonia (Andja). Its average annual output in 2009 was 220,000 cub.m of aerated concrete.

- Aeroc UAB - 100%. Aeroc UAB is an aerated concrete dealer based in Lithuania (Vilnius), the owner of plots of land with a total area of 4.4 ha (Kėdainiai).

- CJSC Scanex - 100%. CJSC Scanex is a dry mix plant in Russia (St. Petersburg).

As a result of the restructuring, OJSC LSR Group has retained the ownership of the most profitable assets, and is the sole shareholder in most of them:

- OOO Aeroc SPb - 100%

- OOO Aeroc - 100%

- OJSC Aeroc Obukhiv - 97.3%

- CJSC Scanex - 100%

The AEROC brand ownership title is retained by OJSC LSR Group.

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

"The Baltic States are not the strategic geographical region for LSR Group. Also, the difficult economic situation in Lithuania, Latvia and Estonia which occurred even before the global crisis of 2008 - 2009 makes it impossible to refer to our assets there as profitable. This deal allows us fully concentrate our resources on our strategic markets to ensure sustained growth of our business."

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 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 Service

Tel.: +7 812 314 10 44

Fax: +7 812 458 83 72

E-mail: [email protected]

www.lsrgroup.ru