LSR Group signs contract to design medical centre

LSR Group signs contract to design innovative medical centre

OOO LSR Stroy, a subsidiary of LSR Group (LSE: LSRG; MICEX, RTS: LSRG), signed a contract with Chief Army Support Department for design (phase 1) of a Multipurpose Medical Centre in Sestroretsk for St. Petersburg Medical Academy n.a. S.M. Kirov.

According to the technical specifications, the new complex with necessary educational, research, medical and residential facilities will be built on the land plot of 275 ha. The centre will consist of: clinic, research and educational buildings, conference-halls, helicopter pads, residential complex for students and medical personnel as well as transport and public infrastructure. The clinic will be able to accommodate around 1,600 patients while the educational site is to admit around 3,000 students and visitors.

This is a huge innovative project, unique both for Russia and for the rest of the world as there is nothing comparable to it today. Construction of the new medical centre will be based on the advanced European approaches in architecture and design as well as on the energy-efficient technologies and modern safety standards.

Design works is planned to be completed by the end of 2013.

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

"Participation in this huge innovative project on creating a medical institution of a new type is of a high importance for LSR Group. Working on this project, we will certainly rely on the latest global expertise in medicine and use a comprehensive approach for designing education, research and health care processes. I'm sure that thanks to this project both St. Petersburg and Russia may become one of the world leaders in medicine".

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. Nowadays LSR Group is one of the largest real estate development and building materials producing companies in Russia. 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. As of 31 December 2010 (according to DTZ Russia), the net sellable area of the projects in LSR Group's real estate portfolio is equal to 8.4m m2 with the market value of RUB 104bn.

In 2010, the sales revenues of LSR Group were RUB 49,950m (IFRS).

LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on OJSC MICEX-RTS.

Medical Academy n.a. S.M. Kirov in St. Petersburg - first higher medical educational institution for medical personnel of RF Military Air Forces. Founded in 1798, this is the oldest medical and military higher educational institution in Russia. The Academy is aimed at education, scientific research and medicine.

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