Mortgage Program Extension

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PIK GROUP ("The Group" or "PIK")

MORTGAGE PROGRAM EXTENSION

(LONDON, October 28 2010) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to announce that it has reached agreement with Sberbank of Russia for the expansion of its programme to make mortgages available to PIK customers for properties that are under construction.

Under the agreement, a further mass market project in Moscow region, located in the city of Dmitrov (Makhalina street, building 4), has been added to the programme.

The base mortgage terms to customers include: loan-to-value ('LTV') of up to 85% (under "young family" mortgage programme - up to 90%), a RUB interest rate from 9.5% with maturities up to 30 years.

Dmitrov, Makhalina Street, building 4 is a 12-story building, which will comprise approx. 320 flats and accommodate approx. 800 people upon full completion. The building is located in close proximity to necessary amenities and a water protection area of Yakhroma River.

Enquiries:

Investors

PIK Group Tel: +7 495 505 97 33 ext. 1315/1358

Viktor Szalkay

International media

Citigate Dewe Rogerson Tel: +44 20 7638 9571

Tom Baldock

Lindsay Noton

Russian media

Dmitry Ivliev Tel: +7 495 505 97 33 ext. 1010/1028