MORTGAGE PROGRAMME EXPANSION

THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR

INDIRECTLY IN THE UNITED STATES OF AMERICA

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

MORTGAGE PROGRAMME EXPANSION

(LONDON, November 23 2010) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to announce that it has reached agreement with Gazprombank for the expansion of its programme, first announced on 02 June 2010, to issue mortgages to PIK customers for properties under construction.

Under the renewed agreement, the partnership with Gazprombank will be expanded to include an additional two buildings in the Krasnaya Gorka mass market project, bringing the total number of buildings eligible to eight. Certain base contract terms to customers have also been changed: loan-to-value ('LTV') has been raised to 85% (up from 80%) and the maturity period lifted to 30 years (from 25 years); the RUB interest rate at 13% remains unchanged.

At present, the mortgage program is applicable to the following apartment buildings:

·; mass market project "Yaroslavsky" in the city of Mytischi (located in the Moscow region), building 9;

·; mass market project "Krasnaya Gorka" in the city of Lubercy (located in the Moscow region), buildings 16, 19, 31, 32 and the added buildings 18, 20;

·; mass market project "Bicevsky" (located in Moscow), building 4.

Enquiries: