Partial early redemption of Series-02 bonds

LSR Group announces partial early redemption of its Series-02 bonds

OJSC LSR Group (LSE: LSRG; MICEX-RTS: LSRG), one of the leading real estate developers and building materials producers in Russia, announces put option on its Series-02 interest-bearing non-convertible bonds with mandatory safekeeping.

Identification number 4-02-55234-E as of 29 May 2008.

LSR Group intends to buy back up to 1,000,000 (one million) Series-02 interest-bearing non-convertible bonds. Maximum purchase price is set at 100.6% (one hundred and six percent) of the nominal value. In addition, accumulated coupon interest, calculated in accordance with the issue documentation as of the buy-back date, will be paid to the purchase price.

Submission date: from 9 a.m. (Moscow time) on September, 12, 2012 until 6 p.m. (Moscow time) on September, 12, 2012.

Buy-back date: September, 13, 2012.

Broker: OOO URALSIB Capital 

Notes 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 and Yekaterinburg.As of 31 December 2011 (according to Cushman & Wakefield 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 124bn.In 2011, the sales revenue of LSR Group were RUB 51,910m (IFRS). LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX-RTS.

For more information 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