PIK Grp to merge two manufacturing sites in Moscow

PIK Group to merge two manufacturing sites in Moscow Metropolitan Area

London, February 18, 2013: PIK Group ("PIK" or "the Group"), one of Russia's leading residential real estate developers, today announces that it is to merge two of its Moscow based industrial housing plants, DSK-2 and DSK-3, into one business unit.

By integrating the two plants, PIK will achieve important efficiencies. These include investing in the modernization of a single production site rather than two, bringing core competences closer together and reducing annual operating costs. Operational effectiveness will also be improved by centralizing management functions and creating one service and purchases center.

The integration project will be overseen by Vice President for Industry and Construction Konstantin Kuznetsov. The directors of DSK-2 and DSK-3, respectively Alexander Gribov and Dmitry Kapyrin, will continue as plant managers.

One of PIK's key strategic competitive advantages is that it has ownership of its production facilities, ensuring that it can efficiently deliver on large scale affordable housing development projects. This integration project is a logical strategic step as both plants already work in close cooperation. Their total production capacity is 658,000 cu. m. of reinforced concrete per year, equivalent to 820,000 sq. m of housing. Within the framework of the project PIK plans to increase capacity to 850,000 cu. m. reinforced concrete per year, or 1 mln sq. m of housing.

The project is expected to take 1.5 years to complete and will deliver cost savings of 1.5 bln rubles per year. The project will also free up land for the Group to allocate for new development projects.

-ends-

Enquiries:

PIK Group

Investors

Viktor Szalkay Tel: +7 495 505 97 33 ext. 1358 / 1315

Media

Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 / 1014

About PIK-Group

PIK-Group is a leading Russian real estate developer, focusing on large-scale residential projects within the Moscow Metropolitan Area and selected Russian regions. Since its foundation in 1994, PIK-Group has become a market leader in mass market residential property sector completing over 200 000 apartments of affordable housing across the country. The Group has a substantial diversified land bank of net selling area of 6.9 million square meters and a dedicated professional team with over 12,000 employees. Given its brand recognition and the scale of its operations, in 2008 the Russian Government included PIK on the list of the nation's strategically important companies. For more information please visit: http://www.pik-group.com