Preliminary combined RFRS-based financial results

For immediate release

LSR Group's preliminary combined Russian Financial Reporting Standards-based financial statements for 2009

The financial results of LSR Group for 2009 compared to 2008 according to its preliminary combined Russian Financial Reporting Standards (RFRS)-based financial statements are as follows:

·; Revenue increased by 3.8 % to reach approx. RUR 50.6 Bn

·; Net profit decreased by 2.3 % to reach approx. RUR 6 Bn

\* The increase in liabilities in 2009 compared to 2008 occurred due to the cement plant construction of LSR Group. To ensure necessary funding for the cement plant construction, LSR Group opened credit facilities in State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)". It is anticipated that the plant will be put into operation in the second half of 2010.

Elena Tumanova, CFO of LSR Group comments:

"We positively assess our combined RFRS-based financial statements for 2009 especially taking into consideration that 2009 was a tough period for our sector. From our point of view the company's results show that not only we succeeded in ensuring stable operation of the company under difficult economic conditions but also continued realization of our largest investment project - cement plant construction".

Disclaimer:

1. The readers of this press-release are warned that the financial results of LSR Group referred to in this press-release are based on the preliminary combined RFRS-based financial statements and may differ from financial results derived from final combined RFRS-based financial statements of LSR Group.

2. RFRS-based financial statements include the combined balance sheet and income statement prepared in accordance with the Russian Financial Reporting Standards pursuant to the rules approved by Order of the RF Ministry of Finance No.112 dated 30 December 1996.

3. The principles used in the preparation of RFRS-based financial statements differ from principles used in the preparation of IFRS financial statements. LSR Group plans to publish its consolidated audited IFRS-based statements in April 2010.

Note to Editors:OJSC LSR Group is a real estate and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate. The Group includes enterprises for extraction and processing of aggregates, production and transportation of building materials, and housing construction - from mass market large-panel housing to elite property built after designs made by leading domestic and foreign architects. LSR Group has operations and offices in a number of cities in the Leningrad region, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. In 2007, the sales revenues of LSR Group (according to the IFRS-based financial statements) were RUR 35,858 million, in 2008 - RUR 49,813 million. LSR Group is a public company, with its GDRs listed and traded on the London Stock Exchange and its shares listed and traded on MICEX and RTS. In 2007, LSR Group was awarded 'The Company of the Year' National Award in the 'Construction' category.

For more details 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