Proposed Issuance of Series C Bonds

5 August 2010

MirLand Development Corporation plc

('MirLand' / the 'Company')

PROPOSED ISSUANCE OF SERIES C BONDS

MirLand Development Corporation plc, one of the leading residential and commercial property developers in Russia, is pleased to announce that it has held a tender for institutional investors in Israel in connection with a possible issuance of C Series Bonds ("Bonds"). Within the framework of the tender, the Company has accepted early commitments from a number of institutional investors for a total of New Israeli Shekel 145,760,000 Bonds (approximately US$38.7 million), at a maximum interest rate of 8.5% per year.

If completed, the issuance of Bonds, will be undertaken via a shelf offering report, which would be published by the Company in Israel. The offering is subject to approval by the Board of Directors of the Company and approval by Tel Aviv Stock Exchange to register the Bonds for trading.

For further information, please visit www.mirland-development.com, or contact: