Resignation of Non-Executive Director

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION

IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

AFI DEVELOPMENT PLC("AFI DEVELOPMENT" OR "THE COMPANY") RESIGNATION OF NON-EXECUTIVE DIRECTOR

London, 1 March 2013 - AFI Development announces today that it has received notice from Michalis Sarris, an independent non-executive director of the Company, of his resignation from the Board, effective from 1 March 2013. The resignation follows the appointment of Mr Sarris as the Minister of Finance of the Republic of Cyprus in its new government.

The Company intends to seek a new non-executive director to replace Mr Sarris, and will update the market as and when a replacement is found.

Commenting on today's announcement, Mr Lev Leviev, Executive Chairman of AFI Development, said: "On behalf of the Board of AFI Development and the whole Company I am delighted to congratulate Mr Sarris on his appointment to the new Cypriot government and to wish him best of luck in this role. I would like to thank him for his valuable contribution to the Board of AFI Development. We are confident that Mr Sarris will serve the people of Cyprus as a most capable and experienced Finance Minister".

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For further information, please contact:

AFI Development, +7 495 796 9988

Ilya KutnovEkaterina Shubina

Citigate Dewe Rogerson, London+44 20 7638 9571

David Westover

Sandra Novakov

Reena Mavjee

About AFI Development

AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd.

AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction, and quality and customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets across Russia, with Moscow being its main market. The Company's existing portfolio comprises commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighborhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.