Joint Stock Company Open Investments (JSC “OPIN” or the “Company”) is pleased to announce its financial results for the year ended 31 December 2007. According to the consolidated financial statements prepared in accordance with IFRS, equity attributable to the shareholders of the parent company has more than doubled, exceeding US$2.7 billion as at 31 December 2007. Total assets have grown 2 times since the beginning of the year, now standing at US$3.5 billion as at 31 December 2007.
 
The growth in assets and equity in 2007 was driven by:

Joint Stock Company Open Investments (JSC “OPIN” or the “Company”) is pleased to announce its financial results for the year ended 31 December 2007. According to the consolidated financial statements prepared in accordance with IFRS, equity attributable to the shareholders of the parent company has more than doubled, exceeding US$2.7 billion as at 31 December 2007. Total assets have grown 2 times since the beginning of the year, now standing at US$3.5 billion as at 31 December 2007. The growth in assets and equity in 2007 was driven by:

• increase in the fair value of assets as a result of dynamic projects’ development and improved market conditions, in particular, in respect to the development of Domnikov Class A Business Center;

• profit from the Company’s current projects, including Pavlovo and Pestovo lifestyle communities, Meyerhold Class A Office Center, Novotel Moscow Center Hotel and sale of approximately 16.9 hectares of land in Samara;.

• additional issue of shares in April and October.

Revenue almost doubled in 2007, reaching US$ 165 million, and net profit attributable to shareholders of the parent company grew 1.5 times in 2007, exceeding US$ 86 million. Effective*  gross margin in 2007 remained approximately at the same level as in 2006, averaging 43%.

In 2007 the Group started presale of Martemianovo Community and presale of town houses and apartments in low-rise buildings in Pavlovo-2 Community. New contracts were concluded with customers in those communities totaling approximately US$ 96 million. Cash received from customers was not recognized as revenue as of 31 December 2006 In accordance with the accounting policy. Revenue from sales of town houses and apartments in low-rise buildings is recognized when the construction is completed and the property is transferred to the buyer. Revenue from sales of land is recognized when legal title passes to the buyer.

In 2007 the Group demonstrated remarkable progress:

• The Group continued to actively expand its land bank, which amounted to more than 5 700 hectares as at 31 December 2007, approximately a 7 times increase in the year.

• The Group committed and partially prepaid acquisition of up to additional 13,000 ha of land to the Western and Northern directions of Moscow, which were located along efficient transportation arteries and/or had good recreational potential.

• The master plan for Large Zavidovo Community was finalized in 2007. Leading international advisors were involved in the development of it. OPIN engaged EDAW (www.edaw.com), a reputable international master planning consultant and architect firm. OPIN also engaged Economic Research Associates (ERA- www.econres.com), a respected leisure and tourism industry consulting firm, to advice on the project concept development and economic analysis.

• The underground levels were completed and the aboveground reinforced concrete construction works were at advanced stage at Domnikov Class A Business Center.

• The Group advanced in the development of A.I. Raikin Art, Culture and Leisure Centre Retail and Entertainment Complex. The reinforced concrete erection was completed in the underground section of the Block B. Construction works were in progress on the underground section of the Block A.

• The Group almost fully pre-contracted Pavlovo Podvorye Retail and Entertainment Complex and completed construction of the centre in a ‘shell and core’ condition.

• The Act of Permitted Use of the site was obtained for the OPIN Plaza Class A Business Center Development.

• In October 2007 the Group became a management company for the development of Rosa Khutor Resort (Sochi).

• The Group contracted a general architect (PRP Architects Ltd) for the development of Sochi Hotel and Resort Estate.
• The Group started sales in the Pavlovo-2 Community and the Martemianovo Community.

In the first quarter 2008 the Group continued to actively develop its projects:

• In January 2008 the categorized use of approximately 230 hectares of land in Lukino Community was changed to residential.

• In February 2008 the Group acquired approximately 61% of equity interest in Viceroy Homes Limited, a leading Canadian manufacturer of quality prefabricated timber frame home-building systems. The Group also entered into a shareholders’ agreement with the holders of all the remaining outstanding Class B Multiple Voting Shares of Viceroy.

• In March 2008 the categorized use of 1 300 hectares of land in Large Zavidovo was changed to residential and other statuses according the Master Plan.

• First quarter of 2008 became one of the most successful in terms of presale of communities: 73 contracts were signed with customers in Pavlovo-1, Pavlovo-2, Pestovo and Martemianovo Communities. Leaders of presales were townhouses and apartments in low-rise buildings in the Pavlovo-2 Community.

Since 2002 Deloitte, the international auditing and consulting firm, has been the auditor of the JSC “OPIN”. Jones Lang LaSalle has been conducting an independent appraisal of the majority of the Company’s assets.

Mr. Andrei Klishas, Chairman of the Board of Directors of JSC “OPIN”, said:” We are satisfied with the results. On the one hand, they represent a convincing evidence, that the strategy is right, and on the other hand, they inspire optimism in the Company’s future prospects. OPIN begins a new phase of its development, switching from extensive growth (more land acquisition, more construction projects, etc.) to an intensive development of integrated projects, taking full account of such important features as providing attractive social infrastructure, ensuring that projects are ecologically friendly, and that they are properly aligned with interests of local communities. OPIN represent a good example of socially responsible business.”

Mr. Sergey Bachin, General Director of JSC “OPIN”, commented that:

“In 2007 the Company successfully developed and consistently followed its strategy. Our segment priorities include large-scale integrated developments (master plan developments) and class A office centres development.

Development of middle-class residential housing is becoming one of important elements of our growth strategy. Development of this particular market segment has great potential in Russia and particularly in Moscow Region. Analysing the way of making the most out of growth in this segment we appreciated the reliability, cost-effectiveness and high quality of prefabricated timber frame home-building systems. To secure access to that technology, in February 2008 the Group acquired approximately 61% of equity interest in Viceroy Homes Limited, a Canadian manufacturer of prefabricated timber frame houses.

The Group pioneered this new building technology at the Martemianovo Community, where approximately 50 prefabricated timber frame houses are currently under assembly. We believe, that such technology may allow us to reduce construction time as compared with traditional concrete building techniques.

The Company continued to actively expand its land bank, which amounted to more than 5 700 hectares as at 31 December 2007, approximately a 7 times increase in the year. The land bank expansion programme allowed the Company to enhance our large scale integrated developments. Opportunity to proceed with such mega projects in the out-of-town market provides us with a solid basis for the successful growth of the Company in the years to come.

I would like to highlight the success of the additional share offerings made by the Company, evidencing appreciation of our activities by the investment community. In May 2007 the Company issued additional shares in the amount of approximately US$ 325 million and in October 2007 it completed a large-scale additional placement of shares in the amount of approximately US$591 million”.

Consolidated financial statements prepared in accordance with IFRS are available on the web site at the following address:  https://www.opin.ru/.

 *Gross margin adjusted for cumulative revaluation gains related to land plots disposed during the period, including without limitation the following: 1) direct transfer from revaluation reserve to retain earnings in the equity statement, 2) revaluation gains previously recognized in the profit and loss statement.