LSR Group, one of the leading real estate developers and building materials producers in Russia (LSE: LSRG, MICEX, RTS: LSRG), today announced that according to preliminary unaudited IFRS accounts, the revenues of LSR Group in roubles grew by approximately 40% compared to the first half of 2007, and EBITDA grew by more than 60%.*

Elena Tumanova, CFO and a member of the Board of Directors of LSR Group said:

“We are pleased with the positive trend in the financial performance of the company linked to the growth of operational results of all of LSR’s divisions including the increased sales of building materials and the completion of several real estate development projects, as well as high market demand and a favourable situation in the Russian construction market as a whole, which, in its turn, made it possible for LSR Group to raise prices for its key products.”

*The consolidated IFRS financial statements for the first half of 2008 are planned to be published in October 2008.