Today, on May 14, 2008 the lock-up period has expired with respect to the sale of shares by the selling shareholders of LSR Group, one of the leading real estate developers and building materials producers in Russia (LSE: LSRG; MICEX, RTS: LSRG).

The 180-day lock-up period was specified in the underwriting agreement signed by the company’s selling shareholders in the course of the IPO implemented by LSR Group in November 2007.

However, a supplementary lock-up is still effective for the company in accordance with the voluntary decision taken by all those LSR managers holding an aggregate of 13.91% of the company’s share capital. The ban on sales of shares is a condition for the participation of the company’s senior managers holding LSR shares in the Long-Term Key Managers Motivation Programme, which has a 3-year period until December 31, 2010, [during which period participants in the programme may not sell shares].

Notes to Editors:

OJSC LSR Group is a diversified construction company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate development. 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 Oblast, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs over 15,000 people.

In 2005 and 2006, the revenues of LSR Group (according to IFRS statements) were US$ 463 million and US$ 777 million respectively. In 2007, the revenues amounted to US$ 1,403 million.

In November 2007, OJSC LSR Group implemented an IPO, and now its GDRs are listed on the London Stock Exchange, and the shares — on MICEX and RTS.

LSR Group has a B1 rating; outlook — stable assigned by Moody’s Investors Service.

In 2007, LSR Group was bestowed a National Award in the field of business as ‘The Company of the Year’ in the ‘Construction’ category.