On 15 May, the Board of Directors of OJSC LSR Group, one of the leading real estate developers and building materials producers in Russia (LSE: LSRG; MICEX, RTS: LSRG), approved 26 June, 2008 as the date for holding the annual General Shareholders Meeting of the company, and also agreed its agenda.

The agenda will include, inter alia, items such as approval of LSR Group’s annual report for 2007, determination of the number of Board directors and its election, and approval of the company’s auditor for 2008.

The Board of Directors decided to recommend to the General Shareholders Meeting to elect board in its former composition of 7 members (4 senior managers of the company and 3 independent directors), and nominated the following candidates for election: 

1. Igor Levit, CEO of LSR Group.

2. Mikhail Romanov, Managing Director of LSR Group.

3. Elena Tumanova, CFO of LSR Group.

4. Dmitry Goncharov, Managing Director of LSR Europe GmbH (a company of LSR Group).

5. Lauri Ratia, Independent Director, chairman and board director of a number of Finnish companies specializing in different industrial sectors. Chairman of the Board of Directors in four companies: Sponda plc (real estate Finland and Russia), Tecnomen plc (messaging and prepaid systems for telephone operators globally), Medisize Ltd (medical and diagnostics equipment and packaging with production in eight EU countries), Edita plc (printing, publishing and marketing services in the Nordic countries).

6. Sergey Skaterschikov, Independent Director, Chairman of the Board of IndexAtlas Group, Vice President of OJSC MTS and board director of OJSC OMZ, OJSC Kirovsky Zavod, Independence Group and others.

7. Seppo Juha Remes, Independent Director, CEO of Kiuru Partners LLC consultancy company, board director of OJSC RAO UES of Russia, OJSC OMZ, OJSC Severstal-Avto, OJSC SIBUR and others. Chairman of the Board of EOS Russia.

In conformity with the dividend policy of the company, the Board took the decision to recommend to the GSM not to declare dividends on ordinary registered shares in OJSC LSR Group based on the results of 2007 and gave preliminary approval to the company’s annual report.

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 $ 463 million and $ 777 million respectively. In 2007, the revenues amounted to $ 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.