(LONDON, January 31 2011) - PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, is pleased to publish today a trading update for 12 months ended December 31 2010 based upon management accounts. Total gross cash collections for FY2010 was up by 22% and reached RUB39,897million.

Concurrently, total net cash collections for FY2010 were strongly up by 59% from RUB22,446million to RUB35,708million.

Total net cash collections for 2H2010 showed a continuing improvement of the Group’s operations and totaled RUB22,871million, showing 78% growth relative to 1H2010 due to strong cash collections from retail customers.

This strong growth was achieved by the start of pre-sales for new project launches (4Q2010: 13 new properties were put on sale). In particular, in the last month of the year, following a new-year marketing campaign, total net cash collections reached a record high post-crisis level of RUB6.3billion, including RUB3billion from apartment sales to retail customers.

With a recovery in consumer confidence, improvements in macroeconomic conditions, mortgage accessibility and property price growth in place, PIK saw a 148% year-on-year growth in FY2010 residential real estate sales, which came to RUB23,394million (FY2009: RUB9,420million). Retail sales accounted for 71% of the total residential real estate sales.

FY2010 new real estate sales contracts to customers increased by 307% year-on-year and exceeded RUB18,1billion. In total, the Group sold approx. 392,000 square meters, including 240,000 square meters to individuals and another 152,000 square meters to wholesale customers.

The Group’s core market, the Moscow metropolitan area, contributed approx. 83% into the Group’s FY2010 total new apartment sales to customers. PIK was mostly preselling properties at an early stage of construction. Average square meter prices for these properties showed positive dynamics in 2010. Property prices for Moscow, Moscow region and other regions were up year-on-year in ruble terms by approx. 12.9%, 7.0% and 9.9%, respectively.

Average sales to retail customers in FY2010 stood at RUB1,513million per month (FY2009: RUB372million), while average unit sales to retail customers were at 17.4 apartments per business day (FY2009: 5.6 units).