(LONDON, 05 June 2008) - PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, today announced it has signed an agreement to purchase a 229 hectare land plot for development in the City of Izhevsk, Republic of Udmurtia.

The Republic of Udmurtia is a sovereign republic within the Russian Federation. It is situated in the Western part of the Middle Urals between the Kama and Vyatka rivers. Izhevsk, the capital of the Republic is situated approximately 1325 km west of Moscow and has a population of approximately 654,000 people.

Udmurtia’s economy is especially strong in the military, consumer goods and automobile industries. It also has a good transport infrastructure with railway, motorway, waterway and air connections to Russia’s other regions.

This will be a flagship development for PIK in Udmurtia. The Group plans to develop 1.5 million square meters of middle class housing, as well as social infrastructure and commercial facilities on the site.