Joint Stock Company Open Investments (JSC “OPIN” or the “Company”) is pleased to announce its financial results for the year ended 31 December 2006. According to the consolidated financial statements prepared in accordance with IFRS, equity attributable to the shareholders of the parent company has increased by more than 5 times, exceeding US$1.2 billion as at  31 December 2006. Total assets have grown 2.5 times since the beginning of the year, now standing in excess of US$1.6 billion as at 31 December 2006.

The growth in assets and equity was driven by the additional issuances of shares in April and October, an increase in the fair value of assets and profit from the Company’s current projects, including Pavlovo, Pestovo, Meyerhold Class A Office Center and Novotel Moscow Center Hotel.

In 2006 new contracts were concluded with customers in residential property projects totaling US$ 72 million. In accordance with IFRS (IFRS 11 “Construction contracts”) cash received from customers was not recognized in full as revenue.

As a result of gross margin growth from 37% to 40% Company’s gross profit in 2006 remained approximately at the same level as in 2005.

The Company continues to build up the volume of sales, in 2007 sales commenced in two cottage communities: Martemianovo and Pavlovo-2.

Net profit attributable to shareholders of the parent company grew more than fourfold in 2006, exceeding US$ 58 million. EBITDA was up 2.7 times versus 2005 at circa US$ 70 million.

Since 2002 Deloitte, the international auditing and consulting firm, has been the auditor of the JSC “OPIN”.

Mr. Sergey Bachin, General Director of JSC “OPIN”, commented that: “In 2006 the Company successfully developed and consistently followed its strategy. Our segment priorities include premium suburban residential developments and class A office centres. We are also considering an opportunity to enter the suburban housing segment for the middle class.  The Company continued to actively expand its land bank, which amounted to more than 770 hectares as at 31 December 2006, a 15% increase in the year. The land bank expansion programme has laid a firm foundation for the successful development of the Company in the years ahead. I would like to highlight the success of the additional share offerings made by the Company, evidencing appreciation of our activities by the investment community. In April 2006 the Company issued additional shares in the amount of US$ 90 million and in October 2006 it completed a large-scale additional placement of shares in the amount of US$881 million. During 2006 Company’s capitalization increased more than fourfold and reached US$ 2.1 billion by the end of 2006. International capital markets are becoming a reliable source of funds for the implementation of our investment strategy”.

Consolidated financial statements prepared in accordance with IFRS are available on the web site at the following address:  https://www.opin.ru/.