On November 27, 2007 the Board of Directors of OJSC LSR Group held a regular meeting that decided to convene an extraordinary General Shareholders Meeting on February 7, 2008.

The approved agenda of the meeting included, in particular, an item on early termination of powers of the Board directors and election of a new Board of Directors following the Board’s decision to expand its membership.

The proposed increase in the composition of the Board is linked to the decision to establish a Strategy and Investment Committee under the Board of Directors as well as, in conformity with legislative regulations and best practices of corporate governance, to enable the new shareholders of the Company following the IPO to nominate their candidates to the Board. Accordingly, as stated by Member of the Board of Directors and CEO of LSR Group Igor Levit, the company has circulated notice to all major shareholders of LSR Group.

It may be recalled that as of now the Board of Directors of LSR Group is composed of five members including two independent directors, and has two committees – HR and Compensation Committee, and Audit Committee.

For reference:

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 residential property built after designs made by leading domestic and foreign architects.

LSR Group has enterprises and offices in St. Petersburg, Moscow, a number of cities in the Leningrad Region, in Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs nearly 15,000 people.

In 2004, 2005 and 2006 the revenues of LSR Group were RUB 7,530.9 mln, RUB 13,085.5 mln, and RUB 21,110.8 mln respectively. For the six months of 2007 the Group’s revenues amounted to RUB 16,062.0 mln compared to RUB 9,336.4 mln for the same period last year.

In July 2007, Moody’s Investors Service assigned a B1 rating to LSR Group; outlook – stable.

For more details please contact:

Press Service of LSR Group
+7 (812) 314-1044
press@lsrgroup.ru
www.lsrgroup.ru