Lauri Ratia, a senior advisor and board member of a number of Finnish companies specializing in various industrial sectors, has commented on his consent to join the Board of Directors of OAO LSR Group as an independent director:

«LSR Group is today a very important construction and building materials group in the Russian Federation. It has grown tremendously from a small local business to a substantial group of companies both in Russia and abroad. It is meeting increasing challenges in its ambition to grow and become more international. I think that the years of experience that I have from the various industries and boards in the international arena including building materials will benefit LSR Group in its ambition to grow and ensure its presence in capital markets.»

Lauri Ratia has almost 40 years of experience in various industrial sectors and investment companies both in Finland and abroad. L. Ratia worked for such distinguished companies as Finnish Nokia and Kone. Today he is a senior advisor and board member of a number of Finnish companies engaging in the sectors of beer and other beverages, domestic electronic equipment, publishing and editorial services, health care, real estate and building materials. In addition, for more than 20 years Mr. Ratia has been working in various public and private company boards in Finland and other countries.

It may be recalled that early in June a General Shareholders Meeting of LSR Group elected the following members to the Board of Directors:

1. Igor Levit, Chief Executive Officer, OAO LSR Group

2. Mikhail Romanov, Managing Director, OAO LSR Group

3. Dmitry Goncharov, Managing Director, LSR Europe GmbH (LSR Group company)

4. Lauri Ratia, Independent Director; Chairman of the Board of Directors of Sponda Oyj (real estate company, Helsinki, Finland), a senior advisor and board member of a number of other Finnish companies

Dmitry Goncharov was elected Chairman of the Board.

For reference: OAO LSR Group is a vertically integrated diversified holding company, a leader of the Russian construction industry. Its core business areas are building materials manufacturing, construction and real estate development. The Group includes enterprises for aggregate extraction and processing, building materials manufacturing and transportation, 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 Leningrad Oblast, in Lithuania, Latvia, Estonia and Ukraine. The total number of its employees is approx. 14,000 people.

According to the audited consolidated IFRS results of OAO LSR Group, its earnings in 2006 amounted to 21.1 billion rubles, a 61% increase over 2005, pre-tax income in 2006 reached 1.76 billion rubles, and net profit stood at 1.1 billion rubles.

OAO LSR Group:

No.1 in Russia in ceramic brick production

No.1 in Russia and Northern Europe in aerated concrete production

No.1 in Russia in construction aggregates production

No.1 in Russia in ready-mixed concrete production

No.1 in St. Petersburg in elite real estate development

No.1 in St. Petersburg in reinforced concrete structures production

No.1 in St. Petersburg in large-panel housing construction

Lauri Ratia, born May 21, 1946 in Helsinki, Finland

M.Sc. (Eng.) Machine Construction, University of Technology, Helsinki 1971

AMP 1986, Harvard Business School, Boston, MA, USA

Over 35 years of experience in professional management with machine-building, electronics, paper and equity finance companies in Finland, Sweden and the USA.

1998-2006 Lohja Rudus Group, Helsinki, Finland: Managing Director (in 1999, Finnish group Lohja Rudus was acquired by CRH plc, Dublin Ireland).

Lohja Rudus Group sales in 2006 were over ? 370 million with operations in over 200 locations in Finland, Estonia, Latvia and Russia (St. Petersburg) with personnel of 1,400.

Jan 2007 - present Senior Advisor and Board Member of a number of Finnish companies operating in the beer and other beverages, electronics, printing and publishing, healthcare, real estate and building materials sectors.