LSR Group, a leading real estate developer and building materials producer in Russia (LSE: LSRG; MICEX, RTS: LSRG), announces that yesterday, on 17 June 2008, the 2nd deadline provided for in the offer of OOO LSR-Invest Series 01 bonds was successfully passed upon the expiry of the third coupon period. No bonds were acquired as no requests were made under the offer by bond holders.

It may be noted that this is the second bond issue of LSR Group placed in 2006 for the amount of RUB 2 billion. The bond coupon rate as of the time of placement was one of the lowest for bonds issued by Russian construction companies, 10.7%.

Notes to editors:

OOO LSR-Invest is a 100% subsidiary of OJSC LSR Group and was founded specifically for the purpose of raising funds for the Group's companies.

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

LSR Group has operations and offices in a number of cities in the Leningrad Oblast, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs over 15,000 people.

In 2005 and 2006, the revenues of LSR Group (according to IFRS statements) were $ 463 million and $ 777 million respectively. In 2007, the revenues amounted to $ 1,403 million.

In November 2007, OJSC LSR Group implemented an IPO, and now its GDRs are listed on the London Stock Exchange, and the shares — on MICEX and RTS.

LSR Group has a B1 rating, outlook — stable assigned by Moody's Investors Service (assigned in July 2007 and confirmed on May 30, 2008), and a B+ rating, outlook — stable assigned by Fitch Ratings (assigned on May 30, 2008).

In 2007, LSR Group was bestowed a National Award in the field of business as 'The Company of the Year' in the 'Construction' category.