On 16 July, LSR Group executed the first stage* of put option on its third domestic bond issue of Series 02. LSR-Invest LLC, a 100 percent subsidiary of OJSC LSR Group and a formal issuer of this series of bonds, bought back the issue after the end of the fourth coupon period. A total of  2,967,858  bonds with a nominal value of RUB 1,000 each were bought back at the request of bondholders

In addition, the company made the fourth coupon payment of RUB 123,670,800 in full volume.

It is the third bond issue of LSR Group that was placed in July 2007 in the amount of RUB 3 billion. A total of 3 million bonds were issued, and at the time of the first stage of put option there were 2,970,000 bonds being traded in the market.

Elena Tumanova, Chief Financial Officer of LSR Group commented:

“We adequately assessed the current situation in the debt market and were prepared well in advance that the put option for the whole amount of the bond could be executed. Moreover, our financial plan from the very beginning provided for the execution of the put options for all our outstanding bond issues. This approach helps us to prepare the refinancing sources far in advance.

We are convinced that a stable and reliable company should not allow the default on its liabilities. It is a matter of our business reputation that is of great importance for us.”

*In accordance with the prospectus the put option is exercisable in two stages:

First stage –  16 July – for bondholders who applied from 7 to 13 July

Second stage – 27 July – for bondholders who applied from 13 to 16 July.