LSR Group (“LSR” or the “Group”) one of the leading real estate developers and building materials producers in St Petersburg and the Leningrad region (LSE: LSRG, MICEX, RTS: LSRG), announced today that has fully repaid its first of three bond loans.

The first issue of bonds worth 1 billion roubles was placed in March 2005, managed by FC Uralsib and VTB North-West. The interest rate was originally established at 14% and subsequently dropped to 10% two years later. The yield paid on all of the six coupons of the bonds issued has totaled 302,354,465.98 roubles.

LSR Group also placed a second 2 billion roubles loan in December 2006 with one of the lowest rates for the bond market of Russian construction companies at the time of placement – 10.7%. Currently, LSR Group has paid a total of 213.4 million roubles as the yield on the first two coupons of Series 01 bonds.

In July 2007, LSR Group placed a third bond loan for the amount of 3 billion roubles setting a record-beating low rate for the construction and property development sector (8.35% in roubles), compared to 9% for construction companies. On January 17, 2008 LSR Group paid the yield on the first coupon of Series 02 bonds in the amount of 124.92 million roubles.

Both above-mentioned loans have been placed by OOO LSR-Invest, a 100% subsidiary of LSR Group founded specifically to raise funds for LSR Group companies.