Revenues increased 81%, Net Profit more than doubled

Joint Stock Company “Open Investments” (JSC “OPIN” or the “Company”), the Moscow-based real estate development and investment company announces its financial results for the first six months of 2008, based on interim consolidated financial statements prepared in accordance with IFRS. According to the consolidated financial statements prepared in accordance with IFRS, equity attributable to the shareholders of the parent company has increased more than 31% since the beginning of the year, exceeding US$3.6 billion as at 30 June 2008. Total assets have grown more than 38%, exceeding US$4.8 billion as at 30 June 2008.

The growth in both assets and equity was mainly driven by:
•  The additional share issue completed in June 2008;
•  Strong growth in the market value of assets;
•  Profit from current projects including “Pavlovo”, “Pestovo”, “Martemianovo”, the class A office centre “Meyerhold” and the Novotel Moscow Centre Hotel.

First half 2008 revenue has grown more than 81% over the same period in 2007, exceeding US$151 million, and net profit attributable to the shareholders of parent company grew more than 138% to more than US$90 million. The revenue growth is mainly due to increase in house sales in lifestyle communities “Pestovo” and “Pavlovo”, and sales of prefabricated houses of Viceroy Homes Limited, Canada (“Viceroy”) - the Company acquired 61% equity interest in Viceroy in February 2008.

OPIN’s financial statements have been audited since 2002 by the international auditing and consulting company Deloitte.

Sergey Bachin, General Director of JSC “OPIN”, commented:

“In the first six months of the year, JSC “OPIN” has enjoyed strong growth in asset values, revenue and profit. This growth is the result of both the strong performance of existing projects and of the expansion of the company’s land bank. During the first half, the Group acquired over 6,400 hectares of land and, as of 30 June 2008, our current land bank exceeded 12,000 hectares, which is more than double the figure at the start of the year. OPIN has built a sizeable land bank with a long-term development potential in prime locations in the Moscow and Tver Regions.

This will allow OPIN to implement large-scale integrated territory development projects that entail development not only of various categories of property, but also of a highly developed social and recreational infrastructure. Key amenities will include public park areas, shopping and entertainment centres, schools, playgrounds, childcare facilities, supermarkets, restaurants, fitness centres within the residential development itself, or in close proximity. Within the framework of these projects certain areas will be allocated for the construction of business and office centres for various companies including high tech and research and development, meaning residents in these communities will not need to waste time commuting to work in Moscow.

These large-scale integrated developments will allow residents to combine modern low-density living in a socially homogeneous environment, convenient infrastructure, friendly ecological conditions, and good transportation access to Moscow, thus providing our customers with a quality lifestyle not typically found within the Moscow city limits. We believe that these lifestyle communities will make residential developments more attractive to potential purchasers, and will target not only deluxe, but also affluent middle and mass-middle class.

I would also like to mention the success of the additional issue of shares completed in June 2007, raising approximately US$491 million.”