Joint Stock Company Open Investments (JSC “OPIN” or the “Company”) is pleased to announce its financial results for the year ended 31 December 2008. According to the consolidated financial statements prepared in accordance with IFRS, equity attributable to the shareholders of the parent company has decreased by 6% since the beginning of the year to US$2.6 billion as of 31 December 2008. Total assets has increased by 5% in comparison with the beginning of the year and reached US$3.6 billion as of 31 December 2008.

The decrease in the shareholders equity in 2008 was driven by:

• the losses as a result of the assets depreciation due to market revaluation of some projects of the Company;
• the losses from the foreign currency liabilities revaluation;
• the increase of the operation and management expenses in comparison with 2007.

In comparison with 2007 the revenue has increased by 72%, reaching US$ 283 million, which is the best financial result of the Company to date. Gross margin has increased by 42% in comparison with 2007, reaching US$ 87 million.

As part of the strategy JSC “OPIN” announces the completion of its land acquisition program in 1H 2009, by which the Company acquired land in large parcels as well as, in some cases, smaller parcels in prime locations. As of today the Company owns approximately 33 000 ha of land plots.

The Company may retain this land for use in future residential, commercial and integrated developments. The Group may hold some plots for capital appreciation purposes from potential increase in the land value.

To finance its current operating activity, maintain the necessary level of liquidity and service the outstanding debt liabilities, JSC “OPIN” in the 1H 2009 has arranged a number of asset disposal deals with partner companies of the Holding Company Interros (ZAO). As a result, some of the Company’s assets were disposed on market terms, including projects “Large Zavidovo”, “Lukino”, “Pavlovo Podvorye Retail and Entertainment Complex together with the complex of social and engineering infrastructure of “Large Pavlovo”, Meyerhold Business Centre and Novotel Moscow Centre Hotel, and separate land plots on the Yaroslavskoe Highway.

In the near-term the Company plans to focus its efforts on the development of the projects that are close to completion of development (including without limitation Pavlovo 1, Pavlovo 2, Martemianovo, Pestovo, Domnikov Business Centre). If the further market deterioration continues, the Company may sell some of its others assets.

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

“In the first half of 2008 the Company has demonstrated confident growth, successfully realizing its activity in accordance with adopted strategy.

In the second half of 2008 the rapid economic growth, which developed during the last few years in Russia, has changed to the world economic and financial crisis. The real estate sector within a short period of time has suffered the consequences of the crisis which further resulted in limitation of available funding sources and the significant decline in a business activity of the customers (buyers and tenants).

With the crisis the Company was forced to reconsider its further development strategy and the projects completion terms. We implemented the crisis management plan, which at the same time concentrated on costs reduction efforts and mobilization of financial and organization resources towards the projects, which are close to completion.

We are quite satisfied with the first results of our crisis management program, that itself demonstrates that we move in the right direction and also creates the basis for further development of the Company”.

The audit of consolidated financial statements was conducted by the international audit and consulting company Deloitte, who has been the auditor of JSC “OPIN” since 2002.

Consolidated financial statements prepared in accordance with IFRS are available on the web site at the following address: https://www.opin.ru/.