(LONDON, 26 August 2008) - PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, today announced its expansion into a further new city in Russia’s regions with the acquisition of a major land plot in the city of Krasnodar.

The total area acquired is around 24 hectares on which PIK plans to develop approximately 250,000 sq. meters by the end of 2013, including mass market housing and commercial real estate. Developer of the project will be PIK-Kuban, a subsidiary of PIK Group with operations in Krasnodar Region.

PIK considers the Southern Federal district of Russia to be a strategically important area for development activity and the Group began operating in the Krasnodar Region in 2006. In total, as of January 1 2008, the total lank bank in Krasnodar Region accounted for approx. 761,000 sq. meters. This figure comprises two current developments in Krasnodar, namely “Yuzhny Bereg” (PIK share: 752,000 sq. meters, 2013E) on the Black Coast and Cottage Village Myshako (PIK share: 9,000 sq, meters, completed in 2008) (both situated in the city of Novorossiysk). In 2007 PIK completed

approx. 52,000 square meters of residential housing in the region.

PIK believes that Krasnodar Region, where the Winter Olympic Games are planned for 2014, will be a key development area in the coming years.