(LONDON, 1 December 2008) - PIKGroup(LSE: PIK), one of Russia’s leading residential real estate developers, today announces that it has reached agreement  with Vnesheconombank (“VEB”), a state-owned Russian Bank, to refinance US$262m of short-term debt. The new loan has a maturity of one year.

The refinancing has been secured within the framework of government action to support major Russian companies through the current liquidity crisis.

Kirill Pisarev, PIK Group CEO comments:

“Residential housing is a strategically important sector of the economy and we are pleased that the government is providing funding to key industry players like PIK during this unprecedented financial crisis.”

Enquiries:

Investors
PIK Group	Tel: +7 495 505 97 33 ext. 1358
Viktor Szalkay
Media
PIK Group	Tel: +7 495 2321122
Natalia Konovalova
Citigate Dewe Rogerson	Tel: +44 20 7638 9571
Tom Baldock
Lindsay Noton

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of PIK. You can identify forward-looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK’s projections or forward-looking statements, including, among others, general economic conditions, PIK’s competitive environment, risks associated with operating in Russia, rapid technological and market change, and other factors specifically related to PIK and its operations.