OREANDA-NEWS. On October 10, 2007 LSR Group ("LSR" or the "Group"), one of the leading real estate developers and building materials producers in the St Petersburg and Leningrad region, announced its intention to list global depositary receipts ("GDRs") representing its ordinary shares on the London Stock, reported the press-centre of LSR Group.

Exchange in connection with an offering (the "Offering") of existing ordinary shares ("shares") and GDRs by certain of LSR’s shareholders.

The Global Offering
The Offering is expected to comprise an offering of shares and GDRs to institutional investors outside of the Russian Federation and an offering of shares in the Russian Federation. LSR’s existing ordinary shares have been admitted to list "I" on the Moscow Interbank Currency Exchange and the Russian Trading System Stock Exchange.The Offering is subject to receipt of all necessary regulatory approvals, including the relevant registrations and approvals by the Russian Federal Financial Market Service and the UK Financial Services Authority. The principal purpose of the Offering is to enable the Group to undertake a capital increase following the Offering through a closed subscription for newly-issued ordinary shares, for which certain selling shareholders intend to subscribe using proceeds from the Offering.

The Group intends to use the proceeds of this capital increase to fund its growth strategy, through the expansion and development of its real estate portfolio and the modernisation of its plant and equipment, including the construction of new brick, cement and aerated concrete production facilities, as well as for general corporate purposes.

Deutsche Bank is Global Coordinator for the Global Offering. ABN AMRO Rothschild, Credit Suisse and Deutsche Bank are Joint Bookrunners and URALSIB Financial Corporation is Co-Lead Manager.

Commenting on today’s announcement, Igor Levit, CEO of LSR, said:
"We represent a unique business model in Russia, with our integrated combination of market leading businesses in real estate and building materials. Our leadership in St Petersburg and the wider Leningrad region of Russia ideally positions us to benefit from rapid growth in that area, as well as giving us a platform for expansion throughout other regions in Russia and into the commercial real estate segment."