OREANDA-NEWS. February 29, 2008. (PIK (LSE: PIK), a leading Russian nationwide residential property developer, today publishes an update to the market regarding housing completions for the year ended 31 December 2007.

Summary:

• Strong growth in housing completions for 2007, demonstrating PIK’s ability to render large scale housing volumes throughout Russia

• Continued diversification into Russia’s regions, in line with our strategy

• Regional completions increased by 131.8% and now accounting for 24.0% share of total
(2006: 12.8%)

• Fall in volume, as anticipated, of Moscow completions and lower margin construction services rendered to Moscow city government

• Rapid expansion of the Group’s land bank in 2007 and early 2008, with over 7.8m square meters of estimated net saleable space added; 94% of the new land is situated outside Moscow city with 80% located in Russia’s regions

• Cash and equivalents as of December 31 2007 as per management accounts amounted to USD687m (FY06: USD43m), while corresponding net debt totaled USD659m (FY06: USD869m)


The latest available independent appraisal report by CB Richard Ellis is dated January 1 2007, and values our land bank at $8.8 billion for 8.8m square metres of unsold net saleable space. CBRE will be providing a revised independent appraisal of the total portfolio as of 1 January 2008 in May this year, The Group will also publish its full audited results for the year to 31 December 2007 in May. It should be noted that discussions are ongoing with CBRE regarding the inclusion or otherwise of some land plots acquired in 2008 and certain others where plot acquisitions were phased over 2007 and 2008.

Looking ahead, we believe that the fundamentals of the Russian residential real estate market remain sound and we expect good growth over the coming year. The strength of our national geographic spread, mass market focus combined with our entire neighborhood development approach leave us well placed to deliver continued growth.