OREANDA-NEWS. On 05 March 2008 was announced, that the extraordinary general meeting of shareholders of JSC RTM approved, by way of absentee voting the decision of the Board of Directors to increase the Company's registered capital by means of an additional issue of 87,804,880 ordinary registered uncertified shares having a par value of 0.001 rubles per share.

In conformity with the Russian law, the issue of additional shares of JSC RTM will be carried out in two stages. At first, the existing shareholders will be able to exercise their preemptive right to purchase the shares in quantities that are in proportion to the number of shares of this type they currently hold. Following that, the shares will be floated for public subscription.

The list of shareholders with the preemptive right to purchase the additional shares was compiled as of January 21, 2008. Under Russian law, the preemptive right may be exercised within at least 20 days from the date of announcement of an opportunity to exercise the preemptive right.

According to the decision of the extraordinary general meeting of shareholders of JSC RTM, the issue price of the additional ordinary shares cannot exceed $2.05 per share. The issue price of the shares offered to the preemptive right holders shall not be more than 10% lower than the price of the additional ordinary shares offered to other purchasers.

“The raised funds will be used for current and new projects' financing as part of Company expansion strategy — stresses General Director of JSC RTM Eduard Vyrypaev. — Moreover, we meet and will keep meeting the commitments given to our investors within our current strategy. The development of shopping and entertainment centers in Russian regions remains in our focus and all the projects planned in this area will be implemented. At the same time we see the potential of other segments in the regional real estate market which can contribute to our profitability growth and business diversification e.g. complex territory development including shopping and entertainment complex and residential areas as well as mixed-use projects that comprise commercial, hotel and residential real estate“.

“Although the shares are floated for public subscription, first of all the issue of additional shares is focused on exercising of the preemptive right by JSC RTM's existing shareholders – so called Rights Issue in the foreign practice", — said Deputy General Director for economics and finance of JSC RTM Alexei Seleznev.

In addition, the extraordinary general meeting of shareholders discussed termination of powers of Yu.A. Gerasimov as the person acting in lieu of the Company's Counting Commission, and elected the members of the Counting Commission.

As a result of the absentee vote, the general meeting terminated the powers of Mr. Yuri Gerasimov as the person acting in lieu of the Company's Counting Commission and elected the Company's Counting Commission composed as follows:  Mr. Yuri Gerasimov  Ms. Anna Odintsova  Mr. Gennady Zaharov

The final results of the shareholders' meeting will be summed up within 15 calendar days from the date of the meeting.

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