OREANDA-NEWS. March 11, 2008. Cherkizovo Group OJSC (LSE ticker: CHE LI), one of Russia's leading integrated and diversified meat producers, announces today the acquisition of a further 28,212 hectares of agricultural land in the Tambov region.  The acquisition of this land is in line with the Group's stated strategy to be the leading player in the Russian meat production market and to create substantial additional value for its shareholders.

Highlights:

The acquired land is situated in the "Black Earth" farming region, generally known as a centre of agricultural industry in Russia due to the quality of land in the region and other favorable natural conditions, and is part of a green field agricultural project with the Tambov Region Administration (TRA).  This land is attractively located close to the Group's industry leading Tambov and Lipetsk pork production complexes.

The Company believes that the acquisition of the land provides significant strategic benefits for the Group, including the possibility of being able to secure, potentially on a long-term basis, feedstock at a lower cost.  The Group is in discussions with NAPKO, a specialist crop raising company, to lease part of this land to NAPKO and purchase feedstock from them.  The acquisition of the land is also in line with the Group's objectives to generate attractive returns on invested capital"], including by leasing out unutilised land to other agricultural farming concerns.  Management believes that the acquired land also has significant potential to increase in value.

Igor Babaev, Chairman of Cherkizovo Group, said:

"We are delighted to have acquired this land in the Tambov region. This project is fundamental to the Group's strategic development programme and will, we believe, create significant shareholder value.  We look forward to working with the TRA to develop this land and deriving the long-term strategic and financial benefits from this acquisition."