OREANDA-NEWS. On 05 June 2008 LSR Group, a leading real estate developer and building materials producer in Russia, announces that, on 3 June, 2008 the first deadline provided for in the offer of OOO LSR-Invest Series 01 bonds was successfully passed. No bonds were presented for LSR Group to buy back at the request of their holders.

Elena Tumanova, Chief Financial Officer and member of the Board of Directors of LSR Group, has commented as follows:

“In my view, the very fact that no bonds have been purchased in the offer while the financial markets situation is far from being simple means that the debt securities of LSR Group are perceived by the investment community as reliable and yield-generating financial instruments.”

It may be noted that OOO LSR-Invest is a 100% subsidiary of OJSC LSR Group and was founded specifically for the purpose of raising funds for the Group’s companies.