OREANDA-NEWS. June 27, 2008. Open Joint Stock Company Razgulay Group ("Razgulay" or the "Company") announced its intention to proceed with an offering of new shares (the "Shares"), the issuance of which was registered with the Federal Service for Financial Markets on 10 June 2008, reported the press-centre of Razgulay Group.

The Shares will be offered in the Russian Federation, in certain jurisdictions outside the Russian Federation under circumstances not constituting an offer to the public in such jurisdictions, and outside the United States in reliance on Regulation S of U.S. Securities Act ("Offering"). It is expected that the Offering will be completed by September 2008.

Currently, the Company expects to proceed with the Offering of approximately half of the total registered amount of 70 million Shares.

The Shares are included in “B” list on Russian Trading System (RTS) and Moscow Interbank Currency Exchange (MICEX) where the Company currently trades under the symbol "GRAZ". Existing shareholders as of 17 March 2008 are granted pre-emptive rights in line with applicable Russian legislation. Mr Igor Potapenko is the Company’s ultimate majority shareholder controlling approximately 62% of share capital and does not currently intend to exercise any preemptive rights.

The Company intends to use the proceeds from the Offering to finance its growth plans for the business and repay part of its outstanding indebtedness and, in particular, to fund potential acquisitions of agricultural land, to acquire agricultural machinery and to modernise production and processing facilities.

JPMorgan and Renaissance Capital are acting as Joint Global Coordinators and Bookrunners on the Offering.