OREANDA-NEWS. May 15, 2009. PIK (LSE: PIK), a leading Russian residential developer, today announces its financial results for the year ended 31 December 2008, based upon audited consolidated IFRS accounts.

Financial Summary

• Revenues dropped by 38.0% to USD1.43billion (2007: USD2.31billion);

• Revenues from sale of real estate activity decreased by 52,6% to USD0,93billion (2007: USD1,97billion), while consolidated gross profit margin shrank by over 4% down to approximately 26% (2007: 30%);

• Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 213,7% to approximately USD(1.06)billion (2007: USD937million),

• Substantial impairment losses upon PP&E, goodwill, development rights and inventory write downs of USD967 million (2007: nil) were recorded;

• Adjusted EBITDA from development activities before accounting for impairment losses and sales of development rights decreased by 78,3% to approximately USD124 million (2007: USD 571million),

• Normalized net loss for the year was USD 167million (2007: net profit of USD 329million);

• Normalized loss per share amounted to USD 0,34 (FY07: net profit per share USD0,69);

• Total assets as of December 31 2008 decreased by 5,8% and reached USD4,85billion (2007: USD5,15billion);

• Net tangible assets per share as of December 31 2008 amounted to approximately D5.2 (2007: USD6.01);

• Total debt as of December 31 2008 has not changed significantly and amounted to USD 1,37 billion (2007: USD 1,41billion)

• Net debt as of December 31 2008 amounted to USD1,26 billion (2007: USD718million);

Kirill Pisarev, CEO of PIK comments:

“The global economic crisis impacted Russia heavily, in particular cyclical industries like real estate, and the liquidity shortage together with falling consumer confidence has had a severe impact on our business. Looking ahead, the economic outlook is still uncertain and substantial challenges lie ahead. We believe that the next twelve months will continue to be difficult for the Russian economy and for Russian real estate developers.

Longer-term, the fundamentals for our business remain unchanged. There is a shortage of affordable residential housing, an undeveloped mortgage market and a large obsolete housing stock in Russia. These will be the key drivers for PIK Group as the economy recovers.”