OREANDA-NEWS. On 21 July 2009 was announced, that Mr. Valeriy Korotkov was heading OAO ITERA-Invest-Stroy as its CEO and, in this capacity, was generally in charge of urban development business held by ITERA International Group of Companies. On May 25, 2009 Mr. Korotkov was removed from his office.

ITERA, in compliance with applicable laws, is currently making efforts to restore the management of the Group's urban development assets disturbed by the dispute with companies controlled by Mr. Korotkov.

As of today, we have not obtained any agreements signed by Mr. Korotkov and approved by ITERA Group with respect to control and management of the urban development assets.

ITERA is expressly interested in expanding its urban development business and implementing the Group's projects in this field.

ITERA's management does not recommend making any deals with the real estate assets held by OOO Avtokombinat No. 3, ZAO RURikon, OOO MTM-Stroy, ZAO Daison Service (Pavlovy Ozera) or acquiring shares in equity (authorized) capital or these entities until the issues with the disputed assets are settled.