OREANDA-NEWS. October 1, 2009. JSC "The Seventh Continent" (hereinafter - the Company) hereby announces two irrevocable offers to buy its bond, series 2 on October 15, 2009 and May 18, 2010.

On September 25, 2009, the Board of Directors of the Company approved two offers with regard to the Company's bond, series 02 as follows:

on October 15, 2009 the Company will redeem 20% of bonds, series 02 from holders, who on June 23, 2009 have accepted the Company's buy-back offer announced on June 14, 2007. The terms and conditions of the irrevocable offer dated September 25, 2009 provide that holders who accept it, thereby confirm that the Company does not have any obligations to them under the offer dated June 14, 2007 (i.e. Agreement dated June 23, 2009, concluded by way of accepting the Company's offer dated June 14, 2009 is deemed terminated together with all obligations thereunder).;

on May 18, 2010 the Company will redeem the remaining outstanding bonds of series 02. The redemption price is set at 107.81% of par value, which results in 16% p.a. yield to maturity for bondholders.

Recently the Company and the agent on restructuring (Open Joint-Stock Company "MDM Bank") have carried out activities aimed at restructuring of the Company's obligations to buy back bonds on June 23, 2009 in accordance with terms of irrevocable offer dated June 14, 2007. As of June 23, 2009 the Company has reached agreements with bondholders who held 73% of the total bonds in issue. As of today, the share of restructured bonds exceeds 85% of the total issue size.

The larger part of the bonds of series 02 still outstanding is held by pension funds, which are unable to accept the general restructuring terms offered by the Company due to regulatory limitations imposed on their activities in the securities market.

The Company's new proposal to announce two irrevocable buy-back offers is tailored specifically for pension fund managers and takes into account existing legislative limitations and requirements.

Taking into account the share of the restructured bonds and the expected effect of the two new irrevocable offers approved by the Company's Board of Directors on September 25, 2009, the Company plans full execution of its liablilities before bond holders. The Company expects that the total amount of unsettled obligations will not exceed 1% of the total amount of the bond issue.

5-year bond, series 02 totaling RUR 7bn was placed on June 21, 2009 through open subscription on MICEX. Coupon rate for the first six coupon periods was set at 7.8% p.a., corresponding to a payout of RUR 38.89 per bond. The bond pays coupon semi-annually.