OREANDA-NEWS. September 28, 2011. Globaltrans Investment PLC (together with its consolidated subsidiaries "Globaltrans" or the "Group"; LSE ticker GLTR) today announces that, in light of current uncertainty in global financial markets, it has decided not to participate in the public auction of 75 percent minus two shares of OJSC Freight One (“Freight One”).

The Group has taken this decision on the basis of a detailed analysis of Freight One including a comprehensive valuation of potential efficiency gains. While the Group has already structured and negotiated a preliminary financing package for the acquisition and believes Freight One has good prospects, due to global financial conditions, the Group has decided not to proceed with an offer. In line with Globaltrans’ strict adherence to principles of prudent financial management, the Board of Directors considered the significant leverage associated with the potential transaction excessive in the current economic environment.

The Group will continue to focus on the further development and growth of its business given the fundamental attractiveness of the Russian freight rail transportation market and its outlook. Globaltrans’ business model and strong balance sheet provide a solid base to pursue the Group’s growth strategy by means of railcar purchases as well as exploiting opportunities presented by the upcoming liberalisation of the locomotive traction market and by ongoing consolidation in the industry.