OREANDA-NEWS. July 12, 2012. OJSC Mostotrest (“Mostotrest” or the “Company”, and together with its consolidated subsidiaries, the “Group”; MICEX-RTS ticker: MSTT) today announced the Board of Directors’ decision to acquire 60% of CJSC Natsionalnaya Industrialno-Torgovaya Palata (“NITP”), a road repair and maintenance company, for RUR510 million payable in cash.

NITP is a servicing company specialized in maintenance and repair, including road markings and general overhaul of roads and bridges. As at 31 December 2011, NITP’s backlog was RUR1.4 billion (excluding VAT).

This transaction corresponds to Mostotrest’s strategy aimed at diversification into related business segments to respond to the market, which has been evolving towards full life cycle and road operating contracts. Among others, the Group will utilize NITP's road maintenance and repair competencies under such contracts as operation of M-4 Don Highway toll segment and full life cycle projects for an M-4 Don Highway segment as well as the Vyshny Volochok Bypass. In addition, NITP provides a good platform for the Group to participate in upcoming life cycle project tenders including road maintenance and repair.

The transaction is expected to be closed before the end of July 2012.

Vladimir Vlasov, CEO of Mostotrest, comments: “We have been increasingly involved in complex infrastructure projects, including full-cycle contracts and operating contracts. This is a relatively new concept in Russia that requires the general contractor to have not only an impeccable reputation but also an appropriate managerial and technical expertise in many areas of transport infrastructure construction including road maintenance and repair. The acquisition of NITP will provide us with a good platform to participate in long term life-cycle projects with our own in-house repair and maintenance capacity.