OREANDA-NEWS. September 7, 2010. Sistema-Hals (LSE, MICEX, RTS: HALS), one of the largest real estate development companies in Russia and the CIS, announces its unaudited consolidated financial results for the first 6 months of 2010 in accordance with US GAAP.

FINANCIAL HIGHLIGHTS FOR THE FIRST 6 MONTHS OF 2010

• For the 6 months ended June 30, 2010 the revenues of Sistema-Hals and its subsidiaries ("the Group") amounted to USD 14.3 mln. compared to USD 37.5 mln. for the 6 months ended June 30, 2009.

• For the 6 months ended June 30, 2010 the operating expenses of the Group increased by 137.4% to USD 152.9 mln. compared to USD 64.4 mln. for the same period last year.

• For the 6 months ended June 30, 2010 the negative OIBDA amounted to USD 127.4 mln. compared to the negative OIBDA in the amount of USD 18.4 mln. for the first half 2009.

• For the 6 months ended June 30, 2010 the operating loss of the Group amounted to USD 138.5 mln. compared to the operating loss of USD 26.9 mln. for the 6 months ended June 30, 2009.

• The net loss of the Group amounted to USD 243.6 mln. for the 6 months ended June 30, 2010 compared to the net loss of USD 110.8 mln. for the same period in 2009.

• As of June 30, 2010 the total assets decreased by 0.5% to USD 1,210.7 mln. compared to the total assets in the amount of USD 1,217.3 mln. as of December 31, 2009.

In July 2009 the Group sold its 100% stake in ZAO City - Hals (the managing company of facility management segment) to AFK Sistema. As a result of this operation as of June 30, 2010 the Group has a single reporting segment - real estate development.

Financial results of the disposed segment are presented separately on the face of unaudited consolidated financial statements for the 6 months ended June 30, 2009 as discontinued operations.