OREANDA-NEWS. On 20 August 2008 LSR Group, one of the leading real estate developers and building materials producers in Russia (LSE: LSRG, MICEX, RTS: LSRG), announced that it has completed the acquisition of four companies in Yekaterinburg: ZAO NOVA-Stroy, the major real estate developer in the local market; OOO SMU NOVA-Stroy, the largest construction contractor; OOO PKU NOVA-StroyProekt design office; and OOO Uralscheben, a leading crushed stone producer.

LSR Group holds a 100% stake in the authorized capital of each of the aforesaid companies*.

The transactions were approved by the Board of LSR Group on 26 June 2008 and 15 July 2008.

LSR Group has created LSR Urals Management Company (OOO UK LSR Urals) in Yekaterinburg to manage the newly acquired assets.

LSR Group entered the construction market in Yekaterinburg at the end of last year and has acted quickly to implement its strategy, currently owning land plots of over 60 hectares where the Group is planning to develop new economy class residential neighbourhoods. The company also owns approx. 87% of the shares of OJSC Betfor Reinforced Concrete Factory, Yekaterinburg’s largest prefabricated construction company and producer of reinforced concrete, ready-mix concrete and aerated concrete.

*LSR Group has 100 percent control of OOO SMU NOVA-Stroy via ZAO NOVA-Stroy (100% of the authorized capital of OOO SMU NOVA-Stroy is held by ZAO NOVA-Stroy).