OREANDA-NEWS. November 10, 2010. Sistema-Hals (LSE, MICEX, RTS: HALS), a major Russian real estate company, announces its net loss for the 2nd quarter of 2010 amounted to 664 959 thousand rubles vs. 954 604 thousand rubles as of the 3rd quarter of 2010. The growth of the net loss by 43,56% is a result of increase of the costs for the bank interest payments as well as termination of some contracts for performance of developer's function, conservation of some projects, etc.

Sistema-Hals JSC net loss in 2Q 2010: 664 959 thousand rubles

Sistema-Hals JSC net loss in 3Q 2010: 954 604 thousand rubles

Absolute change of the Issuer's net loss amount: - 289 645 thousand rubles

Relative change of the Issuer's net loss amount: - 43,56%

The figures are counted according to the Sistema-Hals JSC report prepared under RAS, are disclosed according to the Russian legislation and do not characterize the operation of the whole group of Sistema-Hals companies.

Sistema-Hals ("the Company") is one of the leading diversified company in the Russian and CIS real estate market.

The Company was the first Russian property developer to list its shares on the main market of the London Stock Exchange. The Company's shares are also listed on the Moscow Interbank Currency Exchange and the Moscow Stock Exchange and the Russian Trading System Stock Exchange.

Main shareholders of Sistema-Hals are Bank VTB (51.24%) and AFK "Sistema" (27.6%); free float is about 18%.

Starting operations in 1994, Sistema-Hals has successfully completed about 40 projects with a total area over 450,000 square metres, including several residential complexes in Kuntsevo, the headquarters of the DaimlerChrysler company, the Hals Tower office building, the headquarters of the Trubnaya Metallurgical Company, the hotel for the MaMaison chain (Orco Property Group).

Sistema-Hals implements the development of the Leningradsky Towers complex in Moscow; carries out the complex program of redeveloping the facilities of the Moscow City Telephone networks; reconstructs the building of the Central "Detsky Mir" on Lubyanka, constructs LETO shopping center in Saint Petersburg and fulfils several other projects.

Sistema-Hals has assembled a balanced and diversified portfolio of assets in fast-growing sectors of the market. The Company's strategy is focused on building Class A and B office space, multifunctional retail and office complexes, business-class residential buildings.