OREANDA-NEWS. April 7, 2011. Public Joint Stock Company “ARMADA” (“ARMADA” or the “Company”), a group of IT companies focused on high margin Software Development & IT Services businesses (MICEX, RTS: ARMD), today announces its intention to proceed with a share offering (the “Offering”).

The Offering

The Offering is expected to comprise an offering of (i) up to 2,400,000 newly issued ordinary shares (the “New Shares”) offered by the Company and (ii) up to 600,000 existing shares (the “Existing Shares”, together with the New Shares, the “Shares”) offered by Mr. Alexey Kuzovkin and Arsenal Advisor BVI (the “Selling Shareholders”). The Shares are being offered outside the United States and in the Russian Federation to certain institutional investors in offshore transactions within the meaning of, and in reliance on, Regulation S under the U.S. Securities Act of 1933. The Existing Shares have been admitted to trades and listed on quotation list “B” of the the Closed Joint Stock Company “MICEX Stock Exchange” and admitted to trading on the Open Joint Stock Company “Russian Trading System Stock Exchange”, in each case under the symbol “ARMD”. The Offering received all the necessary regulatory approvals, including all the relevant registrations by the Federal Service for the Financial Markets of the Russian Federation.

The Company intends to use the proceeds from the sale of the New Shares to finance selective acquisitions of a number of companies, which are attractively priced and whose businesses are complementary to our own.

VTB Capital is acting as a Sole Global Coordinator and Bookrunner, while Gazprombank acts as a Co-Lead Manager for the Offering.

Commenting on today’s announcement, Alexey Kuzovkin, Chairman of ARMADA, said:

“Today’s announcement represents another important step in the strategic development of our company. Armada is strongly positioned in an industry that is developing rapidly; we have a proven track record of successfully identifying and completing value-accretive acquisitions and continue to identify complementary opportunities that represent highly attractive value propositions for our shareholders. Raising equity capital ensures that we retain strategic flexibility to take advantage of attractive opportunities as they arise in order to drive future growth.”

ARMADA is a Russian group of IT companies, focused on high margin Software Development & IT Services segments of Russian IT market. The company is on the market since 2000 under RBC Soft brand, in July 2007 completed an IPO on Russian Exchanges MICEX and RTS. Armada has considerable experience in implementation of complex projects that are unique in terms of size and methods used, including development of the Electronic Government system in Russia. The Company's revenue in 2010 amounted RUR 3.66bn (USD 122m) and EBITDA RUR 410m (USD 14m), 11.2% EBITDA margin.