Etalon to Announce Q4 2011 Operating Results

Etalon Group EGM Approves GDR Purchase Programme

Etalon Group Limited announces revised date for extraordinary general meeting of the Company regarding proposals for a GDR purchase program of up to 9.25 per cent. of its issued share capital

Etalon Group Limited (LSE: ETLN) (the "Company"), one of Russia's largest and oldest residential real estate developers, announced on 28th October 2011 a proposed purchase program of Global Depositary Receipts ("GDRs") representing Ordinary Shares of the Company of up to 9.25 per cent. of the Company's issued share capital (the "Proposed Program").

The Proposed Program will not involve any offers to purchase or purchases of GDRs being made in the United States or from US persons.

The general meeting of shareholders referred to in the 28th October 2011 announcement, previously scheduled for 14th November 2011, will now be held on 23rd November 2011 (the "EGM").

As noted in the 28th October 2011 announcement, a shareholder circular with details of the meeting and the Proposed Program will be circulated in advance of the EGM.

Etalon Group IR Team

T: +44 (0) 20 8123 1328

E: info@etalongroup.com

M: Communications

Sam VanDerlip

T: +7 495 663 8005

E: vanderlip@mcomgroup.com

About Etalon Group

Founded in 1987, Etalon Group is one of Russia's largest residential real estate developers. The Company operates in both the St. Petersburg and Moscow Metropolitan Areas.

Etalon Group has a strong portfolio focused on large-scale residential complexes, with a dominant position in the "comfort class" (lower middle class and upper economy class) price segment, providing high quality living at affordable prices. The Company's portfolio comprised 28 projects, as of 31st December 2010, with a total of 3.13 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31st December 2010, the Company recorded revenues of RUB 20.3 billion (USD 669 million) and EBITDA of RUB 6.9 billion (USD 227 million), with an EBITDA margin of 34%.

Since 20th April 2011, Etalon Group Limited has had its GDRs traded on the Main Market of the London Stock Exchange.

Etalon Group Limited

Ogier House, St. Julian's Avenue, St. Peter Port, GY1 1WA, Guernsey

This announcement is not intended to, and does not constitute, or form part of, an offer to sell or an invitation to purchase, exchange or subscribe for any securities in any jurisdiction. This announcement does not constitute a prospectus or a prospectus equivalent document.

Renaissance Capital Limited will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for advising any other person on the arrangements in relation to the Proposed Program, or any other matter referred to in this announcement.

This announcement has been issued by, and is the sole responsibility of, the Company. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Renaissance Capital Limited or by any of its affiliates or agents as to or in relation to, the accuracy or completeness of this announcement.

The Proposed Program will not involve any offers to purchase or purchases of GDRs being made in the United States or from US persons.