Etalon Group Reports 1Q 2012 Operating Results, Obtains Construction Permit & Launches Sales for Lastochkina Gnezdo

St. Petersburg – Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and oldest residential real estate developers, announces its unaudited operating results for the three months ended 31 March 2012 based on management accounts.

1Q 2012 Highlights:

• New contracts sales during 1Q 2012 reached 78 thousand sqm and RUR 5.6 billion, a year-on-year (y-o-y) increase of 30% and 34%, respectively
• Share of mortgage deals reached 10% vs. 6% in 1Q 2011
• Average down payment increased to 72% vs. 66% in 1Q 2011
• Share of contracts in the Moscow Metropolitan Area (“MMA”) reached 14%
• Share of regional sales at a strong 34%
• Continued robust pre-sale levels for buildings planned for delivery in 1H2012: Orbit 86%, Prestige 51%, Etude 86%*
• Obtained construction permit and launched sales on Lastochkino Gnezdo project, the second largest project on sale in St. Petersburg with 319 thousands sqm of NSA. The project demonstrated phenomenal sales growth with 22% of the floor space* of the first building contracted at the date of the release.
• Solid growth in new contract sales expected in 2012, to increase by 25% up to 337 thousands sqm

* For all: excluding parking

1Q Operating Results

Quarterly Summary

Commenting on the 1Q 2012 results, Etalon Group President Viacheslav Zarenkov said:

“In the first quarter we contracted 78 thousands sqm, demonstrating 30% growth in sqm and 34% in rouble terms, even though we were coming off a strong base in 1Q 2011. While this is a solid result, we are still behind pre-crisis levels, which reached 107 thousands sqm in the first quarter of 2008 in St. Petersburg alone.

“We are pleased that the share of mortgage sales has reached 10%. This is in large part thanks to our ability to offer our customers joint programmes with 17 major domestic and international banks, including Sberbank, VTB Group, Rosbank (Societe Generale), Absolutbank (KBC Group) and Raiffeisen Group. At the same time our exposure and risk to mortgage financing is relatively small, primarily due to our flexible pre-sale installment plans, which are more efficient for our customers.

“The average down payment hit a phenomenal 72% in 1Q 2012, significantly above our target of 50%. This has a positive impact on our working capital and is further evidence of rising consumer confidence in Russia's real estate market.

“The share of MMA contracts reached 14%, and is set to increase further as existing projects and new acquisitions start to develop. Last year MMA reached 30% of total deliveries and 45% of our total land bank.

“The share of regional sales is at a strong 34%, above our 30% target. Regional demand remained resilient even during the crisis, and has served as a solid source of cash generation.

“We had exceptional growth in pre-sale levels during the quarter. For the three projects we plan to deliver in 1H 2012, pre-sales levels have reached the following levels: 86% for the second stage of Orbit, 51% for Prestige and 86% for Etude*.

“Growth has continued to be underpinned by two key factors. We have seen a third successive year of rising consumer confidence, combined with a continued shortage in supply, particularly in the comfort class segment in which we operate. After the crisis, we saw a significant change in consumer preferences towards low-risk, financially strong, reputable names in the real estate market.

“We are constantly working to enhance our transparency. Following official guidance on delivery volumes, this year we are initiating guidance on new contract sales. In 2012, we expect new contract sales to increase by 25% and reach 337 thousand sqm.

“We are very pleased to announce that we have obtained a construction permit and launched sales on Lastochkino Gnezdo. With its sizable 319 thousand sqm, Lastochkino Gnezdo is the second largest project on sale today in St. Petersburg, located within our core geographies of the ‘6-7-8 belts’ around the city centre. This is a flagship project for us, and has already demonstrated phenomenal pre-sales rates, with 22% of the floor space of the first building contracted at the day of the release.

“With our dominant position in the comfort class segment, unique price to quality proposition to our customers and USD 490 million** of expansion capital, Etalon is fully equipped to convert pent-up and rising consumer demand into profit for its shareholders.”

* For all: excluding parking

** At 31 December 2011

Conference call and webcast

On Monday, 16 April 2012 at 14:00 London time (17:00 Moscow; 09:00 New York), Etalon will host a live conference call and audio webcast to discuss its 1Q 2012 operating results.

Etalon Group President Viacheslav Zarenkov, CFO Anton Evdokimov, Head of Investments Dmitri Boulkhoukov and Head of Strategy and Business Development Alexander Shkuratov will briefly present the 1Q 2012 operating results and answer questions from webcast and conference call participants. The webcast and conference call details are provided below:

Webcast: http://www.media-server.com/m/p/8aeu9ewo

Conference call dial-ins:

Toll numbers:

London: +44 (0) 20 3003 2666

Moscow: +7 499 272 4337

New York: +1 212 999 6659

Toll free numbers:

Russia: 8 10 8002 1774011 (from Moscow only)

UK: 0808 109 0700

USA: 1 866 966 5335

Conference Call Password: Etalon

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 31 projects, as of 31 December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31 December 2011, the Company recorded revenues of RUB 22.7 billion (USD 774 million) and EBITDA of RUB 8.2 billion (USD 279 million), with an EBITDA margin of 36%.

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

Etalon Group IR Team

T: +44 (0) 20 8123 1328

E: info@etalongroup.com

M: Communications

Sam VanDerlip

T: +7 495 363 2845

vanderlip@mcomgroup.com

Etalon to Announce Q1 2012 Operating Results

On Monday, 16 April 2012 at 14:00 London time (17:00 Moscow; 09:00 New York), Etalon will host a live conference call and audio webcast to discuss its Q1 2012 operating results. The results will be issued in a press release earlier the same day.

Etalon Group President Viacheslav Zarenkov, CFO Anton Evdokimov, Head of Investments Dmitri Boulkhoukov and Head of Strategy and Business Development Alexander Shkuratov will briefly present the Q1 2012 operating results and answer questions from webcast and conference call participants. The webcast and conference call details are provided below:

Webcast: http://www.media-server.com/m/p/8aeu9ewo

Conference call dial-ins:

Toll numbers:

London: +44 (0) 20 3003 2666

Moscow: +7 499 272 4337

New York: +1 212 999 6659

Toll free numbers:

Russia: 8 10 8002 1774011 (from Moscow only)

UK: 0808 109 0700

USA: 1 866 966 5335

Conference Call Password: Etalon

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 31 projects, as of 31 December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31 December 2011, the Company recorded revenues of RUB 22.7 billion (USD 774 million) and EBITDA of RUB 8.2 billion (USD 279 million), with an EBITDA margin of 36%.

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

Etalon Group IR Team

T: +44 (0) 20 8123 1328

E: info@etalongroup.com

M: Communications

Sam VanDerlip

T: +7 495 363 2845

vanderlip@mcomgroup.com

Etalon Group Reports 64% Increase in IFRS Net Profit for FY 2011

St. Petersburg – Etalon Group Limited (LSE: ETLN), one of Russia’s largest and oldest residential real estate developers, today announces its audited IFRS consolidated financial statements for 2011. The Group’s strong financial results for the year reflect the continuing post-crisis market recovery that began in 2010; while operating results remain below pre-crisis levels, market conditions in 2011 and early 2012 underscore further strong performance for the Company going forward.

FY 2011 Financial Highlights:

· Revenue grew on accelerating sales, increasing 16% year-on-year (y-o-y) to USD 774 million from USD 669 million in FY 2010;

· Earnings before interest, taxes, depreciation and amortization (EBITDA) reached USD 279 million, up 23% from USD 227 million in FY 2010; EBITDA margin increased to 36% from 34% in FY 2010;

· Net profit for the year increased 64% y-o-y to USD 253 million;

· Cash and cash equivalents* increased by 281% and stood at USD 490*million at year-end. The increase was primarily due to financing from the IPO, and this trend is expected to reverse as the Company invests into new projects;

· Etalon Group had a net cash and cash equivalents position of USD 167* million at 31 December 2011, and gross debt of USD 323 million with maturities spread evenly between 2012 and 2015.

* includes bank deposits from short term investments (See Note 19 of 2011 audited IFRS financial statements)

FY 2011 Operating Highlights:

• Deliveries increased by 57% y-o-y, including successful expansion into Moscow with 98 thousand sqm of NSA from the first stage of the Emerald Hills project delivered on schedule, contributing to total deliveries for the year of 328 thousand sqm;
• FY 2011 new contract sales, while still below pre-crisis levels, increased 27% y-o-y to 270 thousand sqm and 30% y-o-y to RUR 18,306 mln on the back of a continued recovery in consumer activity;
• The average price for new contract sales in 4Q 2011 increased to RUR 71,718, up 9% compared to RUR 65,994 in 4Q 2010, and up 5% from RUR 68,030 in 3Q 2011;

· Pre-sales launched for 11 new buildings in FY 2011, representing 442 thousand sqm of NSA and expected cash collections equivalent to c. USD 968 million.

Update on Key Projects:

· Acquired three new projects in 2011, which represent a total of 536 thousand sqm of planned NSA: Dmitrovskoye highway in the Moscow Metropolitan Area (MMA), as well as Letniy and Rechnoy in St. Petersburg;

· Strong pipeline of projects currently undergoing due diligence: 5 in the Moscow metropolitan area and 13 in the St. Petersburg metropolitan area;

Etalon Group President Viacheslav Zarenkov said:

“In 2011 we achieved exceptional financial performance, with Revenue, EBITDA and Net Income increasing 16%, 23% and 64%, respectively - significantly ahead of expectations.

“Our EBITDA margin increased to 36% for 2011, which once again demonstrates our ability to extract value from our land bank. I believe this underscores the unique DNA of the Etalon Group offering - our robust vertically integrated platform, nationwide sales network and strong reputation.

“Two key milestones for 2011 were the delivery of our first 98 thousand sqm in the MMA, and the increased share of MMA projects in our total portfolio to 45%.

“In 1H 2008, pre-crisis, we contracted 218 thousand sqm in St. Petersburg alone (c. 440 thousand sqm on an annualized basis). In all of 2011 we contracted 270 thousand sqm in both SPMA and MMA, demonstrating 27% y-o-y growth, yet still well below pre-crisis levels in SPMA and with substantial headroom for further recovery and growth in MMA.

“2012 is off to a strong start and we believe that the recovery will develop further, supporting our cash collections and new contract sales. We have every reason to look towards 2012 and 2013 with confidence, as we plan to launch sales on a total of 10 of the unique projects that we have been fortunate to acquire in both Moscow and St. Petersburg.

“At this stage, we are close to further securing the expansion of our operations for 2016-2019 as we finalise the acquisition of a number of new projects in both Moscow and St. Petersburg. At the same time, our 2012-2014 construction programme remains unchanged and we are fully land bank sufficient through 2016.

“Overall, our balanced debt maturity profile, solid track record and USD 490 million of expansion capital will enable us to continue to acquire high quality projects and provide a perfect growth platform for the years to come.”

Conference Call and Webcast

On Tuesday 20 March 2012 at 14:00 London time (18:00 Moscow; 10:00 New York), Etalon Group will host a live audio webcast to discuss its IFRS financial results for the year ended 31 December 2011.

Etalon Group President Viacheslav Zarenkov, CFO Anton Evdokimov, Head of Investments Dmitri Boulkhoukov and Head of Strategy and Business Development Alexander Shkuratov will present the FY 2011 results and answer questions from webcast and conference call participants.

The dial-in and online viewing details are below:

Webcast link:

http://www.media-server.com/m/p/m2ox9anw

Toll numbers:

+44 (0) 20 3003 2666 – London

+7 499 272 4337 – Moscow

+1 646 843 4608 – New York

Toll free numbers:

8 10 8002 1774011 – Russia (from Moscow only)

0808 109 0700 – UK

1 866 966 5335 – USA

Conference Call Password: Horseshoe

Financial statements

The FY 2011 IFRS condensed consolidated financial statements are available on the Etalon Group website: http://www.etalongroup.com/investors/financial_reports_results_and_presentations/financial_results/

CONTACT DETAILS:

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 31 projects, as of 31December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31December 2011, the Company recorded revenues of RUB 22.7 billion (USD 774 million) and EBITDA of RUB 8.2 billion (USD 279 million), with an EBITDA margin of 36%.

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

Etalon Group (LSE: ETLN) to Host FY 2011 IFRS Earnings

On Tuesday 20 March 2012 at 14:00 London time (18:00 Moscow; 09:00 New York), Etalon Group will host a live audio webcast to discuss its IFRS financial results for the year ended 31 December 2011. The results announcement and audited financial statements will be issued on Monday 19 March 2012.

Etalon Group President Viacheslav Zarenkov, CFO Anton Evdokimov, Head of Investments Dmitri Boulkhoukov and Head of Strategy and Business Development Alexander Shkuratov will present the FY 2011 results and answer questions from webcast and conference call participants.

The dial-in and online viewing details are below:

Webcast-Link:

http://www.media-server.com/m/p/m2ox9anw

Toll numbers:

+44 (0) 20 3003 2666 – London

+7 499 272 4337 – Moscow

+1 646 843 4608 – New York

Toll free numbers:

8 10 8002 1774011 – Russia (from Moscow only)

0808 109 0700 – UK

1 866 966 5335 – USA

Conference Call Password: Horseshoe

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 31 projects, as of 31^st December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas.

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

Etalon Group IR Team

T: +44 (0) 20 8123 1328

E: info@etalongroup.com

M:Communications

Sam VanDerlip

T: +7 495 663 8005

Etalon Group Reaches One Thousand Customer Milestone for 2012

Etalon Group Limited (LSE: ETLN) (the "Company" or the “Group”), one of Russia's largest and oldest residential real estate developers, is pleased to announce that it has secured its 1,000^th order this year with the sale of an apartment in the Company’s flagship Jubilee Estate project in St. Petersburg.

St. Petersburg locals Victor Sazonov and Yulia Zhuravina completed the 1,000^th order to Etalon this year, with the purchase of a 2-bedroom apartment, with a 100% down payment, and a price per square meter of 81,088 RUR. Sazonov and Zhuravina were repeat customers, as this represented an upgrade from the previous apartment they had also purchased from Etalon.

Commenting on this key milestone, Etalon Group President Vyacheslav Zarenkov said: “This is of course a symbolic, but important and illustrative development for Etalon. We are delighted to have reached the 1,000 mark so early in the year, and once again this speaks to a broader positive trend in our industry, with continued recovery driven by the strengthening of consumer activity and demand, against the under-supply of quality space in our core “comfort class” segment. We are confident that this positive trend will continue throughout 2012.”

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 31 projects, as of 31^st December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31^st 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 Suspends Buyback Program

Etalon Group Limited (LSE: ETLN) (the "Company" or the “Group”), one of Russia's largest and oldest residential real estate developers, announced today that it has indefinitely suspended the share buyback program (the “Program”) announced on 28 October 2011.

The last purchase under the Program was made on 6 January 2012. In total the Group acquired 2.9 mln GDRs at an average price of USD 4.86. With USD 490 million* of expansion capital on the Company’s balance sheet, Etalon Group management plans to hold the GDRs acquired under the Program and the Company is under no pressure to sell down the GDRs.

Etalon Group President Vyacheslav Zarenkov said: “Our core business remains extracting value from the residential real estate projects that we acquire. The Group is currently in the process of acquiring a number of projects that we will announce in due course. With these acquisitions, we expect to increase delivery volumes in 2015-2016 from the currently planned c. 800 thousands sqm. Currently, we are fully landbank sufficient through 2016.

“By holding the GDRs we have bought back on our balance sheet, we are putting ourselves in the shoes of our shareholders, which we believe will encourage us to further enhance our communications with the investment community.”

*As of 31 December 2011, according to unaudited management accounts

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 31 projects, as of 31^st December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31^st 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%.

Etalon Group Real Estate Portfolio Market Value Up 20%

Etalon Group Limited (LSE: ETLN) (the "Company" or the “Group”), one of Russia's largest and oldest residential real estate developers, today released the updated valuation of its portfolio as of 31 December 2011, conducted by Jones Lang LaSalle. The updated valuation shows a 20% increase in the market value of the Group’s portfolio, reaching a total of USD 1,714 million. Details of the updated valuation is available on the Company’s website: www.etalongroup.com.

Etalon Group President Vyacheslav Zarenkov said: “During the past two years consumer activity has risen significantly, despite continued turbulence in the capital markets. The high level of pre-sales we saw again in the second half of 2011 underscores the structural gap between supply and demand in Russia that will take several generations to reach equilibrium.

“Today’s announcement also showed that the Group’s share of total NSA in the Moscow Metropolitan Area (MMA) has reached 44%, which demonstrates our commitment to expansion in this market. We delivered approximately 100 thousand sqm in the MMA in 2011.

“The market value of Etalon Group’s portfolio reached USD 1,714 million based on the report we published today, and our net cash position of USD 167 million at the end of the year underscores that the Company is well positioned for continued growth. While we are pleased with this growth in market value of Etalon Group’s portfolio, our business model remains focused on residential development in the 5^th, 6^th or 7^th ‘belts’ of residential neighbourhood zones outside of the centres of major cities, where land is generally available and is a commodity product.

“Last year we contracted 270 thousand sqm, and acquired a further 535 thousand sqm of new NSA (447 thousands sqm attributable to Etalon), which yields a landbank maintenance ratio of 1.65x. The Group’s landbank as of today provides for six years of operations, and is due to increase further with the USD 490 million of expansion capital on Etalon’s balance sheet[1] that we are actively employing in high-quality projects.

“Before the crisis, in the first half of 2008, we contracted 218 thousand sqm (up to 440 thousand sqm on an annualized basis) in St. Petersburg alone. While we are still significantly behind the pre-crisis level of operations, the trend is positive and we are optimistic on 2012, given our successful expansion in the MMA, continued strengthening of consumer activity since the beginning of the year and the quality landbank opportunities we see on the market today.”

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 31 projects, as of 31^st December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31^st 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’s Jubilee Estate Project gets Road Extension Approval

Etalon Group Limited (LSE: ETLN) (the "Company" or the “Group”), one of Russia's largest and oldest residential real estate developers, announces that construction of an extension of Shuvalovsky prospect from Komendantsky prospect to prospect Aviakonstruktorov is due to begin, following approval by the St. Petersburg Committee for Transport Infrastructure. This new section of road will significantly improve access to Etalon Group’s Jubilee Estate complex.

Jubilee Estate is one of Etalon’s flagship projects in the Group’s St. Petersburg portfolio. It is a comfort class residential complex located in the city’s Primorsky district, being built on a 35 hectare land plot that features 13 buildings of up to 25-storeys. The total net sellable area (NSA) for this project is over 600 thousand square metres. Jubilee Estate will form the centre of a new St. Petersburg residential neighbourhood, and the complex also features playgrounds, commercial premises as well as underground and guest parking.

Vyacheslav Zarenkov, Etalon Group President commented: “Jubilee Estate is one of our most successful projects. It is an excellent example of a large-scale development that has significantly enhanced the face of the district. We launched the project in 2007 when the Company celebrated its 20^th anniversary, and we are on track to finish construction in 2012, when Etalon turns 25. Three of the five years under development were crisis years. Despite this, 11 buildings have been delivered and 2 buildings will be delivered this year; Etalon expects to achieve USD 1.1 billion of cash collections by the completion of the Jubilee Estate project.”

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 Reports 4Q 2011 Operating Results

St. Petersburg – Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest and oldest residential real estate developers, announces its unaudited operating results for the three months ended 31 December 2011 based on management accounts.

4Q 2011 Highlights:

• For the year ended 31 December 2011, new contract sales increased 27% year-on-year (y-o-y) to 270,012 sqm and 30% y-o-y to RUR 18,306 mn on the back of a continued recovery in consumer activity;
• Deliveries increased by 57% y-o-y, including successful expansion into Moscow with the milestone first stage of Emerald Hills delivered on schedule, which contributed to total deliveries for the year ended 31 December 2011 of 328 thousand sqm;
• New contract sales increased 14% y-o-y to 84,093 sqm and 24% y-o-y to RUR 6,031 mn in 4Q 2011, traditionally highest in terms of sales activity quarter of the year;
• The average price for new contract sales in 4Q 2011 increased to RUR 71,718, up 9% compared to RUR 65,994 in 4Q 2010, and up 5% from RUR 68,030 in 3Q 2011;
• Pre-sales launched for five new buildings in 4Q 2011, representing 251,232 sqm of NSA and expected cash collections equivalent to c. US$ 566 mn.

4Q Operating Results

2H Deliveries

Quarterly Summary

Commenting on the 4Q 2011 results, Etalon Group President Viacheslav Zarenkov said:

“We are delighted to have had such a strong end to 2011. During the year we delivered more than 328 thousand square meters of NSA and we executed fully on the ambitious construction programme that was approved after the April 2010 IPO. We are particularly proud that we started our first and significant deliveries in the Moscow Metropolitan Area, which serves as continued proof of the sustainability of our unique vertically integrated business model.

“Last year we consistently outperformed our budget targets both in terms of new contract sales and cash collections, and we had achieved our key 2011 annual budget targets by mid-November.

“In 4Q 2011 we launched sales of five new buildings with a total NSA of 251 thousand square meters: two in Jubilee Estate and three in Emerald Hills. With average prices in the range of US$ 2.0-2.5 thousand per sqm, these projects have the potential to generate up to US$ 566 mn of cash collections during the next 3-5 years.

“Despite the turbulence on the financial markets, both 2010 and 2011 have demonstrated continuing consumer confidence that is particularly evident in the comfort class segment where we specialise.

“We believe Russia stands out from other residential markets around the world in that it is set for growth, which will be driven by the significant gap between supply and demand; 2010 and 2011 underscored this trend and we will see it continue in 2012.

“With c. US$ 446 mn in cash and cash equivalents and c. US$ 326 mn of mid- to long-term debt, we believe Etalon is well positioned to acquire more high-quality projects in order to create additional value for our shareholders. We are in the final stages of acquiring a number of new projects both in Moscow and St. Petersburg that we hope to announce in the next several weeks.

“We ended 2011 on a very strong note, with an excellent pipeline of projects in both Moscow and St. Petersburg. We believe the fundamentals of our sector are strong, and with consumer confidence continuing to grow, we expect to maintain our profitable growth into 2012.”

Webcast: http://www.media-server.com/m/p/466ob327

Conference call dial-ins:

Toll numbers:

London: +44 (0) 20 3003 2666

Moscow: +7 499 272 4337

New York: +1 646 843 4608

Toll free numbers:

Russia: 8 10 8002 1774011 (from Moscow only)

UK: 0808 109 0700

USA: 1 866 966 5335

Conference Call Password: Etalon

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 IR Team

T: +44 (0) 20 8123 1328

E: info@etalongroup.com

M: Communications

Sam VanDerlip

T: +7 495 663 8005

vanderlip@mcomgroup.com

Etalon to Announce Q4 2011 Operating Results

On Tuesday, 24 January 2012 at 14:00 London time (18:00 Moscow; 09:00 New York), Etalon will host a live conference call and audio webcast to discuss its Q4 2011 operating results.  The results will be issued in a press release earlier the same day.

Etalon Group President Viacheslav Zarenkov, CFO Anton Evdokimov, Head of Investments Dmitri Boulkhoukov and Head of Strategy and Business Development Alexander Shkuratov will briefly present the Q4 2011 operating results and answer questions from webcast and conference call participants. The webcast and conference call details are provided below:

Webcast: http://www.media-server.com/m/p/466ob327

Conference call dial-ins:

Toll numbers:

London:           +44 (0) 20 3003 2666
Moscow:         +7 499 272 4337
New York:       +1 646 843 4608

Toll free numbers:

Russia:            8 10 8002 1774011 (from Moscow only)
UK:                  0808 109 0700
USA:                1 866 966 5335

Conference Call Password:  Etalon

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 IR Team
T: +44 (0) 20 8123 1328
E: info@etalongroup.com

M: Communications
Sam VanDerlip
T: +7 495 663 8005
vanderlip@mcomgroup.com