Etalon Group Limited (LSE: ETLN) (the "Company"), one of Russia's largest and oldest residential real estate developers, announces that on 23 November 2011 the independent shareholders of the Company at an extraordinary meeting of shareholders (EGM) approved a waiver under Rule 9 of the City Code on Takeovers and Mergers in connection with a proposed purchase 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 "Programme"). The Programme will commence on 24 November 2011 and will continue until 23 November 2012, unless terminated earlier by the Company.

Commenting on the GDR buyback Programme, Etalon CFO Anton Evdokimov said:

“We are very pleased to have EGM approval to proceed with the buyback, which we believe will be in the interest of all shareholders.”

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

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

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

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.

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.