13 July 2011, St. Petersburg – Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest residential real estate developers, today announces its unaudited results for the three months ended 30 June 2011 based on management accounts.

Q2 2011 Highlights:

• 124.4 ths sqm of net sellable area (“NSA”) delivered during the period;
• Completed and delivered two buildings in Jubilee Estate and Talisman projects;
• Pre-sales of Emerald Hills in Moscow on track (c. 51% of NSA of flats in first stage) with first stage set to be delivered in December 2011;
• Agreement to start new 220,000 sqm NSA mass market residential development project on Dmitrovskoye Shosse in Moscow;
• Acquisition of 2.1 hectare land plot in the Moskovskiy district of St Petersburg to develop a 50,000 sqm NSA mass market residential neighborhood project.

Commenting on the results, Viacheslav Zarenkov, Chairman of Etalon Group, said:

“I am pleased to note that construction volumes in 2011 are rapidly approaching pre-crisis levels. In the first half of 2011, we achieved more than 100% growth year-on-year, with deliveries reaching 124,395 sqm compared to 58,544 sqm in H1 2010.

We continued to gain share in the Greater Moscow Area, posting pre-sales of about 51% of NSA of flats in the first stage of our Emerald Hills project, and with second-stage sales now underway. We also had a significant level of completions overall, including two buildings in our Jubilee Estate and Talisman projects.

“As the market continues to pick up, we see considerable opportunity for further profitable growth supported by our successful integrated business model and the continued high level of consumer confidence in our brand.”

A conference call for analysts and investors will be held on:

Date: Wednesday, July 13th, 2011
Time: 17.00 Moscow / 14.00 London / 09.00 New York

For details of the call, please contact:

Elena Sobolevskaya, VTB Capital
Tel: +7 495 589 2164
Cell: +7 916 652 1570
E-mail: elena.sobolevskaya@vtbcapital.com

Etalon Group is one of Russia’s largest residential real estate developers. Since its inception in 1987, the Company has built a leading position in the St. Petersburg Metropolitan Area, where it has recorded an 11% average annual market share of total residential completions in the private sector (excluding individual constructions) between 2000 and 2010. It also has a growing presence in the Moscow Metropolitan Area market.

Etalon Group has a strong portfolio focused on large-scale residential complexes, targeting the lower middle class and upper economy class price segments, providing high quality living at affordable prices. The Company’s portfolio comprised 28 projects, as of 31 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 December 31 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%.