19 May 2011

20 May 2011. Etalon Group Limited (“Etalon Group” or the “Company”), one of Russia’s largest residential real estate developers, with a 23 year track record, today announces its unaudited results for the three months ended 31 March 2011, based on management accounts.

Q1 2011 Operating Results

 Q1 2011 Q1 2010 Change, %
New sales contracts, sqm of NSA 59,638 38,281 56%
New sales contracts, mn RUR 4,158 2,568 62%
Transferred to customers, sqm of NSA   53,093 48,154 10%

2010 Quarterly summary

 Q1 2010Q2 2010 Q3 2010 Q4 2010 2010
New sales contracts, sqm of NSA38,281  48,117  52,357   73,522 212,277
New sales contracts, mn RUR2,5683,2083,478 4,85214,106
Transferred to customers, sqm of NSA  48,15455,43882,243 64,876250,711

Note: NSA stands for net sellable are

A conference call for  analysts and investors will  be held today at  14.00hrs UK/ 17.00hrs  Moscow time.   For  details of  the  call, please  contact  Will Henderson at Financial  Dynamics by telephone  on +44 (0)20  7831 3113, or  by email at

Commenting on  the results,  Viacheslav Zarenkov,  Chairman of  Etalon  Group, said:  "In  the first  quarter of  2011 Etalon  made solid  progress with  new sales, as evidenced by the robust operating results we are announcing  today. These results are particularly pleasing when compared to a strong  performance in the  same  period  last year  and  because  the first  quarter  is  usually characterised by lower seasonal activity.

"We believe that  the primary  driver for  the increase  in new  sales is  the continued recovery  in  the residential  mass  market segment  in  our  target cities, combined with the  high level of  consumer confidence associated  with the Etalon brand and its long term track record in this market.

"We are pleased  to be able  to present such  good news so  shortly after  our successful London IPO and are looking forward to putting the proceeds of  that offering to work as soon as possible."

For further information:

Financial Dynamics - Financial Public Relations Adviser

London: +44 (0)20 7831 3113

Richard Sunderland
Stephanie Highett
Will Henderson:

Moscow: +7 (495) 795 06 23

Oleg Leonov
Maria Shiryaevskaya

About Etalon Group

Etalon Group is one of  Russia's largest residential real estate  developers.  Since its original 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%.