Press-release on IFRS

22.06.2006

Companies group “LenSpecSMU”, in accordance with obligations to investors taken earlier is performing
preparation of consolidated statements under International Standards of Financial Reporting (IFRS).
At present, at the Financial cite of the company there is consolidated statements for Companies group
“LenSpecSMU” for 2003 and 2004 in easy access, as well as non-consolidated statements for two companies:
CJSC “CUN” (issuer of two bonded loans) and CJSC SSMO “LenSpecSMU” (guarantor for bonded loans).
Completion of audit check of statements for 2005 is expected in the second half of July, 2006.
Auditor is company Horwath МКПЦН – member of the international audit network Horwath
International.
Appearance of statements under IFRS before allocation of the second bonded loan is a positive factor in
investors’ eyes and allows foreign financial organizations to participate in allocation.
In the opinion of Companies group “LenSpecSMU” administration, the advantage of reporting under
IFRS over reporting made under Russian standards of accounting is, first of all, more fair representation of
proceeds (in accordance with IFRS the proceeds of the Group in 2002 constituted 1.2 billion rubles, in 2003 –
2.0 billion rubles, in 2004 – 6.1 billion rubles) and balance structure.
Preparation of reporting under international standards is next step towards publicity of the company.
Credit history of the Holding starts from 2000 when it received first overdrafts and short-term loans. In 2005
there took place allocation of the first boded loan – for the amount of 1.0 billion rubles which started public
credit history of the Companies group. And from that moment the administration of the Holding began to meet
with investors on regular basis informing them on current state and development perspectives of the company.
In May, 2006 a foreign bank – Amsterdam trading bank, which provided loan in the amount of 12.0
million US dollars for the term of 5 years – became Holding’s creditor for the first time.
On 25 of May, 2006 the Federal Financial Market Service of RF registered the second issue of bonded
loan of CJSC “Central department of estate LenSpecSMU” for the amount of 1.5 billion rubles allocation of
which is planned for the middle of July, 2006. The organizer of the issue, the same as for the first loan, is Bank
of Moscow.
All information can be received through the cite of the company (http://finance.lenspecsmu.ru), and also
turning to the Financial service of the company of Marketing and finances department