"ETALON-LENSPETSSMU" HOLDING HAS ATTRACTED INTERNATIONAL FINANCIAL INVESTOR BARING VOSTOK

21.03.2008

Press-release

"ETALON-LENSPETSSMU" HOLDING HAS ATTRACTED INTERNATIONAL FINANCIAL INVESTOR BARING VOSTOK

Within the framework of the strategy for the company development and capitalization increase, "Etalon-LenSpetsSMU" holding has attracted international financial investor Baring Vostok. The world-wide known financial investor has become long-term strategic partner of the largest construction association of the North-West region. Investments are to provide for further development of "Etalon-LenSpetsSMU" holding and realization of large-scale developing projects.

The agreement was executed in January, the transaction was finished in March, 2008. As a result, Baring Vostok has become minority partnership with the share of 15% in the authorized capital. Baring Vostok representatives are to be included in the holding Board of directors. The founder and the major shareholder, chairman of the holding Board of directors, Vacheslav Zarenkov, and the acting team of top-management, together with the strategic partner, will concentrate the efforts on the dynamical development of the main business of the company in the long-term perspective.

With the participation of Baring Vostok, "Etalon-LenSpetsSMU" receives the access to international stock markets which is to reinforce the holding's positions in Russia and to create new conditions for the business development. Baring Vostok is to introduce to the holding the international experience of the corporative management and IPO successful conduct.

The assets received as a result of Baring Vostok investments will be forwarded for further development of "Etalon-LenSpetsSMU" business, mainly - for purchasing several large-scale projects in the field of constructing the housing and commercial real estate in Saint-Petersburg and other regions of Russia.

Baring Vostok

Baring Vostok specialized in investments in Russia and other CIS countries. Since 1994, the funds of Baring Vostok for the amount of over $800 million have been invested into 50 companies, among which there is a number of successful companies in the field of financial services, oil and gas industry, telecommunications and mass media, in the consumer segment, including such companies as STS channel, Barren Energy, Yandex, Bank Caspian, Europlan, Financial Technologies Center, Volga Gas, Gallery, VimpelCom, Golden Telecom, Syktyvkar LPK, SladCo, Ozon, and a number of others. Among investors, there are such famous international financial institutions as European Bank for Reconstruction and Development, International Financial Corporation, as well as the world's largest pension funds, public investment corporations, university funds of America, Europe, and Asia. Baring Vostok is included in the structure of Baring Private Equity International, a group of companies managing direct investments funds with the assets of $3.5 billion in CIS, Asia, India, countries of Europe and Latin America.