| o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------------|

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the Fiscal year ended December 31, 2009 |
|---|----------------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For transition period from __________ to __________ |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------|

| o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. Date of event requiring this shell company report __________ |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Large Accelerated Filer o | Accelerated Filer o | Non-accelerated Filer x |
|---------------------------|---------------------|-------------------------|

| o U.S. GAAP | x International Financial Reporting Standards        | o Other |
|------------------|-----------------------------------------------------------|--------------|
|             | as issued by the International Accounting Standards Board |         |

----

----

| PART I                             |                                                                                                                                                                |   |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                               |                                                                                                                                                                |   |
| Item 1.                            | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS                                                                                                               | 5      |
|                               |                                                                                                                                                                |   |
| Item 2.                            | OFFER STATISTICS AND EXPECTED TIMETABLE                                                                                                                             | 6      |
|                               |                                                                                                                                                                |   |
| Item 3.                            | KEY INFORMATION                                                                                                                                                     | 6      |
|                               |                                                                                                                                                                |   |
| Item 4.                            | INFORMATION ON THE REGISTRANT                                                                                                                                       | 20     |
|                               |                                                                                                                                                                |   |
| Item 4A.                           | UNRESOLVED STAFF COMMENTS                                                                                                                                           | 29     |
|                               |                                                                                                                                                                |   |
| Item 5.                            | OPERATING AND FINANCIAL REVIEW AND PROSPECTS                                                                                                                        | 29     |
|                               |                                                                                                                                                                |   |
| Item 6.                            | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                                                                                                                          | 36     |
|                               |                                                                                                                                                                |   |
| Item 7.                            | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS                                                                                                                   | 40     |
|                               |                                                                                                                                                                |   |
| Item 8.             | FINANCIAL INFORMATION KONSTA REAL ESTATE PROPERTIES LTD.CONSOLIDATED FINANCIAL STATEMENTSfor the years ended 31 December 2009 31 December 2008 and 31 December 2007 | 41     |
|                               |                                                                                                                                                                |   |
| Item 9.                            | THE OFFER AND LISTING                                                                                                                                               | 42     |
|                               |                                                                                                                                                                |   |
| Item 10.                           | ADDITIONAL INFORMATION                                                                                                                                              | 42     |
|                               |                                                                                                                                                                |   |
| Item 11.                           | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                          | 48     |
|                               |                                                                                                                                                                |   |
| Item 12.                           | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                                                                                                              | 48     |
|                               |                                                                                                                                                                |   |
| PART II                            |                                                                                                                                                                |   |
|                               |                                                                                                                                                                |   |
| Item 13.                           | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                                                                                                                     | 49     |
|                               |                                                                                                                                                                |   |
| Item 14.                           | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS                                                                                        | 49     |
|                               |                                                                                                                                                                |   |
| Item 15.                           | CONTROLS AND PROCEDURES                                                                                                                                             | 49     |
|                               |                                                                                                                                                                |   |
| Item 16A.                          | AUDIT COMMITTEE FINANCIAL EXPERT                                                                                                                                    | 49     |
|                               |                                                                                                                                                                |   |
| Item 16B.                          | CODE OF ETHICS                                                                                                                                                      | 49     |
|                               |                                                                                                                                                                |   |
| Item 16C.                          | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                                                                              | 49     |
|                               |                                                                                                                                                                |   |
| Item 16D.                          | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                                                                                                          | 49     |
|                               |                                                                                                                                                                |   |
| Item 16E.                          | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS                                                                                              | 49     |
|                               |                                                                                                                                                                |   |
| Item 16F.                          | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT                                                                                                                  |   |
|                               |                                                                                                                                                                |   |
| Item 16G.                          | CORPORATE GOVERNANCE                                                                                                                                                |   |
|                               |                                                                                                                                                                |   |
| PART III                           |                                                                                                                                                                |   |
|                               |                                                                                                                                                                |   |
| Item 17.                           | FINANCIAL STATEMENTS                                                                                                                                                | 50     |
|                               |                                                                                                                                                                |   |
|     Item 18.        | FINANCIAL STATEMENTS                                                                                                                                                | 50     |
|                               |                                                                                                                                                                |   |
|     Item 19.   | EXHIBITS                                                                                                                                                            | 50     |

----

| Name               |   | Position                           |
|--------------------|--------|------------------------------------|
| Dr. Roman Plavnik  |   | Chairman of the Board of Directors |
| Nazar Lappa        |   | Director                           |
| Svetlana Gromova   |   | Director                           |
| Michael Lakshin    |   | Director                           |
| Konstantin Plavnik |   | Director                           |
| Sergey Vokhontsev  |   | Director                           |

| Name               |   | Position                                         |
|--------------------|--------|--------------------------------------------------|
| Dr. Roman Plavnik  |   | Chief Executive Officer and President            |
| Nazar Lappa        |   | Vice President of Investor Relations             |
| Svetlana Gromova   |   | Vice President of Legal Affairs and Secretary    |
| Michael Lakshin    |   | Vice President of Marketing / CEO, US Operations |
| Konstantin Plavnik |   | Vice President of Business Analytics             |
| Sergey Vokhontsev  |   | Chief Operations Officer                         |
| Oleg Sultanov      |   | Chief Financial Officer                          |
| Dmitry Sednev      |   | Vice President of Construction and Development   |

----

|   | A. | Selected Financial Data |
|--------|----|-------------------------|

----

|                                                                                                                                                                          |   | As of 31 December 2009 |        |   | As of 31 December 2008 |   |        | As of 31 December 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-------------|--------|------------------------|--------|-------------|------------------------|--------|
|                                                                                                                                                                          |   |                   |        |   |                   |   |        |                   |   |
| ASSETS                                                                                                                                                                        |   |                   |        |   |                   |   |        |                   |   |
| Current assets                                                                                                                                                                |   |                   |        |   |                   |   |        |                   |   |
| Cash and cash equivalents                                                                                                                                                     |   | $                      | 13          |   |                   | $      | 33          |                   |   | $ | 47 |   |
| Short-term loans                                                                                                                                                              |   |                   | 570         |   |                   |   | -           |                   |   |   | 3 770 |   |
| Other receivables                                                                                                                                                             |   |                   | 208         |   |                   |   | 341         |                   |   |   | 43 |   |
| Other current assets                                                                                                                                                          |   |                   | 68          |   |                   |   | 2           |                   |   |   | 31 |   |
| Total current assets                                                                                                                                                          |   |                   | 859         |   |                   |   | 376         |                   |   |   | 3 891 |   |
|                                                                                                                                                                          |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| Non-current assets                                                                                                                                                            |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| Trading property                                                                                                                                                              |   |                   | 22 613      |   |                   |   | 15 504 |                   |   |   | 8 880 |   |
| Property, plant and equipment, net                                                                                                                                            |   |                   | 39          |   |                   |   | 65          |                   |   |   | 49 |   |
| Intangible assets                                                                                                                                                             |   |                   | 12 901      |   |                   |   | 13 851 |                   |   |   | 9 390 |   |
| Deferred tax assets                                                                                                                                                           |   |                   | 504         |   |                   |   | 212         |                   |   |   | 53 |   |
| Other non-current assets                                                                                                                                                      |   |                   | -           |   |                   |   | -           |                   |   |   | 343 |   |
| Total non-current assets                                                                                                                                                      |   |                   | 36 057      |   |                   |   | 29 632 |                   |   |   | 18 715 |   |
|                                                                                                                                                                          |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                                  |   | $                      | 36 916      |   |                   | $      | 30008       |                   |   | $ | 22606 |   |
|                                                                                                                                                                          |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| LIABILITIES                                                                                                                                                                   |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| Current liabilities                                                                                                                                                           |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| Other payables                                                                                                                                                                |   | $                      | 1 290       |   |                   | $      | 597         |                   |   | $ | 32 |   |
| Short-term borrowings                                                                                                                                                         |   |                   | 477         |   |                   |   | 68          |                   |   |   | 6 |   |
| Total current liabilities                                                                                                                                                     |   |                   | 1 767       |   |                   |   | 665         |                   |   |   | 38 |   |
|                                                                                                                                                                          |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| Long-term liabilities                                                                                                                                                         |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| Long-term borrowings                                                                                                                                                          |   |                   | -           |   |                   |   | 75          |                   |   |   | 64 |   |
| Deferred tax liabilities                                                                                                                                                      |   |                   | 2 539       |   |                   |   | 2 530       |                   |   |   | 2 257 |   |
| Total long-term liabilities                                                                                                                                                   |   |                   | 2 539       |   |                   |   | 2 605       |                   |   |   | 2 321 |   |
|                                                                                                                                                                          |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| EQUITY                                                                                                                                                                        |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| Ordinary Shares, $3.00 par value, 55,000,000 shares authorized, 10,794,811 shares issued and outstanding at 31/12/2009 (9,467,968 - at 31/12/2008, 6,554,770 - at 31/12/2007) |   |                   | 32 384      |   |                   |   | 28 404      |                   |   |   | 19 664 |   |
| Share premium                                                                                                                                                                 |   |                   | (8 314 | )      |                   |   | (11 572     | )                      |   |   | (7 133 | ) |
| Revaluation reserve                                                                                                                                                           |   |                   | 9 378       |   |                   |   | 10 111      |                   |   |   | 7 133 |   |
| Translational reserve                                                                                                                                                         |   |                   | 21          |   |                   |   | 22          |                   |   |   | 23 |   |
| Retained earnings                                                                                                                                                             |   |                   | (859        | )      |                   |   | (227        | )                      |   |   | 560 |   |
| Total equity attributable to shareholders of Company                                                                                                                          |   |                   | 32 610      |   |                   |   | 26 738      |                   |   |   | 20 247 |   |
| Non-controlling interests                                                                                                                                                     |   |                   | -           |   |                   |   | -           |                   |   |   | - |   |
| Total equity                                                                                                                                                                  |   |                   | 32 610      |   |                   |   | 26 738      |                   |   |   | 20 247 |   |
|                                                                                                                                                                          |   |                   |        |   |                   |   |        |                   |   |   |   |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                                  |   | $                      | 36 916      |   |                   | $      | 30 008      |                   |   | $ | 22 606 |   |

----

|                                                  |   | For the year ended 31 December 2009 |   |   | For the year ended 31 December 2008 |   |   | For the year ended 31 December 2007 |   |
|-------------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                                  |   |                                |   |   |                                |   |   |                                |   |
| Income                                                |   |                                |   |   |                                |   |   |                                |   |
| Commissions fee                                       |   | $                                   | -      |   |                                | $      | 338    |                                |   | $ | 881 |   |
| Other operating income                                |   |                                | -      |   |                                |   | 7      |                                |   |   | - |   |
| Total income                                          |   |                                | -      |   |                                |   | 345    |                                |   |   | 881 |   |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Operating expenses                                    |   |                                | (572   | )      |                                |   | (1 326 | )                                   |   |   | (414 | ) |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Exchange difference gain/(loss)                       |   |                                | (179   | )      |                                |   | 10     |                                |   |   | 34 |   |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Operating income/(loss)                               |   |                                | (751   | )      |                                |   | (971   | )                                   |   |   | 501 |   |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Interest income                                       |   |                                | -      |   |                                |   | -      |                                |   |   | 17 |   |
| Interest expense                                      |   |                                | (6     | )      |                                |   | (5     | )                                   |   |   | (2 | ) |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Income/(loss) before tax                              |   |                                | (757   | )      |                                |   | (976   | )                                   |   |   | 516 |   |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Income tax                                            |   |                                | 125    |   |                                |   | 189    |                                |   |   | 44 |   |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Net income/(loss)                                     |   | $                                   | (632   | )      |                                | $      | (787   | )                                   |   | $ | 560 |   |
|                                                  |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Basic and diluted income(loss) per sharein US dollars |   | $                                   | (0,05  | )      |                                | $      | (0,10  | )                                   |   | $ | 0,11 |   |
| Attributable to:                                      |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| shareholders of Company                               |   | $                                   | (0,05  | )      |                                | $      | (0,10  | )                                   |   | $ | 0,11 |   |
| non-controlling interests                             |   | $                                   | -      |   |                                | $      | -      |                                |   | $ | - |   |

|                                                                   |   |   |        |   |   |   |        |   |   |
|------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
| Net Income (Loss)                                                      |   |   | (632        | )      |   | $      | (787        | )      |   | $ | 560 |   |
| Other comprehensive income (loss)                                      |   |   |        |   |   |   |        |   |   |   |   |   |
| Foreign exchange difference                                            |   |   | (290        | )      |   |   | (1 175 | )      |   |   | 23 |   |
| Revaluation of tenant right                                            |   |   | (555        | )      |   |   | 4 427  |   |   |   | 9 386 |   |
| Income tax relating to components of other comprehensive (loss)/income |   |   | 111         |   |   |   | (275        | )      |   |   | (2 253 | ) |
| Other comprehensive income (loss), net of tax                          |   |   | (734        | )      |   |   | 2 977  |   |   |   | 7 156 |   |
| Comprehensive income (loss)                                            |   |   | (1 366 | )      |   | $      | 2190        |   |   | $ | 7 716 |   |
| Attributable to:                                                       |   |   |        |   |   |   |        |   |   |   |   |   |
| shareholders of Company                                                |   |   | (1 366 | )      |   | $      | 2190        |   |   | $ | 7716 |   |
| non-controlling interests                                              |   |   | -           |   |   | $      | -           |   |   | $ | - |   |

----

| Fiscal Period Ended                                                                                                                                                                                                                               |   | PeriodAverageRuble/US$ |    | PeriodAverageRuble/US$ |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|------------------------|
| June 30, 2005                                                                                                                                                                                                                                     |   |                   |    |                   |   |   |   |   |
| December 31, 2005                                                                                                                                                                                                                                 |   |                   | 28.7825 |                   |   |   |   |   |
| June 30, 2006                                                                                                                                                                                                                                     |   |                   | 27.0789 |                   |   |   |   |   |
| December 31, 2006                                                                                                                                                                                                                                 |   |                   | 26.3311 |                   |   |   |   |   |
| June 30, 2007                                                                                                                                                                                                                                     |   |                   | 25.8162 |                   |   |   |   |   |
| December 31, 2007                                                                                                                                                                                                                                 |   |                   | 24.5462 |                   |   |   |   |   |
| June 30, 2008                                                                                                                                                                                                                                     |   |                   | 23.4573 |                   |   |   |   |   |
| December 31, 2008                                                                                                                                                                                                                                 |   |                   | 29.3804 |                   |   |   |   |   |
| June 30, 2009                                                                                                                                                                                                                                     |   |                   | 31.2904 |                   |   |   |   |   |
| December 31, 2009                                                                                                                                                                                                                                 |   |                   | 30.2442 |                   |   |   |   |   |
|                                                                                                                                                                                                                                              |   |                   |    |                   |   |   |   |   |
| Monthly Period Ended                                                                                                                                                                                                                              |   |                   | High    |                   |   |   | Low |   |
| July 31 2009                                                                                                                                                                                                                                      |   |                   | 32.2184 |                   |   |   | 31.1428 |   |
| August 31, 2009                                                                                                                                                                                                                                   |   |                   | 31.9918 |                   |   |   | 31.1120 |   |
| September 30, 2009                                                                                                                                                                                                                                |   |                   | 30.6441 |                   |   |   | 29.7882 |   |
| October 31, 2009                                                                                                                                                                                                                                  |   |                   | 29.7882 |                   |   |   | 29.1053 |   |
| November 30, 2009                                                                                                                                                                                                                                 |   |                   | 30.2599 |                   |   |   | 28.7330 |   |
| December 31, 2009                                                                                                                                                                                                                                 |   |                   | 30.2943 |                   |   |   | 29.4874 |   |
| January 31, 2010                                                                                                                                                                                                                                  |   |                   | 30.2989 |                   |   |   | 29.4874 |   |
| February 28, 2010                                                                                                                                                                                                                                 |   |                   | 30.2839 |                   |   |   | 29.8760 |   |
|                                     March 30,2010             |   |                   | 29.9779 |                   |   |   | 29.1927 |   |
|                                      April 30, 2010      |   |                   | 29.0294 |                   |   |   | 29.4956 |   |
|                                       May 30, 2010  |   |                   | 29.1537 |                   |   |   | 31.4293 |   |
|                                       June 30, 2010 |   |                   | 30.7267 |                   |   |   | 31.7798 |   |
|           July 30, 2010                                                                                                                                                                         |   |                   | 30.1869 |                   |   |   | 31.3703 |   |

----

|                                                                                                            |    | Actual  |         |
|---------------------------------------------------------------------------------------------------------------------------|--------------|---------|-------------------|
| Ordinary Shares, $3.00 par value, 55,000,000 shares authorized,  10,794,811 shares issued and outstanding  |         | $  | 32 384  |   |
| Share premium                                                                                                        |         | $  | (8,314)      |   |
| Accumulated Deficit                                                                                                  |         | $  | (859)        |   |
| Other comprehensive loss                                                                                             |         | $  | 9 399        |   |
| Total Capitalization                                                                                                 |         | $  | 32 610  |   |

----

| ● | The rules requiring the filing with the SEC of quarterly reports on Form 10-Q or Current Reports on Form 8-K, although we are required to furnish a report on Form 6-K disclosing information that we make public pursuant to the laws of the British Virgin Islands or the Russian Federation, that we are required to file by the Over the Counter Bulletin Board or that we are required to furnish to our securities holders pursuant to the rules and regulations of the SEC with respect to the Form 6-K; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations with respect to a security registered under the Exchange Act; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                              |
| ● | Provisions of Regulation FD aimed at preventing issuers from making selective disclosures of material information; and                                            |

| ● | The sections of the Exchange Act requiring insiders to file public reports of their ordinary share ownership and trading activities and establishing insider liability for profits realized from any “short swing” trading transactions (i.e., a purchase and sale, or a sale and purchase, of the issuer’s equity securities within less than six months). |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ● | the economic climate, which may be adversely impacted by business closings, industry slowdowns;                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | employment losses and other factors;                                                                                                                                                                                          |
| ● | Availability of financing;                                                                                                                                                                                                    |
| ● | competition for tenants;                                                                                                                                                                                                      |
| ● | conditions of real estate property sectors such as an oversupply of, or a reduced demand for, certain types of real estate properties;                                                                                        |
| ● | changes in market rental rates;                                                                                                                                                                                               |
| ● | decline in population or shifting demographics that adversely affects occupancy or rental rates;                                                                                                                              |
| ● | the inability or unwillingness of lessees to pay rent increases;                                                                                                                                                              |
| ● | inability to lease properties upon termination of existing leases;                                                                                                                                                            |
| ● | success of the Olympic games in 2014 in Sochi;                                                                                                                                                                                |
| ● | changes in tax, real estate, zoning and environmental laws that may have an adverse impact upon the value of real estate;                                                                                                |
| ● | property damage or casualty losses;                                                                                                                                                                                           |
| ● | unexpected expenditures for capital improvements or to bring properties into compliance withapplicable federal, state and local laws;                                                                                         |
| ● | acts of terrorism and war;                                                                                                                                                                                                    |
| ● | acts of God and other factors beyond the control of our management;                                                                                                                                                           |
| ● | the potential effect of rent control or rent stabilization laws, or other laws regulating housing, on any of our multifamilyproperties, which could prevent us from raising rents to offset increases in operating costs; and |
| ● | the rental market which may limit the extent to which rents may be increased to meet increased expenses without decreasing occupancy rates.                                                                                   |

----

----

----

----

----

----

----

----

----

|     |   | 31 Dec 2007 |   |   |   |   | 31 Dec 2008 |   | 31 Dec 2009 |   |
|----------|--------|-------------|--------|--------|--------|--------|-------------|--------|-------------|--------|
| Kurortny |   |        | 6 212  |   |   |   |        |   | 11 094      |   |   | 14 820 |   |
| Orbita   |   |        | 2 668  |   |   |   |        |   | 4 410       |   |   | 7 793 |   |
|     |   |        |   |   |   |   |        |   |        |   |   |   |   |
| Total    |   |        | 8 880  |   |   |   |        |   | 15 504      |   |   | 22 613 |   |

----

| ● | Acquire or develop and sell or lease completed real estate projects; and           |
|---------|------------------------------------------------------------------------------------|
| ● | realize income from leasing or gains from sales of completed real estate projects. |

----

----

| ·   | We have developed and approved the Land Urban Development plan. |
|--------------------|-----------------------------------------------------------------|

| ·   | We have completed the Master Plan of the Residential Apartment Building, the design of anti-landsliding facilities and transfer of the rainfall collector outside the construction zone. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have completed geological engineering and geodetic / topographic surveys of the construction zone; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | We have completed the detailed assessment of environmental impact and designed the environmental protection program during the construction. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have completed radiation and bacteriological surveys of the soil within the construction zone. |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | We have completed the Government Expertise of geological surveys. |
|--------------------|-------------------------------------------------------------------|

| ·   | We have completed preparatory works to supply the construction project with all required construction materials, including, but not limited to organizing plaster and mortar site, and delivery of crushed stone gravel, metal and concrete. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have partially completed and continue the construction works of the first construction phase, including, but not limited to: (i) planning of the construction zone and building the all-around fence, (ii) demolition of previously-built objects from the construction zone, (iii) water-flooding preventive measures, (iv) “zero cycle” preparatory ground works, (v) development of anti-landsliding facilities and transfer of the main rainfall collector). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Municipal Unitary Enterprise “Municipal Institute of Genplan” (Sochi) – responsible for preparing and obtaining all licenses, permits, approval, opinions, and other legal documents required for the development of the project (Contract No11-026/0515, dated April 21, 2008). Total amount of the contract 6,239.00 roubles. Fully executed. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | State Agency of Kransnodarskii Region “Krasnodarkraigosexpertiza” - responsible for conducting government expertise based on the results of geological survey and master plan. Issued positive Report. (Contract No С-206 from October 29, 2008. Contract No С-148, dated August 15, 2008). Total combined amount for both contracts 275,074.00 roubles. Both contracts are fully executed. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Association “Chernomorecology” - responsible for providing complex services required to evaluate the impact of the construction project on local environment; designed and implementation of environment protection measures. (Contract No 622/ООС - «А» , dated April 15, 2008). Total amount of the contract 475,000.00 roubles. Fully executed. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Sochiarchproect” – General Project Designer in charge of designing the project, engineering networks, communications, anti-landsliding facilities, transferring collector away from the construction zone, providing architectural supervision of the construction project (Contract No 19, dated September 19, 2006 and Addendum No1, dated April 21, 2008). Total amount of the contract 7,906,920.00 roubles. Contract will be fully executed upon the completion of the construction project. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Vector-Stroi” – responsible for design of approval documents and design-estimates (Contract No 5/П, dated December 10, 2006). Total amount of the contract 1,200,000 roubles. Contract is fully executed. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “GEO” – in charge of conducting geological and topographic / geodetic surveys within the construction zone. (Contract No 14 from December 25, 2008). Total amount of the contract 128,272 roubles. Contract is fully executed. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Stroitelnyi kompleks” – construction works during the initial construction phase (cleaning the territory and building the protective fence around the construction zone, planning of the construction site, transfer of the rainfall collector) (Contract No 027/2, dated February 27, 2008). Total amount of the project 22,755,300 roubles. Contract is fully executed. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Committee of Architecture and Urban Development of Sochi – responsible for planning and approval of the Urban Development Plan for the lot of land. (Verbal agreement free of charge.) Contract is fully executed. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Pegas” - General Contractor (Contract No 00307/GP dated April 01, 2008). Total amount of the contract 426,357,000 roubles. Contract is being fulfilled in accordance with the construction process of the project. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | We have developed and approved the Land Urban Development plan and projects of the internal engineering networks of the residential apartment building. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have received Technical specifications for connecting the residential apartment building to the external engineering networks and communications, such as: gas, water, sewer, electricity, and telecommunications. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Completed projects of feeding engineering networks and communications to the construction zone, transfer project of main plumbing network from the construction zone. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have completed geological engineering and geodetic / topographic surveys of the construction zone; and received the opinion. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have completed the detailed assessment of environmental impact and deigned the environmental protection program during the construction. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have completed radiation and bacteriological surveys of the soil within the construction zone and received approval opinion from the agency in charge of sanitary and epidemiological control. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have completed the following preparatory works: (i) planning of the construction zone, (ii) building the all-around fence, (iii) “zero cycle” preparatory ground works. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have completed the installation of the temporary electric-supply network of the construction zone. |
|--------------------|-------------------------------------------------------------------------------------------------------|

----

| ·   | Architectural design firm “Prospect””- General Designer of the apartment building (Contract No 225/8 dated February 18, 2008). Total amount of the contract, including addendums 9,680,000 roubles. Contract is partially fulfilled. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Municipal Unitary Enterprise “Gagarinproekt”- responsible for designing the electrical supply / feed for the project (Contract No 005 dated February 17, 2009). Total amount of the contract is 370,000 roubles. Contract is fully executed. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Agrostri” – in charge of building protective fence (Contract No 1SP dated February 11, 2009). Total amount of the contract 1,200,000 roubles. Contract is fully executed. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Horizon” – responsible for planning of the construction site. (Contract w/o number dated February 05, 2009). Total amount of the contract 33,250 roubles. Contract is fully executed. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Branch of ОАО “MRSK Center – “Smolenskenergo” – in charge of the technological process of connecting energy generators. (Contract No 304/1-29 from April 3, 2008). Total amount of the contract 43,188 roubles. Contract is fully executed. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “SmolenskTIZIS”- responcible for engineering-geological and topographic / geodetic  surveys (Contract No 10549 dated February 05, 2009). Total amount of the contract 329,566 roubles. Contract is fully executed. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | State Regional Unitary Enterprise “Architectural Bureau of Smolenskii region” – in charge of designing project documentation related to engineering networks (Contract No7-08 from February 7, 2008). Total amount of the contract 50,000 roubles. Contract is fully executed. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Federal State agency “Center of Hygiene and Epidemiology of Smolenskii Region” – provided laboratory surveys of the soil (Contract No 2223 from November 19, 2008). Total amount of the contract 8,288 roubles. Contract is fully executed. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “StroiMontazhService” – responsible for cleaning up the construction territory, ground works, objects demolition (Contract No5/2008 dated February 03, 2008). Total amount of the contract 700,000 roubles. Contract is fully executed. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Smolensk Chamber of Trade and Commerce – responsible for providing appraisal of the object (Contract No177/07 dated August 14, 2007 and other). Total amount is 31,400 roubles per each appraisal. Appraisal of the project is being done on a regular basis. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Technical-Engineering center of technical regulations” – providing design and execution of relocating the water mains from the construction site (Contract No 76 dated August 14, 2009). Total amount of contract 85,500 roubles. Contract is fully executed. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “Mosstroicompany” – responsible for receiving technical specifications, approvals and further connecting to main engineering networks (gas, water-supply, sewer, electricity, heating, telecommunications). (Contract No 8/2007 from November 10, 2007). Total amount of the contract 4,130,000 roubles. Contract is fully executed. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | PK “Stroisvyaz” – providing design of telecommunication and radio networks of the apartment building. (Contract No PK-P-31 from April 21, 2008). Total amount of the contract 160,480 roubles. Contract is fully executed. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | “PromManagementGroup-Stroi” – General contractor (Contract No 027/02 GP dated February 01, 2009). Total amount of the project 289,700,000 roubles. Being fulfilled in accordance with the completion of the construction project of the apartment building. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 1.   | Land Law of Russian Federation (http://www.consultant.ru/popular/earth), and |
|----------------|------------------------------------------------------------------------------|

| 2.   | Urban Planning Code of Russian Federation (http://www.consultant.ru/popular/gskrf). |
|----------------|-------------------------------------------------------------------------------------|

| 1)   | Russian Federation State Committee for Construction and Housing (Russian abbreviation - GOSSTROY Russia) and its local agencies in each region; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | Federal Land Cadastre Service of Russia (Russian abbreviation – Roszemkadastr); |
|----------------|---------------------------------------------------------------------------------------|

| 3)   | Minister of Natural Resources and Environment of the Russian Federation; |
|----------------|--------------------------------------------------------------------------|

| 4)   | Russian Federation State Committee for Construction, Housing and Municipal Economy and its local agencies in each region; |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

----

----

|                               |   | Notes  |   |   | As of 31 December 2009 |   |        | As of 31 December 2008 |   |
|------------------------------------|--------|--------|--------|--------|------------------------|--------|-------------|------------------------|--------|
|                               |   |   |   |   | ‘000 USD         |   |        | ‘000 USD         |   |
| ASSETS                             |   |   |   |   |                   |   |        |                   |   |
| Current assets                     |   |   |   |   |                   |   |        |                   |   |
| Cash and cash equivalents          |   |   | 15     |   |                   | $      | 13          |                   |   | $ | 33 |   |
| Short-term loans                   |   |   | 12     |   |                   |   | 570         |                   |   |   | - |   |
| Other receivables                  |   |   | 13     |   |                   |   | 208         |                   |   |   | 341 |   |
| Other current assets               |   |   | 14     |   |                   |   | 68          |                   |   |   | 2 |   |
| Total current assets               |   |   |   |   |                   |   | 859         |                   |   |   | 376 |   |
|                               |   |   |   |   |                   |   |        |                   |   |   |   |   |
| Non-current assets                 |   |   |   |   |                   |   |        |                   |   |   |   |   |
| Trading property                   |   |   | 11     |   |                   |   | 22 613      |                   |   |   | 15 504 |   |
| Property, plant and equipment, net |   |   | 9      |   |                   |   | 39          |                   |   |   | 65 |   |
| Intangible assets                  |   |   | 10     |   |                   |   | 12 901      |                   |   |   | 13 851 |   |
| Deferred tax assets                |   |   | 17     |   |                   |   | 504         |                   |   |   | 212 |   |
| Other non-current assets           |   |   |   |   |                   |   | -           |                   |   |   | - |   |
| Total non-current assets           |   |   |   |   |                   |   | 36 057      |                   |   |   | 29 632 |   |
|                               |   |   |   |   |                   |   |        |                   |   |   |   |   |
| TOTAL ASSETS                       |   |   |   |   |                   | $      | 36 916      |                   |   | $ | 30008 |   |
|                               |   |   |   |   |                   |   |        |                   |   |   |   |   |
| LIABILITIES                        |   |   |   |   |                   |   |        |                   |   |   |   |   |
| Current liabilities                |   |   |   |   |                   |   |        |                   |   |   |   |   |
| Other payables                     |   |   | 18     |   |                   | $      | 1 290       |                   |   | $ | 597 |   |
| Short-term borrowings              |   |   | 19     |   |                   |   | 477         |                   |   |   | 68 |   |
| Total current liabilities          |   |   |   |   |                   |   | 1 767       |                   |   |   | 665 |   |
|                               |   |   |   |   |                   |   |        |                   |   |   |   |   |
| Long-term liabilities              |   |   |   |   |                   |   |        |                   |   |   |   |   |
| Long-term borrowings               |   |   | 19     |   |                   |   | -           |                   |   |   | 75 |   |
| Deferred tax liabilities           |   |   | 17     |   |                   |   | 2 539       |                   |   |   | 2 530 |   |
| Total long-term liabilities        |   |   |   |   |                   |   | 2 539       |                   |   |   | 2 605 |   |
|                               |   |   |   |   |                   |   |        |                   |   |   |   |   |
| EQUITY                             |   |   |   |   |                   |   |        |                   |   |   |   |   |
| Share capital                      |   |   | 20     |   |                   |   | 32 384      |                   |   |   | 28 404 |   |
| Share premium                      |   |   |   |   |                   |   | (8 314 | )                      |   |   | (11 572 | ) |
| Revaluation reserve                |   |   |   |   |                   |   | 9 378       |                   |   |   | 10 111 |   |
| Translational reserve              |   |   |   |   |                   |   | 21          |                   |   |   | 22 |   |
| Retained earnings                  |   |   |   |   |                   |   | (859        | )                      |   |   | (227 | ) |
| Total equity                       |   |   |   |   |                   |   | 32 610      |                   |   |   | 26 738 |   |
|                               |   |   |   |   |                   |   |        |                   |   |   |   |   |
| TOTAL LIABILITIES AND EQUITY       |   |   |   |   |                   | $      | 36 916      |                   |   | $ | 30 008 |   |

----

|                                                  |   | Notes  |   |   | For the year ended 31 December 2009 |   |   | For the year ended 31 December 2008 |   |
|-------------------------------------------------------|--------|--------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                                  |   |   |   |   | ‘000 USD                      |   |   | ‘000 USD                      |   |
| Income                                                |   |   |   |   |                                |   |   |                                |   |
| Commissions fee                                       |   |   |   |   | $                                   | -      |   |                                | $      | 338 |   |
| Other operating income                                |   |   |   |   |                                | -      |   |                                |   | 7 |   |
| Total income                                          |   |   |   |   |                                | -      |   |                                |   | 345 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |
| Operating expenses                                    |   |   | 7      |   |                                |   | (572   | )                                   |   |   | (1 326 | ) |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |   |
| Exchange difference gain/(loss)                       |   |   |   |   |                                |   | (179   | )                                   |   |   | 10 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |   |
| Operating income/(loss)                               |   |   |   |   |                                |   | (751   | )                                   |   |   | (971 | ) |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |   |
| Interest income                                       |   |   | 8      |   |                                |   | -      |                                |   |   | - |   |
| Interest expenses                                     |   |   | 8      |   |                                |   | (6     | )                                   |   |   | (5 | ) |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |   |
| Income/(loss) before tax                              |   |   |   |   |                                |   | (757   | )                                   |   |   | (976 | ) |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |   |
| Income tax                                            |   |   | 16,17  |   |                                |   | 125    |                                |   |   | 189 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |   |
| Net income/(loss)                                     |   |   |   |   |                                | $      | (632   | )                                   |   | $ | (787 | ) |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |   |   |
| Basic and diluted income(loss) per sharein US dollars |   |   | 21     |   |                                | $      | (0,05  | )                                   |   | $ | (0,10 | ) |
| Attributable to:                                      |   |   |   |   |                                |   |   |                                |   |   |   |   |
| shareholders of Company                               |   |   |   |   |                                | $      | (0,05  | )                                   |   | $ | (0,10 | ) |
| non-controlling interests                             |   |   |   |   |                                | $      | -      |                                |   | $ | - |   |

----

|                               |   | As of 31 December 2008 |    |   | As of 31 December 2007 |   |
|------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                               |   | ‘000 USD         |    |   | ‘000 USD         |   |
| ASSETS                             |   |                   |    |   |                   |   |
| Current assets                     |   |                   |    |   |                   |   |
| Cash and cash equivalents          |   | $                      | 33      |   |                   | $      | 47 |   |
| Short-term loans                   |   |                   | -       |   |                   |   | 3 770 |   |
| Other receivables                  |   |                   | 341     |   |                   |   | 43 |   |
| Other current assets               |   |                   | 2       |   |                   |   | 31 |   |
|                               |   |                   |    |   |                   |   |   |   |
| Total current assets               |   |                   | 376     |   |                   |   | 3 891 |   |
|                               |   |                   |    |   |                   |   |   |   |
| Non-current assets                 |   |                   |    |   |                   |   |   |   |
| Trading property                   |   |                   | 15 504  |   |                   |   | 8 880 |   |
| Property, plant and equipment, net |   |                   | 65      |   |                   |   | 49 |   |
| Intangible assets                  |   |                   | 13 851  |   |                   |   | 9 390 |   |
| Deferred tax assets                |   |                   | 212     |   |                   |   | 53 |   |
| Other non-current assets           |   |                   | -       |   |                   |   | 343 |   |
| Total non-current assets           |   |                   | 29 632  |   |                   |   | 18 715 |   |
|                               |   |                   |    |   |                   |   |   |   |
| TOTAL ASSETS                       |   | $                      | 30 008  |   |                   | $      | 22 606 |   |
|                               |   |                   |    |   |                   |   |   |   |
| LIABILITIES                        |   |                   |    |   |                   |   |   |   |
| Current liabilities                |   |                   |    |   |                   |   |   |   |
| Other payables                     |   | $                      | 597     |   |                   | $      | 32 |   |
| Short-term borrowings              |   |                   | 68      |   |                   |   | 6 |   |
| Total current liabilities          |   |                   | 665     |   |                   |   | 38 |   |
|                               |   |                   |    |   |                   |   |   |   |
| Long-term liabilities              |   |                   |    |   |                   |   |   |   |
| Long-term borrowings               |   |                   | 75      |   |                   |   | 64 |   |
| Deferred tax liabilities           |   |                   | 2 530   |   |                   |   | 2 257 |   |
| Total long-term liabilities        |   |                   | 2 605   |   |                   |   | 2 321 |   |
|                               |   |                   |    |   |                   |   |   |   |
| TOTAL LIABILITIES                  |   |                   | 3 270   |   |                   |   | 2 359 |   |
|                               |   |                   |    |   |                   |   |   |   |
| EQUITY                             |   |                   |    |   |                   |   |   |   |
| Share capital                      |   |                   | 28 404  |   |                   |   | 19 664 |   |
| Share premium                      |   |                   | (11 572 | )      |                   |   | (7 133 | ) |
| Revaluation reserve                |   |                   | 10 111  |   |                   |   | 7 133 |   |
| Translational reserve              |   |                   | 22      |   |                   |   | 23 |   |
| Retained earnings                  |   |                   | (227    | )      |                   |   | 560 |   |
| Total equity                       |   |                   | 26 738  |   |                   |   | 20 247 |   |
|                               |   |                   |    |   |                   |   |   |   |
| TOTAL LIABILITIES AND EQUITY       |   | $                      | 30 008  |   |                   | $      | 22 606 |   |

----

|                                                   |   | For the year ended December 31, 2008 |   |   | For the year ended December 31, 2007 |   |
|--------------------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|
|                                                   |   | ‘000 USD                       |   |   | ‘000 USD                       |   |
| Revenue                                                |   |                                 |   |   |                                 |   |
| Commissions fee                                        |   | $                                    | 338    |   |                                 | $      | 881 |   |
| Other operating income                                 |   |                                 | 7      |   |                                 |   |   |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Total revenues                                         |   |                                 | 345    |   |                                 |   | 881 |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Operating expenses                                     |   |                                 | (1 326 | )      |                                 |   | (414 | ) |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Exchange difference gain/(loss)                        |   |                                 | 10     |   |                                 |   | 34 |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Operating income/(loss)                                |   |                                 | (971   | )      |                                 |   | 501 |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Interest income                                        |   |                                 | -      |   |                                 |   | 17 |   |
| Interest expenses                                      |   |                                 | (5     | )      |                                 |   | (2 | ) |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Income/(loss) before tax                               |   |                                 | (976   | )      |                                 |   | 516 |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Income tax                                             |   |                                 | 189    |   |                                 |   | 44 |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Net income (loss)                                      |   | $                                    | (787   | )      |                                 | $      | 560 |   |
|                                                   |   |                                 |   |   |                                 |   |   |   |
| Basic and diluted income(loss) per share in US dollars |   | $                                    | (0,10  | )      |                                 | $      | 0,11 |   |
| Attributable to:                                       |   |                                 |   |   |                                 |   |   |   |
| shareholders of Company                                |   | $                                    | (0,10  | )      |                                 | $      | 0,11 |   |
| non-controlling interests                              |   | $                                    | -      |   |                                 | $      | - |   |

----

----

|     |   | 31 Dec 2007 |   | 31 Dec 2008 |   |   | 31 Dec 2009 |   |
|----------|--------|-------------|--------|-------------|--------|--------|-------------|--------|
| Kurortny |   |        | 6 212  |        |   | 11 094 |        |   |   | 14 820 |   |
| Orbita   |   |        | 2 668  |        |   | 4 410  |        |   |   | 7 793 |   |
|     |   |        |   |        |   |   |        |   |   |   |   |
| Total    |   |        | 8 880  |        |   | 15 504 |        |   |   | 22 613 |   |

----

|                                                                       |   | Total   |            |   | Less than 1year |   |       | 1-3 years |   | 3-5 years | Morethan 5years |
|----------------------------------------------------------------------------|--------|---------|-----------------|--------|---------------------------|--------|------------|----------------|--------|----------------|----------------------|
| Operating Lease Obligations (1) (2) (6)                                    |   | $       | 985,750         |   |                      | $      | 456,750    |           |   | $              | 529,000              |   | - | - |
| Right of First Refusal Obligations (3)(4)(5)                               |   | $       | 11,548,000      |   |                      | $      | 11,548,000 |           |   |           | -                    |   | - | - |
| Other Long-Term Liabilities Reflected on the Company’s Balance Sheet |   |  $ | 3,561,000  |   |                      | $      | 1,116,000  |           |   | $              | 2,445,000            |   | - | - |
| Total                                                                      |   | $       | 16,094,750      |   |                      | $      | 13,120,750 |           |   | $              | 2,974,000            |   | - | - |

| 1. | Lease Agreement No 104, government owned land in Gagarin, from June 19, 2007 to June 19, 2011. Annual lease pmt: $16,000. See Exhibit 10.5, attached hereto.                                                                                                                                                                            |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | Lease Agreement, AP-12-08-08. RIOKOM Office lease in Moscow, Russia. From August 1, 2008 to June 30, 2009 extended orally to April 27, 2010. Monthly lease pmt: $8,000.                                                                                                                                                                      |
| 3. | RIOKOM Investment Contract No 3, as amended by Addendum No. 1, for the development of Multi Dwelling Units in Sochi (“Kurortny”), from July 5, 2007 to December 31, 2011. Total contract amount $5,130,000 plus 50% ($484,000) partial lease payment per annum. See Exhibits 10.2 and 10.18, attached hereto.               |
| 4. | ICECOM Investment Contract No 4, as amended by Addendum No. 1, for the development of Multi Dwelling Units in Sochi (“Kurortny”), from January 10 2008 to December 31, 2011. Total contract amount $5,130,000 plus 50% ($484,000) partial lease payment per annum.  See Exhibits 10.3 and 10.17, attached hereto. |
| 5. | Contract No. 225-08, from February 18, 2008 to February 18, 2009, between RIOKOM and Architectural Firm of Tarasov for the development of the Master Plan for construction project of 7-stores MDU in Gagarin (“Orbita”). Total contract - $320,000. See Exhibit 10.7, attached hereto.                                          |
| 6. | Lease Agreement No. 4900003888, total lease amount is approximately $525,000 per year. The lease agreement payment is revised after the Company completes another phase of the project by the addendum to the main lease agreement. See Exhibit 10.4, attached hereto.                                                             |

| Name               |   | Positions                                                                            |   | Date ofBirth |   | Date First Electedor Appointed aDirector  |   | End of Term ofService, ifapplicable |
|--------------------|--------|-------------------------------------------------------------------------------------------|--------|-------------------|--------|--------------------------------------------------------------------|--------|---------------------------------------------------------|
| Roman Plavnik      |   | Founder, Chief Executive Officer, President, Chairman of the Board of Directors           |   | 1/26/1961         |   | October 2005                                                       |   | October 2011                                            |
| Nazar Lappa        |   | Vice President of Investment Strategies and VP Investor Relations Director and co-Founder |   | 5/14/1967         |   | October 2005                                                       |   | October 2011                                            |
| Svetlana Gromova   |   | Vice President of Legal Affairs and Secretary                                             |   | 7/2/1981          |   | January  2007                                            |   | January 2013                                            |
| Michael Lakshin    |   | Vice President of Marketing and Director/US Operations                                    |   | 7/26/1963         |   | June 2007                                                          |   | June 2013                                               |
| Konstantin Plavnik |   | Vice President of Business Analytics and Director                                         |   | 5/18/1985         |   | January 2007                                                       |   | January 2013                                            |
| Sergey Vokhontsev  |   | Chief Operations Officer, Director                                                        |   | 10/20/1958        |   | October 2008                                                       |   | October 2011                                            |
| Oleg Sultanov      |   | Chief Financial Officer                                                                   |   | 3/21/1985         |   | N/A                                                                |   | N/A                                                     |
| Dmitry Sednev      |   | Vice President of Construction and Development                                            |   | 9/28/1967         |   | N/A                                                                |   | N/A                                                     |

----

----

----

|                          |   |                   |   |
|-------------------------------|--------|------------------------|--------|
|                          |   | ManagementCompensation |   |   | Director Compensation |   |   | Total |   |
|                          |   | Paid                   |   |   | deferred |   |   | paid |   |   | deferred |   |   | Paid |   |   | deferred |   |
| Roman Plavnik                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | 21,000 |   |   |   | 21,000 |   |   |   | - |   |   |   | - |   |   |   | 21,000 |   |   |   | 21,000 |   |
| 2008                          |   |                   | 42,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 42,000 |   |   |   | - |   |
| 2007                          |   |                   | 18,263 |   |   |   | - |   |   |   | 63,313 |   |   |   | - |   |   |   | 79,567 |   |   |   | - |   |
| Nazar Lappa                   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | 10,200 |   |   |   | 10,200 |   |   |   | - |   |   |   | - |   |   |   | 10,200 |   |   |   | 10,200 |   |
| 2008                          |   |                   | 20,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,400 |   |   |   | - |   |
| 2007                          |   |                   | 6,493  |   |   |   | - |   |   |   | 30,666 |   |   |   | - |   |   |   | 37,149 |   |   |   | - |   |
| Svetlana Gromova              |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | 13,500 |   |   |   | 22,500 |   |   |   | - |   |   |   | 22,500 |   |   |   | 13,500 |   |   |   | 22,500 |   |
| 2008                          |   |                   | 36,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 36,000 |   |   |   | - |   |
| 2007                          |   |                   | 15,016 |   |   |   | - |   |   |   | 30,656 |   |   |   | - |   |   |   | 45,672 |   |   |   | - |   |
| Konstantin  Plavnik |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| 2008                          |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| 2007                          |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Michael Lakshin               |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | 31,500 |   |   |   | 40,500 |   |   |   | - |   |   |   | 40,500 |   |   |   | 31,500 |   |   |   | 41,500 |   |
| 2008                          |   |                   | 72,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 72,000 |   |   |   | - |   |
| 2007                          |   |                   | 17,240 |   |   |   | - |   |   |   | - |   |   |   | 28,000 |   |   |   | 45,240 |   |   |   | - |   |
| Sergey Vokhontsev             |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | 16,200 |   |   |   | 16,200 |   |   |   | - |   |   |   | 16,200 |   |   |   | 16,200 |   |   |   | 16,200 |   |
| 2008                          |   |                   | 32,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 32,400 |   |   |   | - |   |
| 2007                          |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Dmitry Sednev                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | 13,500 |   |   |   | 22,500 |   |   |   | - |   |   |   | - |   |   |   | 13,500 |   |   |   | 22,500 |   |
| 2008                          |   |                   | 36,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 36,000 |   |   |   | - |   |
| 2007                          |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oleg Sultanov                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                          |   |                   | 9,000  |   |   |   | 15,000 |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |   |   | 15,000 |   |
| 2008                          |   |                   | 6,000  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |   |   | - |   |
| 2007                          |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

| Terms of Directorships  |
|----------------------------------------|
| Name                                   | Date ofAppointment | Date of Expiration ofAppointment |
| Dr. Roman Plavnik                      | October 2005 | October 2011 |
| Mr. Nazar Lappa                        | October 2005 | October 2011 |
| Mr. Konstantin Plavnik                 | January 2007 | January 2013 |
| Ms. Svetlana Gromova                   | January 2007 | January 2013 |
| Mr. Michael Lakshin                    | June 2007 | June 2013 |
| Mr. Sergey Vokhontsev                  | October 2008 | October 2011 |

| Name and Position |   | Number ofShares Held |      |   | Percentage ofShares Held (%) (1) |   |
|-----------------------------|--------|--------------------------------|-----------|--------|------------------------------------------------------|--------|
| Roman Plavnik               |   |                           | 5,474,693 |   |                                                 |   | 50.72 | % |
| Nazar Lappa                 |   |                           | 335,039   |   |                                                 |   | 3.10 | % |
| Michael Lakshin             |   |                           | 4,567     |   |                                                 |   | 0,04 | % |
| Svetlana Gromova            |   |                           | 315,049   |   |                                                 |   | 2.92 | % |
| Konstantin Plavnik          |   |                           | 177,102   |   |                                                 |   | 1,64 | % |
| Sergey Vokhontsev           |   |                           | 166,669   |   |                                                 |   | 1,54 | % |
| Oleg Sultanov               |   |                           | 130,543   |   |                                                 |   | 1.21  | % |
| Dmitry Sednev               |   |                           | 44,735    |   |                                                 |   | 0,41 | %  |

|     (1) | The percentage ownership positions are based on 10,794,811 shares outstanding as of August 16, 2010. |
|------------------------|------------------------------------------------------------------------------------------------------|

----

----

----

----

| (5) | Conditions governing manner in which annual general meetings and extraordinary general meetings of shareholders are convoked, including conditions of admission: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (6) | Limitations on rights to own securities of the Registrant: |
|-----|------------------------------------------------------------|

| (7) | Provisions of Company’s articles, charter or by-laws that have the effect of delaying, deferring or preventing a change in control of the Registrant and that would operate only with respect to a merger, acquisition or corporate restructuring involving the Registrant: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)  | Provisions, if any, governing the ownership threshold above which shareholder ownership must be disclosed. |
|-----------|------------------------------------------------------------------------------------------------------------|

| (9)  | Comparison of laws of US with the items described in Items 2 through 8. |
|-----------|-------------------------------------------------------------------------|

| (10) | Conditions imposed by the memorandum and articles of association governing changes in capital that are more stringent than required by the law of the BVI. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.     | Residential Investment Agreement by and between the Administration of the City of Sochi and Somo, Ltd. (“the Administration) executed on August 6, 2007. Pursuant to the Agreement, the City of Sochi grants ownership of 90.6% of the property upon its completion to the Somo, however Section 2.12 gives the government the right to determine the use of the apartment building.  The Registrant’s subsidiary Somo receives the right to build and develop the Kurortny project with its own funding.  Upon completion, Somo will be entitled to ownership of 90.6% of the total area of the project and the City of Sochi will be entitled to ownership of 9.4%.  Upon completion, Somo shall sell at least 10% of its space as apartment units for the benefit of the citizenry of Russia.  Phase I of the project is completed upon the preparation of the building yard for construction, obtaining the permits to build on the land and fulfillment of technical conditions.  Phase II is the construction of the apartment building.  Phase III is the assignment by the government of rights to the investor for the use of the apartment building.  The term of completion of the project may be amended by written agreement of both parties.  The agreement is assignable subject to conditions in the agreement.  Failure of the Registrant to meet the following conditions will entitle the Administration to unilaterally cancel the agreement: to obtain insurance, failure to obtain insurance and guarantees to the Administration; failure to provide estimates of the costs of completion of the project during Phase I of the project; failure to obtain the funds necessary to complete the project. Phase I has been competed. Pursuant to the extension of the lease (see #4 below) the construction completion date is  March 1, 2011. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 2.     | Contract #3 on residential investment in construction of dwelling house executed on June 5, 2007 (as amended by Addendum No. 1 executed on February 1, 2010). Agreement between the builder, Somo and the investor, Riokom. Investor promises to transfer funds to Somo for the building of the luxury apartments.  Agreement makes an estimate for the construction costs. According to the agreement Riokom receives a one-half undivided interest in the Kurortny property. Riokom’s sublease on the property commenced on July 5, 2007 and ends on March 1, 2011.  Riokom has to invest the total sum of approximately US$5,130,000, plus to pay 50% of the Sublease Fee to Some for using this lot of the land. Total amount of the Sublease Fee is US$484,000; Riokom has to pay US$242,000 for the entire term of the lease. Upon completion of the construction Riokom will receive one half (1/2) ownership of the common ownership of the luxury apartments. Builder obliges to complete construction by December 31, 2011. Somo provides a three year limited warranty on the soundness of the construction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 3.     | Contract #4 on residential investment in construction of dwelling house executed on January 10, 2008 (as amended by Addendum No. 1 executed on February 1, 2010).. Agreement between the builder, Somo and the investor, Icecom. Agreement between the builder, Somo and the investor, Icecom. Investor promises to transfer funds to Somo for the building of the luxury apartments.  Agreement makes an estimate for the construction costs. According to the agreement Icecom receives a one-half undivided interest in the Kurortny property. Icecom’s sublease on the property commenced on July 5, 2007 and ends on March 1, 2011.  Icecom has to invest the total sum of approximately US$5,130,000, plus to pay 50% of the Sublease Fee to Somo for using this lot of the land. Total amount of the Sublease Fee is US$484,000; Icecom has to pay US$242,000 for the entire term of the lease. Upon completion of the construction Icecom will receive one half (1/2) ownership of the common ownership of the luxury apartments. Builder obliges to complete construction by December 31, 2011.  Somo provides a three year limited warranty on the soundness of the construction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.     | Lease Agreement No. 4900003888 entered into by the Administration of the City of Sochi granting the right of tenancy on the parcel of land in Sochi to Somo.  The size of the parcel of land under the agreement is 3,706 square meters located on Kurortny Prospect, Sochi.  The tenant is granted the right to build an 84 story apartment complex with an attaching commercial infrastructure consisting of offices, stores, 30 car parking garage. The lease on the land is valid through March 1, 2011.  The annual rental rate on the property is approximately $525,000 and the rent is due quarterly at the end of each fiscal quarter.Incorporated in this summary are all supplements to the agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.     | Contract on Tenancy #104 of parcel of land being in state use in the town of Gagarin, dated June 19, 2007. The City of Administration of Municipal formation of Gagarin leases a parcel of land in the district of Smolensk to Riokom, Ltd. to construct a multi-unit apartment building.  The rent on the parcel is fixed for a period between June 19, 2007 through June 19, 2009 (which has been extended under #6 below). Lessee has the right of first refusal on the renewal of the lease.  Annual lease payment is $16,000.                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 6.     | The addendum to the original lease agreement No 104 from June 06, 2007. Based on the necessity to complete the construction of the multi-storey apartment building located in Gagarin, Smolenskii region, the Landlord and Tenant agreed to extend the term of the original Lease Agreement No 104 for two more years from June 19, 2009 to June 19, 2011.Incorporated in this summary are all supplements to the agreement.                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 7.     | Contract No. 225/08, from February 18, 2008 to February 18, 2009, between Riokom and Architectural Firm of Tarasov for the development of the Master Plan for construction project of 7-stores MDU in Gagarin (“Orbita”). Total contract - $320,000. This contract has expeired.                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 8.     | Lease Agreement, AP-12-08/08. RIOKOM Office lease in Moscow, Russia. From August 1, 2008 to June 30, 2009. Monthly lease pmt: $8,000. Lease Agreement between the Joint stock company “KASISS” (in Russian – «Касисс»), (the “Landlord”) and OOO Riokom (the “Tenant”) for the lease of the business office totaling 252,8 sq. meters located at Russia, Moscow, 33/1 Molodogvardeiskaya Street, from September 1, 2009 to July 31, 2010. This lease agreement is granting the right of the first refusal to the Tenant and after July 31, 2010 it has been prolonging automatically on a monthly basis. Monthly lease payment is $10,000. |

----

----

|               |   | For the year ended December 31, |   |
|--------------------|--------|----------------------------------------------------------|--------|
|               |   | 2008                                                     |   |   | 2009 |   |
|               |   | (U.S. dollars in thousands)                              |   |
| Audit fees(1)      |   |                                                     | 110    |   |   |   | 9 |   |
| Audit-Related Fees |   |                                                     | 0      |   |   |   | 0 |   |
| Tax fees           |   |                                                     | 6      |   |   |   | 40 |   |
| Total fees         |   |                                                     | 116    |   |   |   | 49 |   |

| (1) | “Audit fees” means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal auditors for the audit of our annual financial statements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.1   | Amended and Restated Memorandum and Articles of Association, (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                              |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1  | Residential Investment Agreement between Administration of Sochi and Somo, Ltd.  executed on August 6, 2007 (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference) .    |
| 10.2  | Agreement between the builder, Somo and Riokom (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                            |
| 10.3  | Agreement between the builder, Somo and Icecom (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                            |
| 10.4  | Lease Agreement No. 4900003888 (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                            |
| 10.5  | Contract on Tenancy #104 (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                                  |
| 10.6  | The Addendum to the Original Lease Agreement No 104 (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                  |
| 10.7  | Lease Agreement, AP-12-08-08. Riokom Office Lease in Moscow, Russia (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                       |
| 10.8  | Employment Agreement (Gromova) (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                            |
| 10.9  | Employment Agreement (Lappa) (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                              |
| 10.10 | Employment Agreement (Lakshin) (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                            |
| 10.11 | Employment Agreement (L Plavnik) (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                          |
| 10.12 | Employment Agreement (Sednev) (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                             |
| 10.13 | Employment Agreement (R Plavnik) (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                          |
| 10.14 | Employment Agreement (Sultanov) (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                                           |
| 10.15 | Employment Agreement (Vokhontsev) (previously filed).                                                                                                                                                                                                                       |
| 10.16 | Contract No 225-08 between Riokom and Tarasov, (filed with the Company’s registration statement on Form 20-F filed on March 31, 2010 and incorporated herein by reference)                                                                                       |
| 10.17 | Addendum No. 1 to the investment agreement No. 4 (filed with the Company’s registration statement on Form 20-F/A filed on August 25, 2010 and incorporated herein by reference)                                                                                       |
| 10.18 | Addendum No. 1 to the investment agreement No. 3(filed with the Company’s registration statement on Form 20-F/A filed on August 25, 2010 and incorporated herein by reference)                                                                                        |
| 12.1  | Certification of chief executive officer pursuant to Section 302                                                                                                                                                                                                            |
| 12.2  | Certification of chief financial officer pursuant to Section 302                                                                                                                                                                                                            |
| 13.1  | Certification of chief executive officer pursuant to Section 906                                                                                                                                                                                                       |
| 13.2  | Certification of chief financial officer pursuant to Section 906                                                                                                                                                                                                            |

----

|                   | KONSTA REAL ESTATE PROPERTIES LTD. |                                  |
|------------------------|------------------------------------|---------------------------------------|
|                   |                               |                                  |   |
| Dated: August 31, 2010 | By:                                | /s/ Roman Plavnik                |   |
|                   |                               | Roman Plavnik                         |   |
|                   |                               | President and Chief Executive Officer |   |
|                   |                               |                                  |   |
|                   |                               |                                  |   |
|                   |                               | /s/ Oleg Sultanov                     |   |
|                   |                               | Oleg Sultanov                         |   |
|                   |                               | Chief Financial Officer               |   |

----

|   | Intercom-AuditAUDITING COMPANYAddress: 2-13, 3-th Ulitsa Yamskogo polya,125124 Moscow, Russian FederationTel.: +7 (495) 937-34-51,E-mail: info@intercom-audit.ru,Internet: www.intercom-audit.ru |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                         |   | Notes  |   |   | As of 31 December 2009 |   |        |   As of 31 December 2008 |   |   |   As of 31 December 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------------------|--------|-------------|-------------------------------|--------|--------|-------------------------------|--------|
| ASSETS                                                                                                                                                                       |   |   |   |   |                   |   |        |                          |   |   |                          |   |
| Current assets                                                                                                                                                               |   |   |   |   |                   |   |        |                          |   |   |                          |   |
| Cash and cash equivalents                                                                                                                                                    |   |   | 15     |   |                   | $      | 13          |                          |   | $      | 33                            |   |   | $ | 47 |   |
| Short-term loans                                                                                                                                                             |   |   | 12     |   |                   |   | 570         |                          |   |   | -                             |   |   |   | 3 770 |   |
| Other receivables                                                                                                                                                            |   |   | 13     |   |                   |   | 208         |                          |   |   | 341                           |   |   |   | 43 |   |
| Other current assets                                                                                                                                                         |   |   | 14     |   |                   |   | 68          |                          |   |   | 2                             |   |   |   | 31 |   |
| Total current assets                                                                                                                                                         |   |   |   |   |                   |   | 859         |                          |   |   | 376                           |   |   |   | 3 891 |   |
|                                                                                                                                                                         |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| Non-current assets                                                                                                                                                           |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| Trading property                                                                                                                                                             |   |   | 11     |   |                   |   | 22 613      |                          |   |   | 15 504                   |   |   |   | 8 880 |   |
| Property, plant and equipment, net                                                                                                                                           |   |   | 9      |   |                   |   | 39          |                          |   |   | 65                            |   |   |   | 49 |   |
| Intangible assets                                                                                                                                                            |   |   | 10     |   |                   |   | 12 901      |                          |   |   | 13 851                   |   |   |   | 9 390 |   |
| Deferred tax assets                                                                                                                                                          |   |   | 17     |   |                   |   | 504         |                          |   |   | 212                           |   |   |   | 53 |   |
| Other non-current assets                                                                                                                                                     |   |   |   |   |                   |   | -           |                          |   |   | -                             |   |   |   | 343 |   |
| Total non-current assets                                                                                                                                                     |   |   |   |   |                   |   | 36 057      |                          |   |   | 29 632                   |   |   |   | 18 715 |   |
|                                                                                                                                                                         |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                                 |   |   |   |   |                   | $      | 36 916      |                          |   | $      | 30008                         |   |   | $ | 22606 |   |
|                                                                                                                                                                         |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                  |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| Current liabilities                                                                                                                                                          |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| Other payables                                                                                                                                                               |   |   | 18     |   |                   | $      | 1 290       |                          |   | $      | 597                           |   |   | $ | 32 |   |
| Short-term borrowings                                                                                                                                                        |   |   | 19     |   |                   |   | 477         |                          |   |   | 68                            |   |   |   | 6 |   |
| Total current liabilities                                                                                                                                                    |   |   |   |   |                   |   | 1 767       |                          |   |   | 665                           |   |   |   | 38 |   |
|                                                                                                                                                                         |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| Long-term liabilities                                                                                                                                                        |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| Long-term borrowings                                                                                                                                                         |   |   | 19     |   |                   |   | -           |                          |   |   | 75                            |   |   |   | 64 |   |
| Deferred tax liabilities                                                                                                                                                     |   |   | 17     |   |                   |   | 2 539       |                          |   |   | 2 530                         |   |   |   | 2 257 |   |
| Total long-term liabilities                                                                                                                                                  |   |   |   |   |                   |   | 2 539       |                          |   |   | 2 605                         |   |   |   | 2 321 |   |
|                                                                                                                                                                         |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| EQUITY                                                                                                                                                                       |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| Ordinary Shares, $3.00 par value, 55,000,000 shares authorized, 10,794,811 shares issued and outstandingat 31/12/2009 (9,467,968 - at 31/12/2008, 6,554,770 - at 31/12/2007) |   |   | 20     |   |                   |   | 32 384      |                          |   |   | 28 404                        |   |   |   | 19 664 |   |
| Share premium                                                                                                                                                                |   |   |   |   |                   |   | (8 314 | )                             |   |   | (11 572                       | )      |   |   | (7 133 | ) |
| Revaluation reserve                                                                                                                                                          |   |   |   |   |                   |   | 9 378       |                          |   |   | 10 111                        |   |   |   | 7 133 |   |
| Translational reserve                                                                                                                                                        |   |   |   |   |                   |   | 21          |                          |   |   | 22                            |   |   |   | 23 |   |
| Retained earnings                                                                                                                                                            |   |   |   |   |                   |   | (859        | )                             |   |   | (227                          | )      |   |   | 560 |   |
| Total equity attributable to shareholders of Company                                                                                                                         |   |   |   |   |                   |   | 32 610      |                          |   |   | 26 738                        |   |   |   | 20 247 |   |
| Non-controlling interests                                                                                                                                                    |   |   | 4.2    |   |                   |   | -           |                          |   |   | -                             |   |   |   | - |   |
| Total equity                                                                                                                                                                 |   |   |   |   |                   |   | 32 610      |                          |   |   | 26 738                        |   |   |   | 20 247 |   |
|                                                                                                                                                                         |   |   |   |   |                   |   |        |                          |   |   |                          |   |   |   |   |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                                 |   |   |   |   |                   | $      | 36 916      |                          |   | $      | 30 008                        |   |   | $ | 22 606 |   |

----

----

|                                                  |   | Notes  |   |   | For the year ended 31 December 2009 |   |   | For the year ended 31 December 2008 |   |   | For the year ended 31 December 2007 |   |
|-------------------------------------------------------|--------|--------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |
| Income                                                |   |   |   |   |                                |   |   |                                |   |   |                                |   |
| Commissions fee                                       |   |   |   |   | $                                   | -      |   |                                | $      | 338    |                                |   | $ | 881 |   |
| Other operating income                                |   |   |   |   |                                | -      |   |                                |   | 7      |                                |   |   | - |   |
| Total income                                          |   |   |   |   |                                | -      |   |                                |   | 345    |                                |   |   | 881 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |
| Operating expenses                                    |   |   | 7      |   |                                |   | (572   | )                                   |   |   | (1 326                              | )      |   |   | (414 | ) |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| Exchange difference gain/(loss)                       |   |   |   |   |                                |   | (179   | )                                   |   |   | 10                                  |   |   |   | 34 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| Operating income/(loss)                               |   |   |   |   |                                |   | (751   | )                                   |   |   | (971                                | )      |   |   | 501 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| Interest income                                       |   |   | 8      |   |                                |   | -      |                                |   |   | -                                   |   |   |   | 17 |   |
| Interest expense                                      |   |   | 8      |   |                                |   | (6     | )                                   |   |   | (5                                  | )      |   |   | (2 | ) |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| Income/(loss) before tax                              |   |   |   |   |                                |   | (757   | )                                   |   |   | (976                                | )      |   |   | 516 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| Income tax                                            |   |   | 16,17  |   |                                |   | 125    |                                |   |   | 189                                 |   |   |   | 44 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| Net income/(loss)                                     |   |   |   |   |                                | $      | (632   | )                                   |   | $      | (787                                | )      |   | $ | 560 |   |
|                                                  |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| Basic and diluted income(loss) per sharein US dollars |   |   | 21     |   |                                | $      | (0,05  | )                                   |   | $      | (0,10                               | )      |   | $ | 0,11 |   |
| Attributable to:                                      |   |   |   |   |                                |   |   |                                |   |   |                                |   |   |   |   |   |
| shareholders of Company                               |   |   |   |   |                                | $      | (0,05  | )                                   |   | $      | (0,10                               | )      |   | $ | 0,11 |   |
| non-controlling interests                             |   |   |   |   |                                | $      | -      |                                |   | $      | -                                   |   |   | $ | - |   |

----

----

|                                                                   |   | For the year ended 31 December 2009 |   |   | For the year ended 31 December 2008 |   |        | For the year ended 31 December 2007 |   |
|------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|-------------|-------------------------------------|--------|
|                                                                   |   |                                |   |   |                                |   |        |                                |   |
| Net Income (Loss)                                                      |   | $                                   | (632   | )      |                                | $      | (787        | )                                   |   | $ | 560 |   |
| Other comprehensive income (loss)                                      |   |                                |   |   |                                |   |        |                                |   |   |   |   |
| Foreign exchange difference                                            |   |                                | (290   | )      |                                |   | (1 175 | )                                   |   |   | 23 |   |
| Revaluation of tenant right                                            |   |                                | (555   | )      |                                |   | 4 427  |                                |   |   | 9 386 |   |
| Income tax relating to components of other comprehensive (loss)/income |   |                                | 111    |   |                                |   | (275        | )                                   |   |   | (2 253 | ) |
| Other comprehensive income (loss), net of tax                          |   |                                | (734   | )      |                                |   | 2 977  |                                |   |   | 7 156 |   |
| Comprehensive income (loss)                                            |   | $                                   | (1366  | )      |                                | $      | 2190        |                                |   | $ | 7 716 |   |
| Attributable to:                                                       |   |                                |   |   |                                |   |        |                                |   |   |   |   |
| shareholders of Company                                                |   | $                                   | (1366  | )      |                                | $      | 2190        |                                |   | $ | 7716 |   |
| non-controlling interests                                              |   | $                                   | -      |   |                                | $      | -           |                                |   | $ | - |   |

----

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|                       | Note   |   |   |  Share capital |   |   | Share premium |   |        | Revaluation reserve |   |   | Translational reserve |   |   | Retained earnings |   |   | Equity attributable to the shareholders of the company |   |   | Non-controlling interests |   |   |  Total Equity |   |
|----------------------------|--------|--------|--------|---------------------|--------|--------|---------------|--------|-------------|---------------------|--------|--------|-----------------------|--------|--------|-------------------|--------|--------|--------------------------------------------------------|--------|--------|---------------------------|--------|--------|--------------------|--------|
| Equity at 01 January 2007  |   |   |   | $                   | -      |   |          | $      | -           |                |   | $      | -                     |   |   | $                 | -      |   |                                                   | $      | -      |                      |   | $      | -                  |   |   | $ | - |   |   | $ | - |   |
| Issue of shares            | 20     |   |   |                | 19 664 |   |          |   | (7 133      | )                   |   |   | -                     |   |   |              | -      |   |                                                   |   | -      |                      |   |   | 12 531             |   |   |   | - |   |   |   | 12 531 |   |
| Comprehensive income       |   |   |   |                | -      |   |          |   | -           |                |   |   | 7 133                 |   |   |              | 23     |   |                                                   |   | 560    |                      |   |   | 7 716              |   |   |   | - |   |   |   | 7 716 |   |
| Equity at 31 December 2007 |   |   |   |                | 19 664 |   |          |   | (7 133 | )                   |   |   | 7 133            |   |   |              | 23     |   |                                                   |   | 560    |                      |   |   | 20 247        |   |   |   | - |   |   |   | 20 247 |   |
| Issue of shares            | 20     |   |   |                | 8 740  |   |          |   | (4 439 | )                   |   |   | -                     |   |   |              | -      |   |                                                   |   | -      |                      |   |   | 4 301              |   |   |   | - |   |   |   | 4 301 |   |
| Comprehensive income       |   |   |   |                | -      |   |          |   | -           |                |   |   | 2 978                 |   |   |              | (1     | )      |                                                   |   | (787   | )                         |   |   | 2 190              |   |   |   | - |   |   |   | 2 190 |   |
| Equity at 31 December 2008 |   |   |   |                | 28 404 |   |          |   | (11 572     | )                   |   |   | 10 111                |   |   |              | 22     |   |                                                   |   | (227   | )                         |   |   | 26 738             |   |   |   | - |   |   |   | 26 738 |   |
| Issue of shares            | 20     |   |   |                | 3 980  |   |          |   | 3 258       |                |   |   | -                     |   |   |              | -      |   |                                                   |   | -      |                      |   |   | 7 238              |   |   |   | - |   |   |   | 7 238 |   |
| Comprehensive income       |   |   |   |                | -      |   |          |   | -           |                |   |   | (733                  | )      |   |              | (1     | )      |                                                   |   | (632   | )                         |   |   | (1 366        | )      |   |   | - |   |   |   | (1 366 | ) |
| Equity at 31 December 2009 |   |   |   | $                   | 32 384 |   |          | $      | (8314       | )                   |   | $      | 9378                  |   |   | $                 | 21     |   |                                                   | $      | (859   | )                         |   | $      | 32 610             |   |   | $ | - |   |   | $ | 32610 |   |

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|                                                 | Notes  |   | For the year ended 31 December 2009 |        |   | For the year ended 31 December 2008 |   |        | For the year ended 31 December 2007 |   |
|------------------------------------------------------|--------|--------|-------------------------------------|-------------|--------|------------------------------------------|--------|-------------|------------------------------------------|--------|
| Cash flows from operating activities                 |   |   |                                |        |   |                                     |   |        |                                     |   |
| Income/(loss) before tax                             |   |   | $                                   | (757        | )      |                                     | $      | (976        | )                                        |   | $ | 516 |   |
| Adjustment for:                                      |   |   |                                |        |   |                                     |   |        |                                     |   |   |   |   |
| - Depreciation and amortization                      |   |   |                                | 26          |   |                                     |   | 18          |                                     |   |   | - |   |
| - Exchange difference gain/loss                      |   |   |                                | 179         |   |                                     |   | (10         | )                                        |   |   | (34 | ) |
|                                                 |   |   |                                | (552        | )      |                                     |   | (968        | )                                        |   |   | 482 |   |
|                                                 |   |   |                                |        |   |                                     |   |        |                                     |   |   |   |   |
| Net change in other receivables                      |   |   |                                | 133         |   |                                     |   | (298        | )                                        |   |   | (43 | ) |
| Net change in other payables                         |   |   |                                | 693         |   |                                     |   | (175        | )                                        |   |   | 31 |   |
| Net change in other assets and liabilities           |   |   |                                | (86         | )      |                                     |   | 406         |                                     |   |   | (323 | ) |
| Interest paid                                        |   |   |                                | (6          | )      |                                     |   | (5          | )                                        |   |   | (2 | ) |
| Net cash provided by(used in) operating activities   |   |   |                                | 182         |   |                                     |   | (1 040 | )                                        |   |   | 145 |   |
|                                                 |   |   |                                |        |   |                                     |   |        |                                     |   |   |   |   |
| Cash flows from investing activities                 |   |   |                                |        |   |                                     |   |        |                                     |   |   |   |   |
| Acquisition of plant, property & equipment       |   |   |                                | -           |   |                                     |   | (34         | )                                        |   |   | (49 | ) |
| Construction in progress                             |   |   |                                | (7 109 | )      |                                     |   | (6 624 | )                                        |   |   | (8 880 | ) |
| Acquisition of subsidiaries                          |   |   |                                | (95         | )      |                                     |   | (460        | )                                        |   |   | - |   |
| Borrowings to Director                               |   |   |                                | (570        | )      |                                     |   | (3 120 | )                                        |   |   | (3 770 | ) |
| Proceeds from borrowings repayment                   |   |   |                                | -           |   |                                     |   | 6 890  |                                     |   |   | - |   |
| Net cash (used in)investing activities               |   |   |                                | (7 774 | )      |                                     |   | (3 348 | )                                        |   |   | (12 669 | ) |
|                                                 |   |   |                                |        |   |                                     |   |        |                                     |   |   |   |   |
| Cash flows from financing activities                 |   |   |                                |        |   |                                     |   |        |                                     |   |   |   |   |
| Proceeds from issue of shares                        |   |   |                                | 7 238  |   |                                     |   | 4 301  |                                     |   |   | 12 531 |   |
| Repayments of borrowings                             |   |   |                                | (68         | )      |                                     |   | (6          | )                                        |   |   | - |   |
| Proceeds from borrowings                             |   |   |                                | 402         |   |                                     |   | 79          |                                     |   |   | 70 |   |
| Net cash provided by financing activities            |   |   |                                | 7 572  |   |                                     |   | 4 374  |                                     |   |   | 12 601 |   |
|                                                 |   |   |                                |        |   |                                     |   |        |                                     |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents |   |   |                                | (20         | )      |                                     |   | (14         | )                                        |   |   | 47 |   |
| Cash and cash equivalents at beginning of the year   |   |   |                                | 33          |   |                                     |   | 47          |                                     |   |   | - |   |
| Cash and cash equivalents at end of the year         | 15     |   | $                                   | 13          |   |                                     | $      | 33          |                                     |   | $ | 47 |   |

| Additionally:  |   |   |   |   |   |   |   |   |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash paid for: |   |   |   |   |   |   |   |   |   |
| Income taxes   |   |   | (6     | )      |   |   | (5     | )      |   |   | (2 | ) |
| Interest       |   |   | -      |   |   |   | (6     | )      |   |   | (8 | ) |

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| v   | Derecognizes assets and liabilities of the subsidiary (including the associated goodwill); |
|---------------|--------------------------------------------------------------------------------------------|

| v   | Derecognizes the carrying amount of non-controlling interest; |
|---------------|---------------------------------------------------------------|

| v   | Derecognizes cumulative exchange differences reported in equity; |
|---------------|------------------------------------------------------------------|

| v   | Recognizes fair value of the consideration received; |
|---------------|------------------------------------------------------|

| v   | Recognizes fair value of the remaining investment; |
|---------------|----------------------------------------------------|

| v   | Recognizes the income or loss surplus or deficit occurred as a result of the transaction; |
|---------------|-------------------------------------------------------------------------------------------|

| v   | Reclassifies to profit or loss the parent share in the components earlier recognized as other comprehensive income. |
|---------------|---------------------------------------------------------------------------------------------------------------------|

| v   | Non-controlling interest formed a portion of income/loss and net assets not owned by the Company and was reported separately in the consolidated profit and loss statement and in the consolidated statement of financial position within equity, separately from the parent’s equity. Acquisition of the non-controlling interest was accounted for under the parent continuation method of accounting where the difference between the consideration paid and the carrying amount of the acquired share of net assets was recognized as goodwill. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Losses incurred by the Company were charged to the non-controlling interest until its book value was reduced to zero. Subsequent losses were charged to the parent company, except for cases when the non-controlling interest holders had a binding obligation to cover losses. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | At lost of control over a subsidiary the remaining investment was accounted for according to the proportional share in the net asset value as at the date of loss of control. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)   | Owned assets |
|-----------------|--------------|

| (b)   | Depreciation |
|-----------------|--------------|

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|                           |   | As of 31 December 2009 |        |   | As of 31 December 2008 |   |        | As of 31 December 2007 |   |
|--------------------------------|--------|------------------------|-------------|--------|------------------------|--------|-------------|------------------------|--------|
|                           |   |                   |        |   |                   |   |        |                   |   |
| ASSETS                         |   |                   |        |   |                   |   |        |                   |   |
| Intangible assets              |   | $                      | 12 901 |   |                   | $      | 13 851 |                   |   | $ | 9 390 |   |
| Plants, property and equipment |   |                   | 39          |   |                   |   | 65          |                   |   |   | 49 |   |
| Trading property               |   |                   | 22 613      |   |                   |   | 15 504      |                   |   |   | 8 880 |   |
| Cash and cash equivalents      |   |                   | 13          |   |                   |   | 33          |                   |   |   | 47 |   |
| Total Assets                   |   | $                      | 35 566 |   |                   | $      | 29 453      |                   |   | $ | 18 366 |   |

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| (a)   | assets and liabilities for each statement of financial position presented (i.e. including comparatives) are translated at the closing rate at the date of that statement; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | income and expenses for each income statement (i.e. including comparatives) are translated at exchange rates at the dates of the transactions; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | all resulting exchange differences are recognized as a separate component of equity (named in presented financial statements as Translational reserve). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                   |     Activity |    Country of incorporation |   | As of 31 December 2007Ownership or participation interest |   |   | As of 31 December 2008Ownership or participation interest |   |   | As of 31 December 2009Ownership or participation interest |   |
|------------------------|----------------------------------|--------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|-----------------------------------------------------------|--------|
| Jirmalia Holdings      | Investment activity              | Cyprus                                     |   |                                                      | 99     | %      |                                                      |   | 99     | %                                                         |   |   | 99 | % |
| «Riocom» LLC | Operations with trading property | Russia                                     |   |                                                      | 100    | %      |                                                      |   | 100    | %                                                         |   |   | 100 | % |
| «Icecom» LLC | Operations with trading property | Russia                                     |   |                                                      | 100    | %      |                                                      |   | 100    | %                                                         |   |   | 100 | % |
| «SOMO» LLC   | Operations with trading property | Russia                                     |   |                                                      | -      |   |                                                      |   | 100    | %                                                         |   |   | 100 | % |
| «SOMEX» LLC  | Operations with trading property | Russia                                     |   |                                                      | -      |   |                                                      |   | -      |                                                      |   |   | 100 | % |

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| October 8, 2008                                                                                        |   |   |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Investment for purchasing of the ratio of a third-party owner (or one third of the Authorized Capital) |   | $      | 1 200  |   |
| Loan to "SOMO" LLC forgiven at closing                                                                 |   |   | 201    |   |
| Liabilities of "SOMO" LLC assumed at closing                                                           |   |   | 244    |   |
| Total purchase cost to be allocated                                                                    |   | $      | 1 645  |   |
|                                                                                                   |   |   |   |   |
| Allocation of purchase cost:                                                                           |   |   |   |   |
| Fair value of "SOMO" LLC assets at closing                                                             |   | $      | 433    |   |
| Purchase cost in excess of fair value of assets acquired                                               |   |   | 1 212  |   |
| Total purchase cost                                                                                    |   | $      | 1 645  |   |

|              |   | 2009   |   |   | 2008   |   |
|-------------------|--------|--------|--------|--------|--------|--------|
|              |   |   |   |   |   |   |
| Revenue           |   | $      | -      |   |   | $      | - |   |
| Net income/(loss) |   | $      | -      |   |   | $      | - |   |

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|                               |   | For the year ended 31 December 2009 |   |   | For the year ended 31 December 2008 |   |   | For the year ended 31 December 2007 |   |
|------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                               |   |                                |   |   |                                |   |   |                                |   |
| Operating expenses                 |   |                                |   |   |                                |   |   |                                |   |
| Wages, salaries                    |   | $                                   | 251    |   |                                | $      | 283    |                                |   | $ | 82 |   |
| Social insurance                   |   |                                | 19     |   |                                |   | 58     |                                |   |   | 20 |   |
| Transportation                     |   |                                | 1      |   |                                |   | 1      |                                |   |   | - |   |
| Telephone                          |   |                                | 3      |   |                                |   | 9      |                                |   |   | 3 |   |
| Travel expenses                    |   |                                | 5      |   |                                |   | 92     |                                |   |   | 75 |   |
| Representation expenses            |   |                                | -      |   |                                |   | -      |                                |   |   | 17 |   |
| Repairs and renewals               |   |                                | 6      |   |                                |   | 15     |                                |   |   | 39 |   |
| Cleaning                           |   |                                | -      |   |                                |   | 33     |                                |   |   | - |   |
| Accountancy & Audit            |   |                                | 9      |   |                                |   | 110    |                                |   |   | - |   |
| Legal & notary fees            |   |                                | -      |   |                                |   | -      |                                |   |   | 23 |   |
| Consulting                         |   |                                | -      |   |                                |   | 8      |                                |   |   | 15 |   |
| Rent                               |   |                                | 137    |   |                                |   | 158    |                                |   |   | 61 |   |
| Light and heat                     |   |                                | 2      |   |                                |   | -      |                                |   |   |   |   |
| Bank charges                       |   |                                | 2      |   |                                |   | 16     |                                |   |   | 12 |   |
| Depreciation                       |   |                                | 23     |   |                                |   | 18     |                                |   |   | - |   |
| Directors' Remuneration            |   |                                | 51     |   |                                |   | 43     |                                |   |   | - |   |
| Materials (include fuel)           |   |                                | 2      |   |                                |   | 4      |                                |   |   | 8 |   |
| Taxes                              |   |                                | 40     |   |                                |   | 6      |                                |   |   | - |   |
| Commissions                        |   |                                | -      |   |                                |   | 98     |                                |   |   | 11 |   |
| Management expenses                |   |                                | 12     |   |                                |   | 335    |                                |   |   | 5 |   |
| Information service and IT service |   |                                | 6      |   |                                |   | 4      |                                |   |   | 8 |   |
| Miscellaneous                      |   |                                | 3      |   |                                |   | 35     |                                |   |   | 35 |   |
| Total operating expenses           |   | $                                   | 572    |   |                                | $      | 1326   |                                |   | $ | 414 |   |

----

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|                             |   | For the year ended 31 December 2009 |   |   | For the year ended 31 December 2008 |   |   | For the year ended 31 December 2007 |   |
|----------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                             |   |                                |   |   |                                |   |   |                                |   |
| Finance income                   |   |                                |   |   |                                |   |   |                                |   |
| Interest- income - third parties |   | $                                   | -      |   |                                | $      | -      |                                |   | $ | 17 |   |
| Total finance income             |   | $                                   | -      |   |                                | $      | -      |                                |   | $ | 17 |   |

|                                    |   | For the year ended 31 December 2009 |   |   | For the year ended 31 December 2008 |   |   | For the year ended 31 December 2007 |   |
|-----------------------------------------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------|--------|
|                                    |   |                                |   |   |                                |   |   |                                |   |
| Finance expenses                        |   |                                |   |   |                                |   |   |                                |   |
| Interest expenses – third parties |   | $                                   | 6      |   |                                | $      | 5      |                                |   | $ | 2 |   |
| Total finance expenses                  |   | $                                   | 6      |   |                                | $      | 5      |                                |   | $ | 2 |   |

|                                         |   | Office equipment, furniture, fittings |   |
|----------------------------------------------|--------|---------------------------------------|--------|
|                                         |   |                                  |   |
| Cost at 1 January 2007                       |   | $                                     | -      |   |
| Acquisition                                  |   |                                  | 49     |   |
| Cost at 31 December 2007                     |   |                                  | 49     |   |
|                                         |   |                                  |   |   |
| Accumulated depreciation at 1 January 2007   |   |                                  | -      |   |
| Depreciation expense                         |   |                                  | -      |   |
| Accumulated depreciation at 31 December 2007 |   |                                  | -      |   |
|                                         |   |                                  |   |   |
| Net cost at 1 January 2007                   |   |                                  | -      |   |
| Net cost at 31 December 2007                 |   | $                                     | 49     |   |

----

----

|                                         |   | Office equipment, furniture, fittings |   |
|----------------------------------------------|--------|---------------------------------------|--------|
|                                         |   |                                  |   |
| Cost at 1 January 2008                       |   | $                                     | 49     |   |
| Acquisition                                  |   |                                  | 34     |   |
| Cost at 31 December 2008                     |   |                                  | 83     |   |
|                                         |   |                                  |   |   |
| Accumulated depreciation at 1 January 2008   |   |                                  | -      |   |
| Depreciation expense                         |   |                                  | 18     |   |
| Accumulated depreciation at 31 December 2008 |   |                                  | 18     |   |
|                                         |   |                                  |   |   |
| Net cost at 1 January 2008                   |   |                                  | 49     |   |
| Net cost at 31 December 2008                 |   | $                                     | 65     |   |

|                                         |   | Office equipment, furniture, fittings |   |
|----------------------------------------------|--------|---------------------------------------|--------|
|                                         |   |                                  |   |
| Cost at 1 January 2009                       |   | $                                     | 83     |   |
| Acquisition                                  |   |                                  | -      |   |
| Cost at 31 December 2009                     |   |                                  | 83     |   |
|                                         |   |                                  |   |   |
| Accumulated depreciation at 1 January 2009   |   |                                  | 18     |   |
| Depreciation expense                         |   |                                  | 23     |   |
| Foreign exchange difference                  |   |                                  | 3      |   |
| Accumulated depreciation at 31 December 2009 |   |                                  | 44     |   |
|                                         |   |                                  |   |   |
| Net cost at 1 January 2009                   |   |                                  | 65     |   |
| Net cost at 31 December 2009                 |   | $                                     | 39     |   |

----

----

|                                         |   | Tenant rights and Construction permits |       |   | Goodwill |   |   | Software |   |   | Total  |   |
|----------------------------------------------|--------|----------------------------------------|------------|--------|----------|--------|--------|----------|--------|--------|--------|--------|
|                                         |   |                                   |       |   |     |   |   |     |   |   |   |   |
| Cost at 1 January 2007                       |   | $                                      | -          |   |     | $      | -      |     |   | $      | -      |   |   | $ | - |   |
| Acquisition                                  |   |                                   | -          |   |     |   | -      |     |   |   | 4      |   |   |   | 4 |   |
| Revaluation                                  |   |                                   | 9 386 |   |     |   | -      |     |   |   | -      |   |   |   | 9 386 |   |
| Cost at 31 December 2007                     |   |                                   | 9 386 |   |     |   | -      |     |   |   | 4      |   |   |   | 9 390 |   |
|                                         |   |                                   |       |   |     |   |   |     |   |   |   |   |   |   |   |   |
| Accumulated amortization at 1 January 2007   |   |                                   | -          |   |     |   | -      |     |   |   | -      |   |   |   | - |   |
| Accumulated amortization at 31 December 2007 |   |                                   | -          |   |     |   | -      |     |   |   | -      |   |   |   | - |   |
|                                         |   |                                   |       |   |     |   |   |     |   |   |   |   |   |   |   |   |
| Net cost at 1 January 2007                   |   |                                   | -          |   |     |   | -      |     |   |   | -      |   |   |   | - |   |
| Net cost at 31 December 2007                 |   | $                                      | 9386       |   |     | $      | -      |     |   | $      | 4      |   |   | $ | 9390 |   |

|                                         |   | Tenant rights and Construction permits |        |   | Goodwill |   |       | Software |   |   | Total  |   |
|----------------------------------------------|--------|----------------------------------------|-------------|--------|----------|--------|------------|----------|--------|--------|--------|--------|
|                                         |   |                                   |        |   |     |   |       |     |   |   |   |   |
| Cost at 1 January 2008                       |   | $                                      | 9 386       |   |     | $      | -          |     |   | $      | 4      |   |   | $ | 9390 |   |
| Acquisition                                  |   |                                   | -           |   |     |   | 1 212 |     |   |   | -      |   |   |   | 1 212 |   |
| Revaluation                                  |   |                                   | 4 427  |   |     |   | -          |     |   |   | -      |   |   |   | 4 427 |   |
| Foreign exchange difference                  |   |                                   | (1 174 | )      |     |   | -          |     |   |   | -      |   |   |   | (1 174 | ) |
| Cost at 31 December 2008                     |   |                                   | 12 639 |   |     |   | 1 212 |     |   |   | 4      |   |   |   | 13 855 |   |
|                                         |   |                                   |        |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Accumulated amortization at 1 January 2008   |   |                                   | -           |   |     |   | -          |     |   |   | -      |   |   |   | - |   |
| Amortization expense                         |   |                                   | -           |   |     |   | -          |     |   |   | 4      |   |   |   | 4 |   |
| Accumulated amortization at 31 December 2008 |   |                                   | -           |   |     |   | -          |     |   |   | 4      |   |   |   | 4 |   |
|                                         |   |                                   |        |   |     |   |       |     |   |   |   |   |   |   |   |   |
| Net cost at 1 January 2008                   |   |                                   | 9 386  |   |     |   | -          |     |   |   | 4      |   |   |   | 9 390 |   |
| Net cost at 31 December 2008                 |   | $                                      | 12639       |   |     | $      | 1212       |     |   | $      | -      |   |   | $ | 13851 |   |

|                                         |   | Tenant rights and Construction permits |   |   | Goodwill |   |   | Software |   |   | Total  |   |
|----------------------------------------------|--------|----------------------------------------|--------|--------|----------|--------|--------|----------|--------|--------|--------|--------|
|                                         |   |                                   |   |   |     |   |   |     |   |   |   |   |
| Cost at 1 January 2009                       |   | $                                      | 12639  |   |     | $      | 1212   |     |   | $      | 4      |   |   | $ | 13855 |   |
| Acquisition                                  |   |                                   | -      |   |     |   | -      |     |   |   | 3      |   |   |   | 3 |   |
| Revaluation                                  |   |                                   | (555   | )      |     |   | -      |     |   |   | -      |   |   |   | (555 | ) |
| Foreign exchange difference                  |   |                                   | (361   | )      |     |   | (35    | )        |   |   | -      |   |   |   | (396 | ) |
| Cost at 31 December 2009                     |   |                                   | 11 723 |   |     |   | 1 177  |     |   |   | 7      |   |   |   | 12 907 |   |
|                                         |   |                                   |   |   |     |   |   |     |   |   |   |   |   |   |   |   |
| Accumulated amortization at 1 January 2009   |   |                                   | -      |   |     |   | -      |     |   |   | 4      |   |   |   | 4 |   |
| Amortization expense                         |   |                                   | -      |   |     |   | -      |     |   |   | 2      |   |   |   | 2 |   |
| Foreign exchange difference                  |   |                                   | -      |   |     |   | -      |     |   |   | -      |   |   |   | - |   |
| Accumulated amortization at 31 December 2009 |   |                                   | -      |   |     |   | -      |     |   |   | 6      |   |   |   | 6 |   |
|                                         |   |                                   |   |   |     |   |   |     |   |   |   |   |   |   |   |   |
| Net cost at 1 January 2009                   |   |                                   | 12 639 |   |     |   | 1 212  |     |   |   | -      |   |   |   | 13 851 |   |
| Net cost at 31 December 2009                 |   | $                                      | 11 723 |   |     | $      | 1 177  |     |   | $      | 1      |   |   | $ | 12 901 |   |

----

----

|                         |   | As of 31 December 2009 |       |   | As of 31 December 2008 |   |       | As of 31 December 2007 |   |
|------------------------------|--------|------------------------|------------|--------|------------------------|--------|------------|------------------------|--------|
|                         |   |                   |       |   |                   |   |       |                   |   |
| Trading Property             |   |                   |       |   |                   |   |       |                   |   |
| Sochi “Kurortny” |   | $                      | 14 820     |   |                   | $      | 11094      |                   |   | $ | 8 844 |   |
| Gagarin “Orbita” |   |                   | 7 793 |   |                   |   | 4 410 |                   |   |   | 36 |   |
| Total                        |   | $                      | 22 613     |   |                   | $      | 15 504     |                   |   | $ | 8 880 |   |

----

----

|                                                |   |  Credit balance   |   |   |                            |   |   |                         |   |   |                       |   |
|-----------------------------------------------------|--------|------------------------|--------|--------|---------------------------------|--------|--------|------------------------------|--------|--------|----------------------------|--------|
|                                                |   | as of 31 December 2009 |   |   |    Interest rate |   |   |    Issue date |   |   |    Due date |   |
|                                                |   |                   |   |   | %                               |   |   |                         |   |   |                       |   |
| Short-term loans  – related parties |   |                   |   |   |                            |   |   |                         |   |   |                       |   |   |   |   |   |
| Nazar Lappa                                         |   | $                      | 570    |   |                            |   | 0      | %                            |   |   | 05.12.2009                 |   |   |   | 05.03.2010 |   |
| Total:                                              |   | $                      | 570    |   |                            |   |   |                         |   |   |                       |   |   |   |   |   |

|                                                |   |  Credit balance   |       |   |                            |   |   |                         |   |   |                       |   |
|-----------------------------------------------------|--------|------------------------|------------|--------|---------------------------------|--------|--------|------------------------------|--------|--------|----------------------------|--------|
|                                                |   | as of 31 December 2007 |       |   |    Interest rate |   |   |    Issue date |   |   |    Due date |   |
| Short-term loans  – related parties |   |                   |       |   |                            |   |   |                         |   |   |                       |   |   |   |   |   |
| Nazar Lappa                                         |   | $                      | 3 770      |   |                            |   | 0      | %                            |   |   | 05.12.2007                 |   |   |   | 05.01.2008 |   |
| Total:                                              |   | $                      | 3 770 |   |                            |   |   |                         |   |   |                       |   |   |   |   |   |

----

----

|                                        |   | as of 31 December 2009 |   |   | as of 31 December 2008 |   |   | as of 31 December 2007 |   |
|---------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|------------------------|--------|
|                                        |   |                   |   |   |                   |   |   |                   |   |
| Other receivables                           |   |                   |   |   |                   |   |   |                   |   |
| Trade receivables - third parties           |   | $                      | 2      |   |                   | $      | -      |                   |   | $ | - |   |
| Advances to suppliers – third parties |   |                   | 172    |   |                   |   | -      |                   |   |   | - |   |
| Other receivables – third parties     |   |                   | 34     |   |                   |   | 341    |                   |   |   | 43 |   |
| Total:                                      |   | $                      | 208    |   |                   | $      | 341    |                   |   | $ | 43 |   |

|                                  |   | as of December 31, 2009 |   |   | as of December 31, 2008 |   |   | as of December 31, 2007 |   |
|---------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                  |   |                    |   |   |                    |   |   |                    |   |
| Other non-current assets              |   |                    |   |   |                    |   |   |                    |   |
| Long-term prepayments - third parties |   | $                       | -      |   |                    | $      | -      |                    |   | $ | 343 |   |
| Other current assets                  |   |                    |   |   |                    |   |   |                    |   |   |   |   |
| Income tax recoverable                |   |                    | 3      |   |                    |   | -      |                    |   |   | - |   |
| VAT recoverable                       |   |                    | 65     |   |                    |   | 2      |                    |   |   | 31 |   |
| Total other assets                    |   | $                       | 68     |   |                    | $      | 2      |                    |   | $ | 374 |   |

|                            |   | as of December 31, 2009 |   |   | as of December 31, 2008 |   |   | as of December 31, 2007 |   |
|---------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                            |   |                    |   |   |                    |   |   |                    |   |
| Bank accounts in:               |   |                    |   |   |                    |   |   |                    |   |
| RUR                             |   | $                       | -      |   |                    | $      | -      |                    |   | $ | 4 |   |
| USD                             |   |                    | 13     |   |                    |   | 16     |                    |   |   | 32 |   |
| Cash:                           |   |                    |   |   |                    |   |   |                    |   |   |   |   |
| USD                             |   |                    | -      |   |                    |   | 17     |                    |   |   | 11 |   |
| Total cash and cash equivalents |   | $                       | 13     |   |                    | $      | 33     |                    |   | $ | 47 |   |

----

----

|                                                                                       |   | as of December 31, 2009 |   |   | as of December 31, 2008 |   |   | as of December 31, 2007 |   |
|--------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                                                                       |   |                    |   |   |                    |   |   |                    |   |
| Income tax expense - current                                                               |   | $                       | -      |   |                    | $      | (6     | )                       |   | $ | (3 | ) |
| Income tax expense - deferred                                                              |   |                    | 125    |   |                    |   | 195    |                    |   |   | 47 |   |
| Total income tax charge                                                                    |   |                    | 125    |   |                    |   | 189    |                    |   |   | 44 |   |
|                                                                                       |   |                    |   |   |                    |   |   |                    |   |   |   |   |
| Income (loss) before income tax                                                            |   |                    | (757   | )      |                    |   | (976   | )                       |   |   | 516 |   |
|                                                                                       |   |                    |   |   |                    |   |   |                    |   |   |   |   |
| Income tax rate                                                                            |   |                    | 20     | %      |                    |   | 24     | %                       |   |   | 24 | % |
| Theoretical tax                                                                            |   |                    | 151    |   |                    |   | 234    |                    |   |   | (124 | ) |
| Change in tax rate                                                                         |   |                    | -      |   |                    |   | (42    | )                       |   |   | - |   |
| Tax effect of operating income and expenses which are not assessable for taxation purposes |   |                    | (26    | )      |                    |   | (3     | )                       |   |   | 168 |   |
| Total income tax charge                                                                    |   | $                       | 125    |   |                    | $      | 189    |                    |   | $ | 44 |   |

----

----

|                                             |   |  As of 31 |   |   |   Foreignexchange |   |   | Effect from tax rate change |   |   | Differences recognition and reversals at 24% rate |   |   | Acquisitions of |   |   | As of 1 January |   |
|--------------------------------------------------|--------|----------------|--------|--------|------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------|--------|--------|-----------------|--------|
|                                             |   | December 2007  |   |   | differences            |   |   | P&L                     |   |   | Equity                                            |   |   | P&L         |   |   | Equity          |   |   | subsidiaries |   |   | 2007 |   |
| Tax effects of taxable temporary differences:    |   |           |   |   |                   |   |   |                        |   |   |                                              |   |   |            |   |   |            |   |   |   |   |   |   |   |
| Intangible assets                                |   | $              | (2253  | )      |                   | $      | (91    | )                           |   | $      | -                                                 |   |   | $               | -      |   |            | $      | - |   |   | $ | (2 162 | ) |   | $ | - |   |   | $ | - |   |
| Long-term borrowings                             |   |           | (4     | )      |                   |   | -      |                        |   |   | -                                                 |   |   |            | -      |   |            |   | (4 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             |   |           | (2 257 | )      |                   |   | (91    | )                           |   |   | -                                                 |   |   |            | -      |   |            |   | (4 | ) |   |   | (2 162 | ) |   |   | - |   |   |   | - |   |
| Tax effects of deductible temporary differences: |   |           |   |   |                   |   |   |                        |   |   |                                              |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trading Property                                 |   |           | 53     |   |                   |   | 2      |                        |   |   | -                                                 |   |   |            | -      |   |            |   | 51 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             |   |           | 53     |   |                   |   | 2      |                        |   |   | -                                                 |   |   |            | -      |   |            |   | 51 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             |   |           |   |   |                   |   |   |                        |   |   |                                              |   |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net deferred tax liabilities               |   | $              | (2204  | )      |                   | $      | (89    | )                           |   | $      | -                                                 |   |   | $               | -      |   |            | $      | 47 |   |   | $ | (2 162 | ) |   | $ | - |   |   | $ | - |   |

----

----

|                                             |   | As of 31 December |   |   | Foreignexchange |   |   | Effect from tax rate change |   |   | Differences recognition and reversals at 20% rate |   |   |  Acquisitions of |   |   |  As of 1 January |   |
|--------------------------------------------------|--------|-------------------|--------|--------|-----------------|--------|--------|-----------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                             |   | 2008              |   |   | differences     |   |   | P&L                     |   |   | Equity                                            |   |   | P&L               |   |   | Equity                |   |   | subsidiaries |   |   | 2008 |   |
| Tax effects of taxable temporary differences:    |   |              |   |   |            |   |   |                        |   |   |                                              |   |   |                  |   |   |                  |   |   |   |   |   |   |   |
| Intangible assets                                |   | $                 | (2 528 | )      |            | $      | 371    |                        |   | $      | -                                                 |   |   | $                     | 506    |   |                  | $      | - |   |   | $ | (1 152 | ) |   | $ | - |   |   | $ | (2253 | ) |
| Long-term borrowings                             |   |              | (2     | )      |            |   | 1      |                        |   |   | -                                                 |   |   |                  | -      |   |                  |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (4 | ) |
|                                             |   |              | (2 530 | )      |            |   | 372    |                        |   |   | -                                                 |   |   |                  | 506    |   |                  |   | 1 |   |   |   | (1 152 | ) |   |   | - |   |   |   | (2 257 | ) |
| Tax effects of deductible temporary differences: |   |              |   |   |            |   |   |                        |   |   |                                              |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trading Property                                 |   |              | 133    |   |            |   | (25    | )                           |   |   | (31                                               | )      |   |                  | -      |   |                  |   | 132 |   |   |   | - |   |   |   | 4 |   |   |   | 53 |   |
| Retained earnings                                |   |              | 79     |   |            |   | (14    | )                           |   |   | (18                                               | )      |   |                  | -      |   |                  |   | 111 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                             |   |              | 212    |   |            |   | (39    | )                           |   |   | (49                                               | )      |   |                  | -      |   |                  |   | 243 |   |   |   | - |   |   |   | 4 |   |   |   | 53 |   |
|                                             |   |              |   |   |            |   |   |                        |   |   |                                              |   |   |                  |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net deferred tax liabilities               |   | $                 | (2 318 | )      |            | $      | 332    |                        |   | $      | (49                                               | )      |   | $                     | 506    |   |                  | $      | 244 |   |   | $ | (1 152 | ) |   | $ | 4 |   |   | $ | (2204 | ) |

----

----

|                                             |   |                   |   |   |                       |   |   | Effect from tax rate change |   |   |   |   |   | Differences recognition and reversals at 20% rate |   |   |   |   |   |                         |   |   |                 |   |
|--------------------------------------------------|--------|------------------------|--------|--------|----------------------------|--------|--------|-----------------------------|--------|--------|--------|--------|--------|---------------------------------------------------|--------|--------|--------|--------|--------|------------------------------|--------|--------|----------------------|--------|
|                                             |   | As of 31 December 2009 |   |   | Foreignexchangedifferences |   |   | P&L                     |   |   | Equity |   |   | P&L                                           |   |   | Equity |   |   | Acquisitions of subsidiaries |   |   | As of 1 January 2009 |   |
| Tax effects of taxable temporary differences:    |   |                   |   |   |                       |   |   |                        |   |   |   |   |   |                                              |   |   |   |   |   |                         |   |   |                 |   |
| Intangible assets                                |   | $                      | (2 345 | )      |                       | $      | 72     |                        |   | $      | -      |   |   |                                              | -      |   |   | $      | -      |                         |   | $      | 111                  |   |   | $ | - |   |   | $ | (2 528 | ) |
| Long-term borrowings                             |   |                   | (1     | )      |                       |   | -      |                        |   |   | -      |   |   |                                              | -      |   |   |   | 1      |                         |   |   | -                    |   |   |   | - |   |   |   | (2 | ) |
| Trading Property                                 |   |                   | (193   | )      |                       |   | (9     | )                           |   |   | -      |   |   |                                              |   |   |   |   | (184   | )                            |   |   | -                    |   |   |   | - |   |   |   | - |   |
|                                             |   |                   | (2 539 | )      |                       |   | 63     |                        |   |   | -      |   |   |                                              | -      |   |   |   | (183   | )                            |   |   | 111                  |   |   |   | - |   |   |   | (2 530 | ) |
| Tax effects of deductible temporary differences: |   |                   |   |   |                       |   |   |                        |   |   |   |   |   |                                              |   |   |   |   |   |                         |   |   |                 |   |   |   |   |   |   |   |   |   |
| Trading Property                                 |   |                   | 268    |   |                       |   | 3      |                        |   |   | -      |   |   |                                              | -      |   |   |   | 132    |                         |   |   | -                    |   |   |   | - |   |   |   | 133 |   |
| Retained earnings                                |   |                   | 236    |   |                       |   | (19    | )                           |   |   | -      |   |   |                                              | -      |   |   |   | 176    |                         |   |   | -                    |   |   |   | - |   |   |   | 79 |   |
|                                             |   |                   | 504    |   |                       |   | (16    | )                           |   |   | -      |   |   |                                              | -      |   |   |   | 308    |                         |   |   | -                    |   |   |   | - |   |   |   | 212 |   |
|                                             |   |                   |   |   |                       |   |   |                        |   |   |   |   |   |                                              |   |   |   |   |   |                         |   |   |                 |   |   |   |   |   |   |   |   |   |
| Total net deferred tax liabilities               |   | $                      | (2 035 | )      |                       | $      | 47     |                        |   | $      | -      |   |   |                                              | -      |   |   | $      | 125    |                         |   | $      | 111                  |   |   | $ | - |   |   | $ | (2 318 | ) |

----

----

|                                         |   | as of December 31, 2009 |   |   | as of December 31, 2008 |   |   | as of December 31, 2007 |   |
|----------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                         |   |                    |   |   |                    |   |   |                    |   |
| Other payables                               |   |                    |   |   |                    |   |   |                    |   |
| Trade payables – third parties         |   | $                       | 47     |   |                    | $      | -      |                    |   | $ | 1 |   |
| Other current payables – third parties |   |                    | 672    |   |                    |   | 597    |                    |   |   | 18 |   |
| Accrued salaries and wages                   |   |                    | 100    |   |                    |   | -      |                    |   |   | 7 |   |
| Accrued interest - third parties             |   |                    | 5      |   |                    |   | -      |                    |   |   | - |   |
| Income tax payable                           |   |                    | -      |   |                    |   | -      |                    |   |   | 1 |   |
| VAT payable                                  |   |                    | 4      |   |                    |   | -      |                    |   |   | - |   |
| Social tax payable                           |   |                    | 15     |   |                    |   | -      |                    |   |   | 3 |   |
| Land tax payable                             |   |                    | 431    |   |                    |   | -      |                    |   |   | - |   |
| Payroll tax payable                          |   |                    | 16     |   |                    |   | -      |                    |   |   | 2 |   |
| Total other payables                         |   | $                       | 1 290  |   |                    | $      | 597    |                    |   | $ | 32 |   |

|                                       |   | Credit balance          |   |   |                            |   |   |                         |   |   |                       |   |
|--------------------------------------------|--------|-------------------------|--------|--------|---------------------------------|--------|--------|------------------------------|--------|--------|----------------------------|--------|
|                                       |   | as of December 31, 2007 |   |   |    Interest rate |   |   |    Issue date |   |   |    Due date |   |
|                                       |   |                    |   |   | %                               |   |   |                         |   |   |                       |   |
| Long-term borrowings                       |   |                    |   |   |                            |   |   |                         |   |   |                       |   |
| Loans and borrowings – third parties |   |                    |   |   |                            |   |   |                         |   |   |                       |   |
| "LaVieDerm-Paris" SRL                      |   | $                       | 64     |   |                            |   | 3      | %                            |   |   | 28.12.2007                 |   |   |   | 27.12.2010 |   |
| Total:                                     |   | $                       | 64     |   |                            |   |   |                         |   |   |                       |   |   |   |   |   |

----

----

|                                       |   | Credit balance          |   |   |                            |   |   |                         |   |   |                       |   |
|--------------------------------------------|--------|-------------------------|--------|--------|---------------------------------|--------|--------|------------------------------|--------|--------|----------------------------|--------|
|                                       |   | as of December 31, 2008 |   |   |    Interest rate |   |   |    Issue date |   |   |    Due date |   |
|                                       |   |                    |   |   | %                               |   |   |                         |   |   |                       |   |
| Long-term and borrowings                   |   |                    |   |   |                            |   |   |                         |   |   |                       |   |
| Loans and borrowings – third parties |   |                    |   |   |                            |   |   |                         |   |   |                       |   |
| "LaVieDerm-Paris" SRL                      |   | $                       | 75     |   |                            |   | 3      | %                            |   |   | 28.12.2007                 |   |   |   | 27.12.2010 |   |
| Total:                                     |   | $                       | 75     |   |                            |   |   |                         |   |   |                       |   |   |   |   |   |

|                                                               |   | Credit balance          |   |   |          |   |   |       |   |     |
|--------------------------------------------------------------------|--------|-------------------------|--------|--------|---------------|--------|--------|------------|--------|----------|
|                                                               |   | as of December 31, 2007 |   |   | Interest rate |   |   | Issue date |   | Due date |
|                                                               |   |                    |   |   | %             |   |   |       |   |     |
| Short-term  loans and borrowings – related parties |   |                    |   |   |          |   |   |       |   |     |   |   |   |
| Plavnik R.G.                                                       |   | $                       | 6      |   |          |   | 0      | %          |   |     | 12.09.2006 |   | on demand |
| Total:                                                             |   | $                       | 6      |   |          |   |   |       |   |     |   |   |   |

----

----

|                                                    |   | Credit balance          |   |   |                            |   |   |                         |   |                             |
|---------------------------------------------------------|--------|-------------------------|--------|--------|---------------------------------|--------|--------|------------------------------|--------|----------------------------------|
|                                                    |   | as of December 31, 2008 |   |   |    Interest rate |   |   |    Issue date |   |     Due date |
|                                                    |   |                    |   |   | %                               |   |   |                         |   |                             |
| Short-term loans and borrowings – related parties |   |                    |   |   |                            |   |   |                         |   |                             |   |   |   |
| Plavnik R.G.                                            |   | $                       | 68     |   |                            |   | 0      | %                            |   |                             | 12.09.2006 |   | on demand |
| Total:                                                  |   | $                       | 68     |   |                            |   |   |                         |   |                             |   |   |   |

|                                                               |   | Credit balance          |   |   |          |   |   |       |   |   |       |   |
|--------------------------------------------------------------------|--------|-------------------------|--------|--------|---------------|--------|--------|------------|--------|--------|------------|--------|
|                                                               |   | as of December 31, 2009 |   |   | Interest rate |   |   | Issue date |   |   | Due date   |   |
|                                                               |   |                    |   |   | %             |   |   |       |   |   |       |   |
| Short-term  loans and borrowings – related parties |   | $                       | 208    |   |          |   |   |       |   |   |       |   |   |
| KREP Corp                                                          |   |                    | 99     |   |          |   | 8      | %          |   |   | 21.01.2009 |   |   |   | 09.11.2010 |   |
| Plavnik R.G.                                                       |   |                    | 69     |   |          |   | 0      | %          |   |   | 12.09.2006 |   |   |   | 31.12.2010 |   |
| Zoriy E.L.                                                         |   |                    | 23     |   |          |   | 0      | %          |   |   | 30.03.2009 |   |   |   | 31.12.2010 |   |
| Plavnik R.G.                                                       |   |                    | 17     |   |          |   | 0      | %          |   |   | 30.09.2009 |   |   |   | 30.09.2010 |   |
| Short-term  loans and borrowings – third parties   |   | $                       | 269    |   |          |   |   |       |   |   |       |   |   |   |   |   |
| LLC “Anstroy”                                          |   |                    | 82     |   |          |   | 9,3    | %          |   |   | 28.12.2007 |   |   |   | 27.12.2010 |   |
| Lefteriadi K.T.                                                    |   |                    | 33     |   |          |   | 0      | %          |   |   | 14.06.2007 |   |   |   | 31.12.2010 |   |
| Vohontsev S.K.                                                     |   |                    | 32     |   |          |   | 0      | %          |   |   | 30.07.2009 |   |   |   | 30.07.2010 |   |
| Gromova S.A.                                                       |   |                    | 23     |   |          |   | 0      | %          |   |   | 01.07.2009 |   |   |   | 31.12.2010 |   |
| Ovseychuk A.V.                                                     |   |                    | 20     |   |          |   | 0      | %          |   |   | 18.11.2009 |   |   |   | 18.11.2010 |   |
| Sultanov A.F.                                                      |   |                    | 20     |   |          |   | 0      | %          |   |   | 18.11.2009 |   |   |   | 18.11.2010 |   |
| Ivanova T.M.                                                       |   |                    | 15     |   |          |   | 0      | %          |   |   | 11.09.2009 |   |   |   | 11.09.2010 |   |
| Sukhareva M.I.                                                     |   |                    | 15     |   |          |   | 0      | %          |   |   | 11.09.2009 |   |   |   | 11.09.2010 |   |
| other third parties                                                |   |                    | 29     |   |          |   |   |       |   |   |       |   |   |   |   |   |
| Total:                                                             |   | $                       | 477    |   |          |   |   |       |   |   |       |   |   |   |   |   |

----

----

|                                                |   | Ordinary shares for the year ended 31 December 2009 |                 |   | Ordinary shares for the year ended 31 December 2008 |   |                 | Ordinary shares for the year ended 31 December 2007 |   |
|-----------------------------------------------------|--------|-----------------------------------------------------|----------------------|--------|-----------------------------------------------------|--------|----------------------|-----------------------------------------------------|--------|
| Number of  shares authorized              |   |                                                | 55 000 000 |   |                                                |   | 55 000 000 |                                                |   |   | 55 000 000 |   |
| Number of shares issued and fully paid              |   |                                                | 10 794 811 |   |                                                |   | 9 467 968  |                                                |   |   | 6 554 770 |   |
| Number of shares issued but not fully paid          |   |                                                | -                    |   |                                                |   | -                    |                                                |   |   | - |   |
|                                                |   |                                                |                 |   |                                                |   |                 |                                                |   |   |   |   |
|                                                |   |                                                |                 |   |                                                |   |                 |                                                |   |   |   |   |
| Number of shares at the beginning of the year       |   |                                                | 9 467 968       |   |                                                |   | 6 554 770  |                                                |   |   | - |   |
| Issued shares                                       |   |                                                | 1 326 843       |   |                                                |   | 2 913 198  |                                                |   |   | 6 554 770 |   |
| Number of shares at the end of the year             |   |                                                | 10 794 811      |   |                                                |   | 9 467 968  |                                                |   |   | 6 554 770 |   |
|                                                |   |                                                |                 |   |                                                |   |                 |                                                |   |   |   |   |
| Weighted average number of shares during the year   |   |                                                | 10 131 390 |   |                                                |   | 8 011 369  |                                                |   |   | 5 244 066 |   |
|                                                |   |                                                |                 |   |                                                |   |                 |                                                |   |   |   |   |
| Par value of 1 share (in USD)                       |   | $                                                   | 3                    |   |                                                | $      | 3                    |                                                |   | $ | 3 |   |
| Total share capital at the end of the year (in USD) |   | $                                                   | 32384 433            |   |                                                | $      | 28403904             |                                                |   | $ | 19664310 |   |

----

----

|                                          |   | Number of common shares |                |   | Common Stock |   |        | Share Premium |   |   | Total Stockholder’s Equity |   |
|-----------------------------------------------|--------|-------------------------|---------------------|--------|--------------|--------|-------------|---------------|--------|--------|----------------------------------|--------|
|                                          |   |                    |                |   |         |   |        |          |   |   |                             |   |
| Balance at 01 January 2007                    |   |                    | -                   |   |         | $      | -           |          |   | $      | -                                |   |   | $ | - |   |
| Shared issued shares for cash at $3 per share |   |                    | 6 554 770 |   |         |   | 19 664 |          |   |   | (7 133                           | )      |   |   | 12 531 |   |
| Balance at 31 December 2007                   |   |                    | 6 554 770 |   |         | $      | 19 664 |          |   | $      | (7 133                           | )      |   | $ | 12 531 |   |
|                                          |   |                    |                |   |         |   |        |          |   |   |                             |   |   |   |   |   |
| Balance at 01 January 2008                    |   |                    | 6 554 770 |   |         | $      | 19 664 |          |   | $      | (7 133                           | )      |   | $ | 12 531 |   |
| Shared issued shares for cash at $3 per share |   |                    | 2 913 198 |   |         |   | 8 740  |          |   |   | (4 439                           | )      |   |   | 4 301 |   |
| Balance at 31 December 2008                   |   |                    | 9 467 968 |   |         | $      | 28 404 |          |   | $      | (11 572                          | )      |   | $ | 16 832 |   |
|                                          |   |                    |                |   |         |   |        |          |   |   |                             |   |   |   |   |   |
| Balance at 01 January 2009                    |   |                    | 9 467 968 |   |         | $      | 28 404 |          |   | $      | (11 572                          | )      |   | $ | 16 832 |   |
| Shared issued shares for cash at $3 per share |   |                    | 1 326 843      |   |         |   | 3 980  |          |   |   | 3 258                       |   |   |   | 7 238 |   |
| Balance at 31 December 2009                   |   |                    | 10 794 811     |   |         | $      | 32 384 |          |   | $      | (8 314                           | )      |   | $ | 24 070 |   |

----

----

| (a)   | Transactions as of December 31, 2007 |
|-----------------|--------------------------------------|

| (b)   | Transactions as of December 31, 2008 |
|-----------------|--------------------------------------|

| (c)  | Transactions as of December 31, 2009 |
|-----------|--------------------------------------|

----

----

| Counterparty                                    |   | Lease  |   |   | Lease term |   | Possibility of extension |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|--------------------------|
| Danom LLC                                       |   | $      | 52     |   |       |   | 31.12.2007               |   | Yes |
| Federal Treasury Department for Smolensk Region |   |   | 9      |   |       |   | 31.12.2007               |   | Yes |
| Total:                                          |   | $      | 61     |   |       |   |                     |   |   |

| Counterparty |   | Lease  |   |   | Lease term |   | Possibility of extension |
|--------------|--------|--------|--------|--------|------------|--------|--------------------------|
| Danom LLC    |   | $      | 156    |   |       |   | 31.12.2008               |   | Yes |
| Other        |   |   | 2      |   |       |   | 31.12.2008               |   | No |
| Total:       |   | $      | 158    |   |       |   |                     |   |   |

| Counterparty         |   | Lease  |   |   | Lease term |   | Possibility of extension |
|----------------------|--------|--------|--------|--------|------------|--------|--------------------------|
| Danom LLC            |   | $      | 84     |   |       |   | 31.12.2009               |   | Yes |
| Kasiss JSC           |   |   | 16     |   |       |   | 31.12.2009               |   | Yes |
| L.Z. Seferyan (I.E.) |   |   | 37     |   |       |   | 31.12.2009               |   | Yes |
| Total:               |   | $      | 137    |   |       |   |                     |   |   |

----

----

----

----

|                                                                   |   | IFRS figures                        |        |   |         |   |   | US GAAP figures                     |   |   | IFRS figures                             |   |   |         |       |   | US GAAP figures                          |   |        | IFRS figures                             |   |   |         |   |   | US GAAP figures                          |        |
|------------------------------------------------------------------------|--------|-------------------------------------|-------------|--------|--------------|--------|--------|-------------------------------------|--------|--------|------------------------------------------|--------|--------|--------------|------------|--------|------------------------------------------|--------|-------------|------------------------------------------|--------|--------|--------------|--------|--------|------------------------------------------|-------------|
|                                                                   |   | for the year ended 31 December 2009 |        |   | Adjust-ments |   |   | for the year ended 31 December 2009 |   |   | for the year ended 31 December 2008 |   |   | Adjust-ments |       |   | for the year ended 31 December 2008 |   |        | for the year ended 31 December 2007 |   |   | Adjust-ments |   |   | for the year ended 31 December 2007 |        |
|                                                                   |   |                                |        |   |         |   |   |                                |   |   |                                     |   |   |         |       |   |                                     |   |        |                                     |   |   |         |   |   |                                     |        |
| Income (Loss)                                                          |   | $                                   | (632        | )      |         | $      | -      |                                |   | $      | (632                                     | )      |   | $            | (787       | )      |                                     | $      | -           |                                     |   | $      | (787         | )      |   | $                                        | 560         |   |   | $ | - |   |   | $ | 560 |   |
| Other comprehensive income (loss)                                      |   |                                |        |   |         |   |   |                                |   |   |                                     |   |   |         |       |   |                                     |   |        |                                     |   |   |         |   |   |                                     |        |   |   |   |   |   |   |   |   |   |
| Foreign exchange difference                                            |   |                                | (290        | )      |         |   | (290   | )                                   |   |   | -                                        |   |   |         | (1 175     | )      |                                     |   | 1 174  |                                     |   |   | (1           | )      |   |                                     | 23          |   |   |   |   |   |   |   | 23 |   |
| Revaluation of tenant rights                                           |   |                                | 555         |   |         |   | 555    |                                |   |   | -                                        |   |   |         | 4 427      |   |                                     |   | (4 427 | )                                        |   |   | -            |   |   |                                     | 9 386  |   |   |   | (9 386 | ) |   |   | - |   |
| Income tax relating to components of other comprehensive (loss)/income |   |                                | 111         |   |         |   | 111    |                                |   |   | -                                        |   |   |         | (275       | )      |                                     |   | 275         |                                     |   |   | -            |   |   |                                     | (2 253 | ) |   |   | 2 253 |   |   |   | - |   |
| Other comprehensive income (loss), net of tax                          |   |                                | (734        | )      |         |   | (734   | )                                   |   |   | -                                        |   |   |         | 2 977 |   |                                     |   | (2 978 | )                                        |   |   | (1           | )      |   |                                     | 7 156  |   |   |   | (7 133 | ) |   |   | 23 |   |
| Total comprehensive income (loss)                                      |   | $                                   | (1 366 | )      |         | $      | (734   | )1                                  |   | $      | (632                                     | )      |   | $            | 2 190 |   |                                     | $      | (2 978 | )                                        |   | $      | (788         | )      |   | $                                        | 7 716  |   |   | $ | (7 133 | ) |   | $ | 583 |   |
| Attributable to:                                                       |   |                                |        |   |         |   |   |                                |   |   |                                     |   |   |         |       |   |                                     |   |        |                                     |   |   |         |   |   |                                     |        |   |   |   |   |   |   |   |   |   |
| shareholders of Company                                                |   | $                                   | (1 366 | )      |         | $      | (734   | )                                   |   | $      | (632                                     | )      |   | $            | 2 190 |   |                                     | $      | (2 978 | )                                        |   | $      | (788         | )      |   | $                                        | 7 716  |   |   | $ | (7 133 | ) |   | $ | 583 |   |
| non-controlling interests                                              |   | $                                   | -           |   |         |   |   |                                |   | $      | -                                        |   |   | $            | -          |   |                                     |   |        |                                     |   | $      | -            |   |   | $                                        | -           |   |   |   |   |   |   | $ | - |   |

----

  

----

----

|                                                 |   | IFRS figures             |        |   |         |   |        | US GAAP figures        |                        |        | IFRS figures           |         |   |         |              |   | US GAAP figures        |   |            | IFRS figures           |   |         |         |   |   | US GAAP figures        |              |
|------------------------------------------------------|--------|--------------------------|-------------|--------|--------------|--------|-------------|------------------------|-----------------------------|-------------|------------------------|--------------|--------|--------------|-------------------|--------|------------------------|--------|-----------------|------------------------|--------|--------------|--------------|--------|--------|------------------------|-------------------|
|                                                 |   | as of 31 December 2009   |        |   | Adjust-ments |   |        | as of 31 December 2009 |                        |        | as of 31 December 2008 |         |   | Adjust-ments |              |   | as of 31 December 2008 |   |            | as of 31 December 2007 |   |         | Adjust-ments |   |   | as of 31 December 2007 |              |
|                                                 |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |
| ASSETS                                               |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |
| Current assets                                       |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |
| Cash and cash equivalents                            |   | $                        | 13          |   |         |   |        |                   | $                           | 13          |                   |         | $      | 33           |              |   |                   |   |            | $                      | 33     |         |         | $      | 47     |                   |              |   |   |   | $ | 47 |   |
| Short-term loans                                     |   |                     | 570         |   |         |   |        |                   |                        | 570         |                   |         |   | -            |              |   |                   |   |            |                   | -      |         |         |   | 3 770  |                   |              |   |   |   |   | 3 770 |   |
| Other receivables                                    |   |                     | 208         |   |         |   |        |                   |                        | 208         |                   |         |   | 341          |              |   |                   |   |            |                   | 341    |         |         |   | 43     |                   |              |   |   |   |   | 43 |   |
| Other current assets                                 |   |                     | 68          |   |         |   |        |                   |                        | 68          |                   |         |   | 2            |              |   |                   |   |            |                   | 2      |         |         |   | 31     |                   |              |   |   |   |   | 31 |   |
| Total current assets                                 |   |                     | 859         |   |         |   |        |                   |                        | 859         |                   |         |   | 376          |              |   |                   |   |            |                   | 376    |         |         |   | 3 891  |                   |              |   |   |   |   | 3 891 |   |
| Non-current assets                                   |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |
| Trading property                                     |   |                     | 22 613      |   |         |   |        |                   |                        | 22 613 |                   |         |   | 15 504       |              |   |                   |   |            |                   | 15 504 |         |         |   | 8 880  |                   |              |   |   |   |   | 8 880 |   |
| Property, plant and equipment, net                   |   |                     | 39          |   |         |   |        |                   |                        | 39          |                   |         |   | 65           |              |   |                   |   |            |                   | 65     |         |         |   | 49     |                   |              |   |   |   |   | 49 |   |
| Intangible assets                                    |   |                     | 12 901      |   |         |   | 11 723 | 2                      |                        |        | 1 178             |         |   |         | 13 851            |   |                   |   | (12 639    | )                      |   |         | 1 212        |   |   |                   | 9 390             |   |   |   | (9 386 | ) |   |   | 4 |   |
| Deferred tax assets                                  |   |                     | 504         |   |         |   |        |                   |                        |        | 504                    |         |   |         | 212               |   |                   |   |            |                   |   |         | 212          |   |   |                   | 53                |   |   |   |   |   |   |   | 53 |   |
| Other non-current assets                             |   |                     | -           |   |         |   |        |                   |                        |        | -                      |         |   |         | -                 |   |                   |   |            |                   |   |         | -            |   |   |                   | 343               |   |   |   |   |   |   |   | 343 |   |
| Total non-current assets                             |   |                     | 36 057      |   |         |   |        |                   |                        |        | 24 334            |         |   |         | 29 632            |   |                   |   |            |                   |   |         | 16 993       |   |   |                   | 18 715            |   |   |   |   |   |   |   | 9 329 |   |
| TOTAL ASSETS                                         |   | $                        | 36 916 |   |         |   |        |                   |                        | $           | 25 193            |         |   | $            |  30 008 |   |                   |   |            |                   |   | $            |  17 369 |   |   | $                      |  22 606 |   |   |   |   |   |   | $ | 13 220 |   |
|                                                 |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
|                                                 |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
|                                                 |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
|                                                 |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
|                                                 |   |   IFRS figures |        |   |         |   |        |                   |   US GAAP figures |        |                   | IFRS figures |   |         |              |   |                   |   | US GAAP figures |                   |   | IFRS figures |         |   |   |                   |              |   | US GAAP figures |   |
|                                                 |   | as of 31 December 2009   |        |   | Adjust-ments |   |        | as of 31 December 2009 |                        |        | as of 31 December 2008 |         |   | Adjust-ments |              |   | as of 31 December 2008 |   |            | as of 31 December 2007 |   |         | Adjust-ments |   |   | as of 31 December 2007 |              |
|                                                 |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
| LIABILITIES                                          |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
| Current liabilities                                  |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
| Other payables                                       |   | $                        | 1 290       |   |         |   |        |                   |                        | $           | 1 290                  |         |   | $            | 597               |   |                   |   |            |                   |   | $            | 597          |   |   | $                      | 32                |   |   |   |   |   |   | $ | 32 |   |
| Short-term borrowings                                |   |                     | 477         |   |         |   |        |                   |                        |        | 477                    |         |   |         | 68                |   |                   |   |            |                   |   |         | 68           |   |   |                   | 6                 |   |   |   |   |   |   |   | 6 |   |
| Total current liabilities                            |   |                     | 1 767       |   |         |   |        |                   |                        |        | 1 767                  |         |   |         | 665               |   |                   |   |            |                   |   |         | 665          |   |   |                   | 38                |   |   |   |   |   |   |   | 38 |   |
| Long-term liabilities                                |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
| Long-term borrowings                                 |   |                     | -           |   |         |   |        |                   |                        |        | -                      |         |   |         | 75                |   |                   |   |            |                   |   |         | 75           |   |   |                   | 64                |   |   |   |   |   |   |   | 64 |   |
| Deferred tax liabilities                             |   |                     | 2 539       |   |         |   | (2 345 | )3                     |                        |        | 194                    |         |   |         | 2 530             |   |                   |   | (2 528          | )                      |   |         | 2            |   |   |                   | 2 257             |   |   |   | (2 253 | ) |   |   | 4 |   |
| Total long-term liabilities                          |   |                     | 2 539       |   |         |   |        |                   |                        |        | 194                    |         |   |         | 2 605             |   |                   |   |            |                   |   |         | 77           |   |   |                   | 2 321             |   |   |   |   |   |   |   | 68 |   |
| EQUITY                                               |   |                     |        |   |         |   |        |                   |                        |        |                   |         |   |         |              |   |                   |   |            |                   |   |         |         |   |   |                   |              |   |   |   |   |   |   |   |   |   |
| Share capital                                        |   |                     | 32 384      |   |         |   |        |                   |                        |        | 32 384            |         |   |         | 28 404       |   |                   |   |            |                   |   |         | 28 404  |   |   |                   | 19 664       |   |   |   |   |   |   |   | 19 664 |   |
| Share premium                                        |   |                     | (8 314 | )      |         |   |        |                   |                        |        | (8 314            | )            |   |         | (11 572           | )      |                   |   |            |                   |   |         | (11 572 | )      |   |                   | (7 133            | ) |   |   |   |   |   |   | (7 133 | ) |
| Revaluation reserve                                  |   |                     | 9 378       |   |         |   | 9 378       | 4                      |                        |        | -                      |         |   |         | 10 111            |   |                   |   | (10 111         | )                      |   |         | -            |   |   |                   | 7 133             |   |   |   | (7 133 | ) |   |   | - |   |
| Translational reserve                                |   |                     | 21          |   |         |   |        |                   |                        |        | 21                     |         |   |         | 22                |   |                   |   |            |                   |   |         | 22           |   |   |                   | 23                |   |   |   |   |   |   |   | 23 |   |
| Retained earnings                                    |   |                     | (859        | )      |         |   |        |                   |                        |        | (859                   | )            |   |         | (227              | )      |                   |   |            |                   |   |         | (227         | )      |   |                   | 560               |   |   |   |   |   |   |   | 560 |   |
| Total equity attributable to shareholders of Company |   |                     | 32 610      |   |         |   |        |                   |                        |        | 23 232            |         |   |         | 26 738            |   |                   |   |            |                   |   |         | 16 627  |   |   |                   | 20 247            |   |   |   |   |   |   |   | 13 114 |   |
| Non-controlling interests                            |   |                     | -           |   |         |   |        |                   |                        |        | -                      |         |   |         | -                 |   |                   |   |            |                   |   |         | -            |   |   |                   | -                 |   |   |   |   |   |   |   | - |   |
| Total equity                                         |   |                     | 32 610      |   |         |   |        |                   |                        |        | 23 232            |         |   |         | 26 738            |   |                   |   |            |                   |   |         | 16 627  |   |   |                   | 20 247            |   |   |   |   |   |   |   | 13 114 |   |
| TOTAL LIABILITIES AND EQUITY                         |   | $                        | 36 916 |   |         |   |        |                   |                        | $           | 25 193            |         |   | $            | 30 008       |   |                   |   |            |                   |   | $            | 17 369  |   |   | $                      | 22 606       |   |   |   |   |   |   | $ | 13 220 |   |

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