Press releases – 2007

Maiden Preliminary Results for the year ended 31 December 2006

29 Jun 2007

Chagala, the specialist Kazakh real estate developer and operator, is pleased to announce its maiden preliminary results for the year ended 31 December 2006.

These results are in line with management expectations and have been achieved in a year that has seen a shift in management attention from the main business of developing and running its portfolio to the significant investment of time required to achieve a successful IPO achieved at the start of the year. It has also been a year where demand from its main oil and gas clients working on the Kashagan field in the Caspian has been disrupted through, now resolved, technical difficulties.

Financial Highlights:

• Total revenues increased 18.2% to $18.7 million (2005: $15.8 million)
  • Room & rent revenue increased 19.7% to $14.5m (2005: $12.1m)
  • Food & beverage revenue increased 13.2% to $4.2m (2005: $3.7m)
• Cost of room & revenue increased 62.1% to $2.4m (2005: $1.5m)
• Increase in food & beverage costs of 36.3% to $2.1m (2005: $1.5m)
• Net profit before income tax decreased to $2.4m from $3.9m in 2005
• Net profit after tax decreased to 1.4m from 2.7m in 2005

Operational Highlights:

• Completed 68 serviced apartments in Atyrau together with completing certain technical buildings
• Acquired a housing compound in Aktau, comprising 145 partly completed apartments
• Bought remaining share of the Chagala Hotel in Bautino
• Bought land in Bautino to allow development of a planned residential and commercial park
• The joint venture entity, Chagala Zere Malls (CZM), acquired over three hectares of land in Ust-Kamenogorsk on which to develop the first of its programme of shopping centre developments, due for completion in the first half of 2009

Tim Abson, Chief Executive of Chagala, said:

"2006 has been an important year in the development of Chagala in which it has been necessary to put in place the necessary management and systems necessary for the expansion of the Group as a public company. This investment in our future puts us in an excellent position to cater for the increased demands expected from companies working on the Kashagan oil and gas field and also the emerging middle-class in the country."

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For further information:

The full press release in PDF format