Press releases – 2009

Chagala Group Limited announces that it has acquired its partner's 49.9% share in the mall venture Chagala Zere Malls

20 Mar 2009

Chief Executive of Chagala Group Limited, Tim Abson stated:

"Our partner, Zere Limited a real estate developer in the provincial cities of Kazakhstan, has been affected by the economic down-turn and is unable to continue supporting the venture. To secure the cash that was left in the company along with plans and designs for the 2 proposed centres in Ust-Kamenogorsk and Atyrau, we acquired Zere`s shares through a combination of cash and selling the land in Ust- Kamenogorsk to Zere Limited at a discounted value. This transaction has been completed at a net cash cost of USD 300, 000."

Chagala's management are currently considering how to develop Chagala Zere Malls, depending on macroeconomic conditions in the region going forward. Further announcements will be made in due course.

-ENDS-

For more information:

Notes to Editors

• Chagala's shares, in the form of global depositary receipts, started trading on the main market of the London Stock Exchange plc on the 27th of February 2007
• Chagala, formed in 1994, is the leading real estate developer in West Kazakhstan exploiting real estate development opportunities related to the emerging offshore oil and gas industry in the region
• The first facility was opened in 1995 in the city of Atyrau on the Caspian Sea and, to date, Atyrau has been the prime area of activity
• The Company is expanding in centers of oil and gas operations in West Kazakhstan namely: Atyrau, the administrative centre for Kazakhstan oil and gas industry; Bautino, the supply base for the off-shore oil industry; Aktau, a major Kazakh sea port with oil-loading facilities; and Uralsk, the regional center connected with the Karachaganak gas field, one of the biggest gas condensate fields in the world
• The diversified property portfolio includes: a chain of three star hotels catering to businessmen working in the rapidly expanding energy sector, fully-serviced, high quality apartments, a range of stand alone food and beverage outlets, office buildings complying with international standards and a sizeable portfolio of land in strategic locations for future development
• Chagala has a high name recognition in the region as a quality brand and has a record of achieving consistently high occupancy rates from its property portfolio
• The Group has ownership of a sizeable, diverse and well-located land bank acquired at competitive prices with excellent development potential