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KORSTON GROUP Announces FY2007 Earnings Results

Earnings stronger than in previous fiscal year The KORSTON Group has announced a net income of $29.6 million, for the FY 2007, compared to a net income of $1.4 million, for the FY 2006. Sales were $137.2 million, an increase from the $67.0 million reported for the previous fiscal year.

The KORSTON Group, a company specializing in hotel development and management as well as retail and entertainment business, has reported an EBITDA* of $46.8 million, a 254% improvement compared to the previous fiscal year. Total assets grew from $149 million up to $299 million for the same period. “The KORSTON Group continues to improve its services," said Mr. Anatoly Kuznetsov, Chief Executive Officer of the KORSTON Group.

The Management of the KORSTON Group anticipates that next year’s earnings will be closer to targeted growth levels of 8% to 10% in Hotel, Retail and Entertainment Business. The KORSTON Group continues to expect EBITDA for 2008 of $48 million to $50 million.

The Korston Group is a dynamic management company with a long history on the Russian market. The company’s strong international management team has contributed a lot to establishing Korston as a trusted name in hospitality, conference, trade, lease and entertainment services.
The Korston Group of Companies brings together several enterprises connected through close partnership and property relations, and also bound by common strategic tasks.
The Korston Group of Companies successfully manages hotel, trade and entertainment complexes, both operating and projected, in Russia’s regions, including the Korston Hotel & Casino Moscow and the Korston Hotel & Mall Kazan.
*Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). Based on 2007 IFRS Audited numbers. Please note that in all instances in this press release, EBITDA refers to EBITDA from continuing operations before unusual items.