Acquisition of VUB

Aurora Russia Limited
21 April 2008


                                    
21 April 2008


       Aurora Russia Limited's wholly owned subsidiary Flexinvest Limited
                      to purchase Volzhski Universalny Bank

Aurora Russia Limited ('Aurora Russia'), the AIM-quoted investment vehicle
established to make equity or equity-related investments in small and mid-sized
private companies in Russia, announces the purchase of 100% of Volzhski
Universalny Bank ('VUB') through its wholly owned Cypriot holding company,
Flexinvest Limited ('Flexinvest'). VUB is currently focused on the retail
banking market and is based in Samara, Russia.  As at 31 December, 2007, VUB had
RUR 263 million in assets (approximately £5.66 million) and posted a profit of
RUR 19 million (approximately £0.41 million) for 2007.


The total investment of £6.36 million in Flexinvest will be used to purchase VUB
for £4.52 million (RUR 210 million) with the balance of £1.87 million (RUR
87million) being invested into the bank to cover post-acquisition infrastructure
costs and fund ongoing operations. The deal has been approved by the Central
Bank of Russia. VUB will provide Aurora Russia with a retail banking platform
that will focus primarily on retail mortgages, providing synergies with
Kreditmart, the loan supermarket owned by Aurora Russia.


The acquisition of the banking platform will enable Aurora Russia to increase
its presence in Russia's growing retail financial services market by
distributing VUB's retail products through Kreditmart, Aurora Russia's mortgage
and consumer products financial services platform. Kreditmart will offer VUB
mortgages, deposits, and other retail products through its distribution network
of 10 loan shops in Russia.


James Cook, Director of Aurora Russia Limited, commented:

'Given the Russian retail finance market dynamics and growth projections,
acquiring a banking platform is a natural investment decision to make. We are
going to seek to build synergies with Kreditmart as we believe that the
acquisition will benefit Kreditmart's strategy to expand its cross-sell
opportunities in insurance and wealth management. We will also expand the
product range of VUB Bank to focus on mortgages and equity release products.
This acquisition comes at a time when the mortgage market is set to double in
size this year.'


Sir Trevor Chinn, Chairman of Aurora Russia Limited, commented:

'This is the 5th investment that Aurora Russia has made bringing the total
amount invested to over £63 million. VUB will provide Kreditmart with a
competitive advantage in Russia's growing mortgage market and further enhance
Aurora Russia's strong foothold in the Russian banking and consumer finance
sector.'


Strong growth in the Russian Banking sector

The Russian banking sector has demonstrated strong growth for seven straight
years. From 1999 to 2006, the market has seen CAGR of 123% for the retail sector
(according to the Central Bank of Russia statistics). However, there still
remains considerable potential. The continuing strong growth of the Russian
economy and a stable political situation should provide a favorable foundation
for further growth. The low penetration of financial services is already seeing
exceptionally high growth rates and attractive profitability. As banking reforms
gradually take place and take effect, the significance of the sector within the
economy is growing and there is a rising and strong demand for banking products
and credits. The Russian retail banking market has been one of the
fastest-growing sectors in emerging markets.


Enquiries:

Aurora Russia Limited
James Cook, Moscow     [phone]
John McRoberts         [phone]


Investec
Paul Gray              [phone]
Patrick Robb           [phone]


Financial Dynamics
Ed Gasgoine-Pees       [phone]
Felicity Murdoch       [phone]


Note to editors:

Aurora Russia Limited, a London Stock Exchange listed company (LSE AIM: AURR)
was established to make equity or equity-related investments in small and
mid-sized private companies in Russia. Including its investment in VUB, Aurora
Russia has invested a total of £63 million of the £75 million raised in March
2006. This includes an equity investment of £5.68 million (39.1% stake) in OSG
Records Management Group, one of the largest records management companies in
Russia, Kazakhstan and Ukraine, a £22.5 million investment to launch Kreditmart,
a finance company distributing mortgages, equity release loans and other
consumer finance products, a £10.3 million (26.0% stake) investment in UNIStream
Bank, a leading Russian international money transfer company, and a £16.6 (24.3%
stake) investment in SuperStroy, one of the leading DIY retailers in Russia.

For more information please visit www.aurorarussia.com


Kreditmart is the first Russian loan supermarket, founded by Aurora Russia
Limited in September 2006 with an investment of £22.5 million. The 'one stop
shopping' approach and diversified distribution allows the company to clearly
stand out against competition; the experienced team with a track record of
success in similar projects makes it well-positioned for growth. Kreditmart has
10 sales branches across Russia in Moscow, St. Petersburg, Omsk, Novosibirsk,
Tyumen, Kazan, Rostov, and Yekaterinburg.

For more information please visit www.kreditmart.ru


VUB Bank was founded in 1994. It is currently focused on the retail banking
segment, offering small business lending, settlements and cash services, current
and deposit accounts, and consumer loans. The bank holds a complete set of
banking licenses and has been a member of Russia's Deposit Insurance System
(DIS) since 23 December 2004. The bank has one branch in Samara, Russia and 35
employees.


                      This information is provided by RNS
            The company news service from the London Stock Exchange