First Investment

Aurora Russia Limited
25 July 2006


25 July 2006


Aurora Russia Limited acquires stake in OSG Records Management group of
companies

Deal marks first investment in Russia following IPO

Aurora Russia Limited (the 'Company' or '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 that it has invested
$9.4m (£5.1m) for a 40.31% stake in Whitebrooks Investments Limited
('Whitebrooks'), the holding company of the OSG Records Management group of
companies ('OSG RM Group'). OSG RM Group is the market leader in records
management in Russia, Ukraine, and Kazakhstan. Aurora Russia's stake is subject
to an adjustment mechanism based on the OSG RM Group's 2006 revenues.

The Company and OSG RM Group have agreed that an 8% employee stock option
programme will be implemented. Therefore Aurora Russia's interest in Whitebrooks
on a fully diluted basis will be 37.1%. In addition, Aurora Russia will provide
a short-term facility of $5.0m to assist in funding the general corporate and
working capital needs of the OSG RM Group. The facility will carry an interest
rate of 12% p.a. and provide Aurora Russia with an option to convert any
outstanding amounts into equity on the basis of a pre-determined formula, should
the OSG RM Group fail to repay them within 12 months of drawdown.

This is the first investment by Aurora Russia since its admission to the AIM
market in March 2006. The Company is actively pursuing further investment
opportunities in the business and financial services segments in Russia.

About OSG RM Group

OSG RM Group is the regional leader in records management and provides
cost-effective total records management, document storage, data security and
confidential data destruction solutions. It is the largest operator in Russia,
Ukraine and Kazakhstan, with a presence in Poland, Bulgaria, China and Turkey.
The directors of Aurora Russia believe that OSG RM Group, which entered the
Russian market in 1998, currently controls an estimated 70%+ of the outsourced
records management market. OSG RM Group has built up nationwide coverage in
Russia with a customer base diversified across industries and dominated by
global blue-chip companies. OSG RM Group operates 17 data facilities in total
with approximately 180 employees and over 1,000 clients.

OSG RM Group has demonstrated significant growth since its formation in 1998.
Revenues grew at a compound annual growth rate of 58% from 2000 through to 2005.
In the year ended 31 December 2005, OSG RM Group achieved a total revenue of
$5.0m, an increase of 53% on the previous year, and EBITDA of $1.2m. Its
revenues for 2006 are estimated to increase to $7.6m.

The directors of Aurora Russia believe that OSG RM Group is well positioned to
capitalise on the region's growth in banking, professional services and
telecommunications with the potential for further geographical expansion and a
more extensive product offering including more advanced 'value-added' services
such as electronic records management. As the Russian economy expands and
matures, the demand for ancillary business services, such as records management,
is expected to grow substantially.

OSG RM Group's senior management team has extensive experience in the sector. It
comprises Tim Slesinger (Chief Executive Officer), who founded OSG RM Group in
Russia in 1998, Simon Waldron (Chief Financial Officer), Krzysztof Bobrowski
(Chief Operating Officer), and Darien Ellul (Director of International
Development).

As part of Aurora Russia's investment, James Cook will join Whitebrooks' Board
of Directors.

Investment details

The investment of $9.4m (£5.1m) comprises the acquisition of $6.9m of existing
Whitebrooks' shares and a share subscription of $2.5m for new Whitebrooks'
shares. In addition, Aurora Russia will provide OSG RM Group with a facility of
$5.0m to fund general corporate and working capital needs. This facility is
unsecured and shall be available for a period of 24 months from completion of
the Company's investment in the OSG RM Group. Amounts drawn under the facility
will be repayable within 12 months and will be liable to interest at an interest
rate of 12% per annum. In the event that any amount due under the facility is
not repaid on the date on which such an amount becomes due and payable, then
Aurora Russia shall be entitled to convert that amount into shares to be issued
by Whitebrooks, according to a pre-determined conversion formula based upon a
multiple of three times historical revenues.

Commenting on the acquisition, James Cook and John McRoberts, two Directors of
Aurora Russia Limited, said:

'OSG RM Group is an established market leader with excellent positioning in the
fast growing Russian records management market and the potential for further
expansion into neighbouring high growth markets. It is an excellent fit with our
investment criteria demonstrating exciting growth potential. We believe that OSG
RM Group is uniquely positioned to capitalise on the region's growth in banking,
professional services and retail. The additional growth capital we will be
providing will enable OSG RM Group to strengthen its presence in these markets
and secure further market share.

Tim Slesinger, Chief Executive Officer OSG RM Group, said:

'We are absolutely delighted that Aurora Russia has chosen to invest in our
business and consider this to be a very suitable partnership. We have a huge
amount of respect for the management of Aurora Russia and look forward to
working alongside them. This investment will enable OSG RM Group to expand our
total records management product offerings and drive growth.'

Enquiries

Aurora Russia Limited
James Cook, Moscow [phone]
John McRoberts, London [phone]
Financial Dynamics [phone]
Giles Sanderson
Ed Gascoigne-Pees
Svetlana Fedyunin


Notes to editors:

Aurora Russia

Aurora Russia floated on the Alternative Investment Market of the London Stock
Exchange on 24 March 2006. The Company has been established to make equity or
equity related investments in small and mid-sized private Russian companies
focused on the financial, business and consumer services sectors where the
Directors of Aurora Russia believe there is potential for growth together with
viable exit opportunities within two to four years of making such investments.
The Company intends to provide its investee companies with the necessary capital
to continue to expand and develop. Aurora Russia shall provide hands-on
operational support to deliver significant step changes in performance and value
creation.

Aurora Russia will target companies with enterprise values of up to
approximately £100 million and will seek to secure blocking or controlling
stakes and board representation. The Company intends generally to take equity
stakes of greater than 20% in each portfolio company. It is anticipated that
each equity investment will typically be between £5 million and £25 million.

OSG RM Group

OSG RM Group provides cost-effective total records management, document storage,
data security and confidential data destruction solutions worldwide with new
data facilities opening continually. Established in 1998, the OSG RM Group now
operates 17 storage facilities and approximately 180 employees and is the number
one provider in Russia, Ukraine and Kazakhstan, with a presence in Poland,
Bulgaria, China and Turkey. OSG RM Group currently has over 1,000 clients
ranging from small start-ups to world leaders across all market sectors.



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