Investment in SuperStroy

Aurora Russia Limited
21 December 2007



21st December 2007

  Aurora Russia Limited invests £16.1 million for a 24.3% stake in SuperStroy,
               the largest DIY retailer in the Urals region

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 an investment of £16.1 million in cash
for a 24.3% stake in Grindelia Holdings Limited which owns 99.5% of the retail
chain which operates under the brands 'SuperStroy' and 'StroyArsenal'
('SuperStroy' or the 'Company'). Superstroy is the largest DIY retailer in the
Urals region of Russia, home to approximately 20 million people. Aurora Russia's
investment will take the form of new equity and will be used to redeem certain
existing loans and finance the further expansion of the Company's retail chain
in and beyond the Urals region.

SuperStroy is the fourth company that Aurora Russia has invested in since its
admission to AIM in March 2006. Aurora Russia's three other investments are OSG
Records Management, the leading records management company in Russia,
Kreditmart, a leading Russian mortgage broker and Unistream, Russia's leading
international money transfer company. Of the £71.5 million net funds raised by
Aurora in March 2006, £56.8 million has now been committed. Aurora retains a
healthy pipeline of potential investment opportunities in the business, consumer
and financial services sectors in Russia.

About SuperStroy

SuperStroy opened its first store in 1994 and is now the largest DIY retailer in
the Urals. The Company has successfully expanded its retail network and
geographical presence with strong and well-recognised brands. By the end of
2007, the Company will be operating 34 stores comprising 31 SuperStroy stores
and three StroyArsenal hypermarkets with a total selling space of more than
53,000 m2. The SuperStroy stores are generally 500 to 2,500 m2 in size with the
larger StroyArsenal hypermarkets ranging between 7,000 and 12,000 m2. SuperStroy
is a market leading DIY brand in the major Russian cities of Yekaterinburg which
is Russia's third largest city, Ufa, Tyumen and Perm.

For the year ended 31 December 2006, the Company generated revenues of
approximately 2.7 billion Roubles (£54 million at the current exchange rate).
Revenue for the 2007 financial year is expected to be about 4.4 billion Roubles
(£88.2 million), an increase of 63% from the prior year.

Plans for growth

The Company intends to grow its store portfolio to 74 stores, encompassing a
total selling space of approximately 290,000 m2, by the end of 2011. SuperStroy
will initially focus on developing the business in cities with populations of
more than 0.5 million people.

The DIY market in Russia

Over the past 5 years, the average annual growth rate of consumption per capita
in DIY goods in Russia has been the highest among the Eastern European countries
(Source: Euromonitor). The Russian DIY market is forecast to grow at
approximately 12% per annum in the 2007 to 2011 period and the regions are
expected to be the key driver of this growth. In 2006, the overall DIY market
size in Russia was estimated to be between $7.8 billion and $10.2 billion. Of
this total market, about 60% was attributed to the Moscow and St. Petersburg
markets and only about 30% attributed to DIY chain retail (non-chain retail
includes construction markets, exhibition malls, etc). The Russian DIY market
currently lacks strong federal and regional players and SuperStroy's strategy is
to enhance its position as the regional market leader.

The Russian DIY market also provides consolidation opportunities, as the 5 top
players only control about 16% of the market in monetary terms. Expenditure on
DIY products per capita is substantially lower than in other Eastern European
countries, indicating further room for growth in the Russian DIY market over the
next 5 to 7 years. According to Euromonitor's estimates, by 2011 DIY goods
consumption in Russia will reach €68.3 per capita up from €42.9 at the end of
2006, an increase of approximately 60%.

Commenting on the investment, John McRoberts, Director of Aurora Russia Limited,
said:

'The investment in SuperStroy gives Aurora Russia a 24.3% stake in the No.1 DIY
retailer in the Urals region. This adds to our impressive portfolio of market
leading Russian companies which include Unistream, which recently became the
No.1 international money transfer company in Russia by volumes transferred,
Kreditmart, fast becoming the No.1 mortgage broker and OSG, the No.1 records
management company in Russia.'

Commenting on the investment, Kataev Vladimir Borisovich, General Director of
SuperStroy, said:

'We are delighted to have Aurora Russia as a major investor. Aurora have the
expertise and strong track record of investing in leading and growing Russian
companies, we are convinced that we have a partner who can further drive our
impressive growth.'

Enquiries:

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

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

Notes to Editors:

About 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 midsized private Russian companies
focused on the financial, business and consumer services sectors where the
Directors 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. The Manager shall provide hands-on operational support to
deliver significant step changes in performance and value creation.

Aurora Russia targets companies with Enterprise Values of up to approximately
£100 million and seeks 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.

For more information please visit www.aurorarussia.com




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