Rose : Khilkov Project Update

4 June 2014

Rose Group Limited

(AIM: RGI)

Khilkov Project Update

Rose Group Limited ("Rose Group " or the "Company"), the AIM listed developer of quality residential properties in Moscow and the surrounding areas, announces that it has today received a notice of claim filed on 30 May 2014 in Cyprus by Litonor Financial Limited, the partner in the Khilkov Project, for approximately US$100m.  Rose Group believes the claim is completely without merit and intends to defend itself vigorously in the matter. 

Litonor's action follows Rose Group's claim, filed by a subsidiary of Rose Group,  in the District Court in Nicosia Cyprus in April 2013 (announced on 22 April 2013), claiming damage from Litonor following Litonor's failure to perform its obligations in accordance with the partnership agreement dated 19 September 2006.

Further updates in relation to this matter will be provided in due course.

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About Rose Group

Rose Group has been successfully creating new markets in Moscow real estate since 1993.  The Company's innovative drive played a key role in the transformation of Moscow's Golden Mile in the 1990s, when new landmark buildings were constructed that set the benchmark for modern living and working spaces in the rapidly changing Russian capital. Today the Company is focused on serving Moscow's growing middle class professionals by building aspirational, design led, residential communities. Its pioneering Microgorod V Lesu project has set new standards for the Moscow residential sector by offering homebuyers a well configured development, with good facilities and apartments finished to a high quality. In addition to its distinctive residential properties, RGI developed, owns and operates Tsvetnoy Central Market, Moscow's first iconic department store on Tsvetnoy Boulevard. The Company is listed on the LSE's AIM market and has significant land holdings in central Moscow.