THE BOARD OF DIRECTORS' PROPOSAL FOR A NEW ISSUE

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					 PRESS RELEASE




THE BOARD OF DIRECTORS’ PROPOSAL FOR A NEW ISSUE OF
SHARES WITH PREFERENTIAL RIGHTS OF THE SHAREHOLDERS


Press release 01-03-2007


The board of directors’ of Russian Real Estate Investment Company AB (publ) proposal for a new
issue of shares with preferential rights of the shareholders

The board of directors of Russian Real Estate Investment Company AB (publ) has today resolved to propose
that an extraordinary general meeting of shareholders of Russian Real Estate Investment Company AB (publ)
resolve on a new issue of shares with preferential rights of the shareholders.

In brief, the proposal includes the following:
•         A new issue of shares with preferential rights of the shareholders of no more than approximately SEK
          404 million.
•         Owners of shares of series A shall have a right to subscribe for one new share of series A for three
          existing shares of series A. Owners of shares of series B shall have a right to subscribe for one new
          shares of series B for three existing shares of series B.
•         The subscription price shall be SEK 260 per share.

Provided that all shares are subscribed for, the company will receive approximately SEK 404 million before
costs for the new issue.

Background and motives
The reason for the new issue of shares is to meet the company’s needs for funds for the remaining undertakings
under the investment agreement for Moika/Glinki, to complete the construction in the Apraksin Dvor area and
the property at the address Fontanka 57. This new share issue is sufficient to complete the above undertakings
and will, within this framework, enable the company to reach positive cash-flow from 2009.

Overview of time table for the new issue with preferential rights for the shareholders
•      The board of directors intends to give notice of an extraordinary general shareholders meeting during
       next week.
•      The extraordinary general shareholders’ meeting is intended to be held on Thursday 22 March 2007.
•      The record date for participation in the new issue of shares with preferential rights for the shareholders
       is proposed to be Friday 30 March 2007.
•      It is proposed that it will be possible to subscribe for new shares during the period 5 April 2007–20 April
       2007.

The new issue is expected to be completed before 3 May 2007.


For further information, we refer to the notice convening the extraordinary general shareholders meeting and the
prospectus that will be made public.

Stockholm, 1 March 2007
Russian Real Estate Investment Company AB (publ)
The board of directors

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For additional information
Thomas Zachariasson, CEO
tel: +46-8-505 65 117, +46-70-563 77 14
thomas@ruric.com
www.ruric.com



Ruric's business concept is to acquire, develop, manage, let and divest real estate in St Petersburg, Russia, with
a focus on commercial premises of the highest quality in the best locations that can thereby contribute positively
to the business of the tenants. The company has the vision of becoming a leading real estate company in central
St Petersburg.

The strategy is to identify real estate with great potential in the central parts of St Petersburg, create suitable acquisition
structures and acquire at the best price. After renovations, commercial premises of the highest class are offered to
tenants that are looking for the best possible premises in the best locations and are willing to pay for it.




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