TMM Real Estate Development PLC : TMM starts sales of apartments in second phase of Sonyachna brama residential complex

PRESS RELEASE

TMM starts sales of apartments in second phase of Sonyachna brama residential complex

Kyiv, 25 January 2012 - TMM Company started pre-sales of apartments in the second phase of Sonyachna brama business-class residential complex at 73-79 Lomonosova str., Kyiv. The second phase comprises 311 apartments with the total sellable area of 37,000 sq m. The minimal price per square meter for apartments in the second phase is UAH 11,800.
The planned total cost of construction works at the second phase of the complex amounts to UAH 268 million incl. VAT. As of 01.01.2012
the level of the second phase completion is 35% in monetary terms. Currently over 400 construction workers are working on the construction site. Commissioning of the second phase of the complex is scheduled for the 4th quarter of 2012.

Alexey Govorun, Deputy CEO on marketing: "Today we observe return of demand for real estate in buildings under construction which is driven by lower prices (around 20% less than in completed projects) and larger selection of apartments. However, only reliable, experienced construction companies showing high pace of construction are able to pre-sell apartments in uncompleted projects".

The second phase of Sonyachna brama complex consists of 5 buildings (5, 10, 13, 15 and 19 storeys) with the total buildable area of 57,200 sq m including: total area of 311 apartments - 37,000 sq m, area of commercial premises - 6,000 sq m, underground parking area for 283 spaces - 10,400 sq m. The project is being realized in partnership with Kyiv Taras Shevchenko National University, who acts as an employer of the project construction. As reported earlier, TMM increased its credit limit with JSC Oschadbank in order to complete the 2nd, 3rd and 4th phases of Sonyachna brama complex.
The four buildings of the second phase (5, 10, 13 and 15 storeys) are currently at the level of monolith frame construction with the brick laying works started. Another building, a 19-storeyed residential block is 75% complete with glazing and internal engineering works underway.
The buyers of apartments in the second phase of Sonyachna brama, as well other TMM's projects under construction, are offered an installment scheme for the period of construction. The buyers of completed real estate in TMM's projects can use a 20-year 12% mortgage in UAH offered to TMM's clients by JSC
Oschadbank.

This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities. Certain statements in this news report are forward-looking statements and, as such, are based on the management's current expectations and are subject to uncertainty and changes in circumstances.

Kyiv, 25 January 2012

About TMM:

TMM is a leading Ukrainian real estate development and construction company delivering residential, office and commercial real estate projects in Kyiv, Kharkiv and the Crimea.

During the past 18 years the Company has completed 32 projects totaling to over 600 thousand sq m. Currently TMM's portfolio includes 34 projects with the gross buildable area of 2.7 million sq m. and additional area of 150 ha in land plots held for development.

www.tmm.ua

For any additional information, please contact:

Larysa Chyvurina Chief Financial Officer Tel: [phone] [e-mail] Galyna Posypailo

Investor Relations Manager Tel: [phone] [e-mail]

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