1 July 2010

AFI DEVELOPMENT PLC

PUBLICATION OF PROSPECTUS

RECORD DATE FOR B SHARE ISSUANCE

Following its earlier announcements on 20 January 2010 and 26 April 2010, AFI Development PLC ("AFI Development" or the "Company"), a leading real estate company focused on developing property in Russia and the CIS, announces today that it has received the necessary approvals from the UK Listing Authority and has now published its Prospectus in relation to the admission to a premium listing on the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange plc ("LSE") of new B ordinary shares in the Company.

B shares in the Company are expected to be issued on 5 July 2010 by way of a bonus issue to shareholders on the basis of one B share for every one ordinary share held as at close on 2 July 2010.  It is expected that dealings in the Company's B shares will commence on Monday, 5 July 2010.

A copy of the Prospectus is available on the Company's website www.afi-development.ru/en.

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For further information, please contact:

AFI Development

Natalia Ivanova                                                                                                               +7 495 796 9988

Igor Solomon

Citigate Dewe Rogerson, London                                                                               +44 20 7638 9571

David Westover 

Sandra Novakov

Lucie Holloway

About AFI Development

AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001 AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd. Since 1934 Africa Israel Investment Ltd. has been an international investment holding with a unique 70-year experience in real estate development all over the world, including Europe and the United States. 

In May of 2007 AFI Development was successfully admitted to the Main Market of the London Stock Exchange. Through its IPO the company raised a total of approximately US$1.4 billion.  The Company delivers shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction, and quality and customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets in Moscow, the Moscow Regions and other major Russian cities such as St. Petersburg, Volgograd, Kislovodsk. AFI Development has strong track record of consistent growth over recent years and today the Company's existing portfolio has 29 development projects in 15 locations throughout Russia. Comprising commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects, AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighbourhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing what the Company believes to be a strong base for future growth.

This announcement is for information purposes only and shall not constitute an offer to sell or issue or the solicitation of an offer to buy, sell, issue or subscribe for, or the solicitation of an offer to buy, sell, issue or subscribe for any securities in the United States, Australia, Canada or Japan or any jurisdiction in which such offer or solicitation is or would be unlawful or would impose any unfulfilled registration, publication or approval requirements on the Company and should not be relied upon in connection with any decision to acquire ordinary shares or any other securities of the Company.  The securities the subject of this announcement have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold without registration or pursuant to an exemption from, or in a transaction not subject to, registration under the Securities Act.  This announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase any of the securities referred to in this announcement except on the basis of information in the Prospectus published by the Company referred to above.