12 July 2010

AFI DEVELOPMENT PLC

MALL OF RUSSIA OPENING

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 the date of the opening of the Mall of Russia has been confirmed for the first week of December 2010.

The Company expects approximately 70-75% of the development's gross lettable area to be leased by the time of the opening. With a total area of 179,930 square metres, a shopping gallery of 305 stores, a cinema with 1,154 seats, and a supermarket of 2,400 square metres, the Mall of Russia is one of Europe's largest retail developments in recent years. Confirmed tenants include major international retailers, such as Marks & Spencer, Gap, H&M, Zara, Next, Bodyshop, as well as X5, Russia's largest retail company. The Mall is expected to generate significant rental income for the Company. Mr. Zeev Klein has been appointed manager of the Mall and has been leading the preparations for the opening. Mr. Klein has extensive experience in shopping mall management in Eastern Europe.

Commenting, Lev Leviev, Chairman of the Board of the Company, said:

"We are delighted to announce the opening of the Mall of Russia in December this year, which represents a key landmark for the Group. This is a high profile and unique retail centre in Moscow which illustrates the Company's development and leasing expertise. We believe that the prestigious tenants and opening for the holiday season will ensure its success."

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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.