Russian Sea Group announces revenue for the six months ended June 30, 2011

OJSC «Russian Sea Group» (the «Company» or the «Group»), one of Russia's leading consumer food companies, today announces its revenue for the first six months of 2011, based on unaudited management accounts.

The consolidated revenue (in Russian Rubles) of the Group increased by 18% to RUR 8 582 million in the first half of 2011 from RUR 7 280 million in the first half of 2010.

Sales in Ready-to-Eat Segment increased by 36% to RUR 2 339 million in the first six months of 2011 compared to RUR 1 723 million in the first six months of 2010. The physical volumes in the first half of 2011 compared to the same period of the previous year have grown by 15% to 8 thousand tons with the average price increasing by 18% in the same period. Increase in sales resulted from a range of measures that were implemented by the Company including average selling price increase in the regions and federal retail chains. Launch of television advertisement in January 2011, promotion campaign in March and April 2011 and sales promotion program aimed at increase of numeric distribution in the regions contributed the sales growth.

In Chilled and Frozen Segment the revenue increased by 6% to RUR 6 862 million in the first six months of 2011 compared to RUR 6 449 million in the first six months of 2010. The physical volumes grew by 1% to 80 thousand tons in the first half of 2011 compared to the same period of 2010. The average sales price rose by 6%. As a result of the restored supply of Norwegian salmon and trout, increase of regional sales and marketing activities in the regions the revenue and sales volumes in Chilled and Frozen Segment have shown a positive dynamics in the first half of the year.

Commenting on the Company results and priorities Dmitry Dangauer, the Company CEO, said:

 "Positive sales trend started at the end of the last year continued in the first half of this year in both segments. We increased the sales prices primarily in the Ready-to Eat Segment achieving the sales volumes growth that positively effected the segment's revenue. Besides we successfully realized a number of marketing activities in order to promote the "Russian Sea" brand and to stimulate sales of "Russian Sea" products. In the second half of 2011 we will continue to implement optimization measures including changes in product mix, further cost cutting, launch of surimi production in Saint-Petersburg at our own production facilities. We pay special attention to development of regional distribution and particularly increasing sales in traditional retail.

In Chilled and Frozen Segment we continue to develop our network of regional sales representatives whose number was already 20 at the end of the first half of 2011 in order to strengthen our presence in the regions. Our target for the second half of 2011 is to further restore profitability of the Group and to increase our sales volumes".

NOTE TO EDITORS

Russian Sea Group was founded in 1997 and began its operations by importing herring and mackerel from Norway. In 1999, the Company launched production of the ready-to-eat fish products under its core ‘Russian Sea' brand and then continued its development as a producer and distributor of fish and fish products. At present, Russian Sea Group comprises two main business divisions, operated respectively by Russian Sea Company, and Russian Fish Company, each a wholly-owned subsidiary of Russian Sea Group.

The ‘ready-to-eat' business (Russian Sea Company) produces and sells "ready-to-eat" fish and seafood products under well-recognized brands, such as "Russian Sea", "Islandka", "Selyodochka Stolichnaya", "Mediterana", "7 Uzlov" and "Flottika". These products include salted and smoked salmon and trout, red caviar, a wide assortment of herring products, seafood, seaweed products and roe spreads. The Group operates a modern fish and seafood production facility in Noginsk, Moscow region (approximately 40 km from Moscow).

The Group's ‘chilled and frozen' business (Russian Fish Company) sells and distributes over 60 types of fish and seafood, including, among others, salmon, trout, cod, herring, mackerel, humpback salmon, pollack, flounder, shrimp and squid, to nationwide and regional retail chains, regional distributors and fish processing companies throughout Russia. The chilled and frozen fish and seafood business sources fish from domestic suppliers, as well as foreign suppliers from 18 countries, including, among others, Norway, the UK, the USA, Chile, Iceland, Vietnam and China. Its major international suppliers include Marine Harvest, Shetland Catch and Norway Pelagic. The Company supplies fish and seafood to over 85% of the regions of the Russian Federation.

The Group also operates a fish farming business (Russian Sea Aquaculture) which commenced operations in 2007 following the Group's purchase of a trout farm at Lake Segozero in Karelia, Russia, the entire output of which is currently sold to Russian Fish Company for further distribution.

For further enquiries contact:

Natalia Trusova
IR manager
Russian Sea Group
Tel.: +7 (495) 258 99 28 ext. 3186
Cell.: +7 (917) 568 42 26
E-mail: nt@rusfishcom.ru
www.russianseagroup.ru