Russian Sea Group gained right to conclude contracts for 9 fishing sites in Barets Sea basin destined for commercial Atlantic salmon farming

OJSC «Russian Sea Group», one of Russia's leading consumer food companies, today announces that it won a state-conducted tender for nine sites for commercial Atlantic salmon farming in Barents Sea basin.

The tender was announced on November 2, 2010 by the Barents and White Sea Territorial Administration of the Federal Agency for Fisheries. The tender commission was impressed by the Company's background and our development strategy of the aquaculture in the Murmansk region. Combined with other factors this allowed us to win in tough competition.

The potential farming volumes on the gained basins exceeds 30 thousand tons which represents around 35% of total Russian import volumes. The overall Atlantic salmon farming potential of the Russian Federation is limited by Murmansk region, whose climate conditions are suitable for Atlantic salmon production. Russian Sea Group gained right for commercial fish farming at all most suitable for Atlantic salmon farming sites that were tendered.

The Group plans to start fish farming at these sites in June 2011. The Company will use up-to-date technologies of cage breeding equipped with the automatic control system. The Company plans to invest in the project up to RUR 3 billion.

The development of aquaculture arm of the group is in line with the Group strategy to increase its own source of raw material and decrease dependence on the market situation. It is also fully aligned with the Russian Federation strategy of food security and import substitution.

The Company strengthens its strategic competitive advantages at the fish market and moves rapidly towards a leadership position at the Russian aquaculture market.