RUSSIAN LOGISTIC SERVICE EXPANDS NATIONAL WAREHOUSE NETWORK - Capital Infusion from Great Circle Spurs Rapid Growth

The "Russian Logistic Service" Group of Companies ("RLS") announces it has greatly enhanced its Class A warehouse network in key Russian locations. RLS entered into two long term lease agreements with "International Logistic Partnership" (ILP) for 35,000 square meters of Class A warehouses in Podolsk, Moscow region, scheduled to commence on June 1, 2007, and 15,000 square meters of Class A warehouse space in St. Petersburg, scheduled to commence on July 1, 2007. Separately RLS has entered into a long term lease agreement with the Khabarovsk Aluminum Constructions Plant (KACP) for 10,000 square meters of Class B warehouse space in Khabarovsk, scheduled to commence on January 1, 2007. In all three cities, such warehouse space is among the first available and of the highest quality. The leases are for an initial period of five years. No other terms were disclosed.

"This is an exciting opportunity to leverage our new investment to further build our national warehouse network," said Kirill Vlasov, RLS Founder and President. "I intend to continue expanding our Class A warehouse capabilities in Samara and Yekaterinburg, Novosibirsk, Rostov and other key regional cities in the near future," Mr. Vlasov added.

This announcement follows the June, 2006 influx of capital from The Great Circle Capital Fund.

"The RLS Group has continued to meet our growth objectives and continues to successfully deploy its new capital to better meet the growing needs of it customers", said Paul Rapello, a partner of Great Circle Capital.

RLS plans to continue an aggressive pace of growth over the coming months.

"By the end of 2007, RLS is on target to add another 100,000 square meters of Class A space, making it one of the leading warehouses operators in this country", added Mark Lang, Alfa Capital Partners Managing Director.