stroyprogress

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We build for Russia’s benefit

❚ CONSTRUCTION ❚ TECHNOLOGIES ❚ INNOVATIONS

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❚ GROUP OF COMPANIES

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Meeting Challenges of the Future

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GREAT DEEDS HAVE TO BE PERFORMED, BUT NOT BE ENDLESSLY SPECULATED ABOUT Julius Caesar

Albert Alexandrovich Dzhussoyev General Director LLC FIRMA ‘STROYPROGRESS’

DE AR FRIENDS! Let's speculate on what makes a person moving forward. They frequently say that this is a wish for success. I am ready to agree. But is this an absolute objective or only a part of something that is more important? Everybody understands success in a different manner. In addition to this, success is a competition: a desire to take the lead, to leave behind. What helps us to receive evidence that the one you are willing to leave behind is worthy of your efforts in this direction? I believe that the word ‘direction’ is important here by itself, as the idea of ‘success’ has no vector without it. Our Company is certainly being driven by a dream and I am convinced that it acts as a powerful engine and an organizing force. A dream is a future, which exists in the present as an image of a realized project. We see it. We strive for it. That is why, we are obliged to start every business of ours with all responsibility. What is our dream? What is our vision of the future? We see an image of revived Motherland. We see nice houses, safe roads, preserved nature, correctly exploited mineral resources, and happy community. That is what makes our life and work sensible. Our Company deals with construction. Construction is a sphere of enhabced responsibility. Selecting this industry as a sphere of our business Company in addition to the current challenges shall simultaneously consider and envisage approaching prospects and accept the challenges of the future. I do not know any other business, which could be so easily combined with the definitions of ‘the future’ and ‘a dream’! As it is frequently said about the persons driven by a dream: they are ahead of their time, they do something that never existed before, something unique. At a first glance our projects are often perceived as ambitious, risky or even fantastic. But when the latest project is successfully completed and appears to everybody as a phenomenon of the present, everybody accepts it as a unique one. And this is really the case! Embodied in life through labor and knowledge, it comes from the future, which we have brought to people. We just moved it a bit nearer to the present. We helped to understand and even to see this future. I hope that many people will have their hopes revived.

Revived Russia is our Mission and our Dream

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Stroyprogress: yesterday, today and tomorrow

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We look in the future with confidence and we move forward with confidence LLC FIRMA ‘STROYPROGRESS’ was founded in 1989 as Open Joint-Stock Company on the basis of ‘Glavmospromstroy’ State Association as general contractor. In August of 2008 OJSC FIRMA ‘STROYPROGRESS’ was reorganized in Limited Liability Company.

DURING 20 YEARS of sustainable development the Company became one of the biggest and most reliable enterprises of state value at the construction market of Russia both in terms of constructed and erected facilities, and in terms of its capacities.

Our objective is to become a leader of the construction market of Russia, to develop this market, to introduce new and to enhance the existing technologies

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‘STROYPROGRESS’ acts as investor

and general contractor of projects of different levels of complexity. Participation in the programs of federal and regional value allowed the Company to realize jointly with international organizations a number of major strategic programs, such as construction of facilities for chemical weapons destruction and the main gas pipeline from Russia to South Ossetia (Dzuarikau–Tskhinval.)

ALBERT DZHUSSOYEV, General Director:

We had many problems at the beginning, especially during the times of perestroika (reorganization), when all the system of planning was destroyed, and we had to grab any work in order to keep on the float. Our Company was young, without any impressive capital, and due to this reason we were unable to afford being idle. But the most difficult year for me was 1998: we were contracted a large project and received a big advance payment for it. Finally this money and almost all capital of ours were lost due to the default. It was essential and critical period both for the destiny of the Company and my destiny as a manager. I am very grateful to my colleagues: nobody including chief specialists and simple workers quitted and kept on working without any payment for almost a year. We managed to survive this time, to recover and to pay off all debts. Prosperity of ‘Stroyprogress’ started after these hard times. The present period of our business can be definitely characterized as fortunate for the Company. We keep on moving forward in implementation of our strategic tasks: profitable contracts with major domestic customers are being signed, revenues are growing. We take pride in the fact that we won a tender and started practical designing and construction of a unique residential district in the living settlement of Tomilino, Moscow Region, that we have a project for construction of Multifunctional High-Rise Complex approved by Moscow City Development Council, and signed a number of contracts for construction of oil and gas pipelines in Western Siberia, launched our own sand and gravel quarries in Chelyabinsk and Kurgan Regions. We also plan to further expand and develop our work and our presence in many Russian regions in every possible way. This is our strategic line. High quality finance management, mature approach to signing of contracts, reliability of our counteragents — all this allows us to look in the future with confidence.

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Trends of Construction Activities

CIVIL AND INDUSTRIAL FACILITIES OF ANY COMPLEXITY AND FUNCTION

OIL AND GAS PIPELINES, CONSTRUCTION OF FULL INFRASTRUCTURE OF FUEL AND ENERGY COMPLEX

HOUSING AND UTILITIES COMPANIES

PROJECTS OF SOCIAL, CULTURAL, MEDICAL, MILITARY AND SPECIAL FUNCTIONS

We value the multi-year stable relationships both with the federal agencies, and with respectable commercial organizations

COMPANY ACTS as investor and general contractor. We provide a wide range of services to major Russian and international corporations:

❚ participation in development of all stages of designing (so-called ‘parallel designing’*) ❚ investing in projects and manufacturing ❚ high-tech construction ❚ laying of any service lines ❚ mounting works ❚ commissioning ❚ warranty support.

‘STROYPROGRESS’ implements

projects of various level of complexity up to unique ones for the most demanding customers. Experience of the business units within the company, manpower, resource and technological potential allows us to carry out multiprofile works on a tight schedule at the highest level. We are capable of implementing any project: from investing and construction to operation of already built objects.

* PARALLEL DESIGNING — evaluation of the demand for execution of planned works subject to keeping the existing operating utilities on the construction site

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Company’s steady position at the market and confidential attitude to its image are our fundamental values. All this allows us to participate in investment programs of the state value

PARTNERSHIP means much more for us than a simple combination of participants’ efforts in a separate project or separate program. Strategic partnership is the key principle of our interaction with partners. In connection with this we see the following components of successful cooperation:

❚ long-term partnership ❚ high level of mutual responsibility ❚ transparency of joint business running ❚ high professionalism of partnership participants ❚ serious attitude to the business at all stages of partnership ❚ determination for ultimate result.

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OUR OBJECTIVE is to become a

leader of the Russian construction market, to develop this market, to introduce new and to enhance the existing technologies.

OUR REPUTATION IS QUALITY. Construction of the most sophisticated technical complexes requires continuous control over resources, management and procurement, compliance with technologies and measurements accuracy. ‘Stroyprogress’ is a multi-dicsipline Company capable of implementing the entire cycle of construction works at the highest level.

WE HAVE EXPERIENCE in construction of major facilities in the capital city, such as:

❚ ❚ ❚ ❚ ❚ ❚

AMO ‘ZIL’ AZLK Moscow Gelatinous Factory Moscow Abrasive Works House of Journalists Schools, buildings and structures of different social functions.

We have already expanded our geography over many regions of Russia and abroad. We have built dozens of projects in Russia, participated in construction projects in Shanghai (China).

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Geography of Our Projects

We guarantee quality of our work in any point of the country. Regional objects shall also be special ones, catchy by their unique nature and have the required infrastructure

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IMPLEMENTED PROJECTS Chronology of progressive movement ❚ Moscow. Representative Office of North Ossetia under the President of Russia (1993–1995). ❚ North Ossetia, Vladikavkaz. Treasury Building (1993–1995). ❚ Moscow. Industrial Base, Stage 1, RAO ‘Gazprom’, (1995–1996). ❚ Moscow Region, Istrinsky District. Recreation Center ‘Soyuz’ of OJSC ‘Gazprom’. ❚ Moscow. Clinical Hospital under Administration of the RF President (1992–2001). ❚ Center of Diagnostics and Rehabilitation for OJSC ‘Gazprom’ (2002). ❚ Tambov Region, town of Pervomaiski. Professional Education Center of LLC ‘Mostransgaz’ (2000). ❚ Inter-shop gas pipelines of Chemical Weapons Destruction Facilities (in 7 regions of Russia.) ❚ Krasnodar Territory, Sverdlovsk, Tver Region. Distribution Gas Pipelines of Living Settlements as per administrative orders of regions. ❚ Tomsk Region. Oil Pipeline ‘Vasyugansky–Raskino’ (41 km) as per the Order of OJSC ‘Tomskneft’. ❚ Voronezh. Central Clinical Hospital, South-East Railways (2003–2004). ❚ Belgorod Region, town of Stary Oskol. Division for Unified Technical Inspection of South-East Railways Cars (2003–2004). ❚ Voronezh Region, town of Liski. Concrete Products Plant (2003–2004). ❚ Kurgan Region, town of Schuchiye. Water pipeline (35 km) (2002–2003). ❚ Kurgan Region, town of Schuchiye. Sewage Systems and Water pipeline (24 km) (2003–2004). ❚ Moscow. Construction and Refurbishment of the Central Clinical Hospital, Russian Railways (2003–2004). ❚ North and South Ossetia. Residential Buildings and Structures (residential houses, cottages). ❚ Sochi. Construction of the Central Clinical Hospital, Russian Railways and Tourist Complex of ‘Marine Cool’ (2003–2004). ❚ Udmurt Republic, town of Kambarka. Main workshop at chemical weapon destruction facility, zone of international inspection (two buildings of hotels), water supply and water pipeline (12 km) (2004–2005). ❚ Kirov Region, Oritchy living settlement. Medical Diagnostic Center, building of Boiler House, zone of international inspection, workshop of destruction of chemical weapons (2004–2005). ❚ Construction of motor ways (2003–2005). ❚ Tomsk Region, town of Strezhevoi. Construction and major repairs of gas- and oil pipelines, construction and installation of field facilities at South-Okhteurskoye Oil Field (2005). ❚ South Ossetia — Republic of North Ossetia-Alania. High-mountainous gas pipeline ‘Dzuarikau–Tskhinval’ (2007). ❚ Central Caucasian Ridge. Construction of frontier posts ‘Suargom’ and ‘Tib’ (April, 2006).

PLANS FOR FUTURE: ❚ Moscow Region, Tomilino living settlement. Construction of ultramodern residential district with the total area of 1 mln m2. ❚ Moscow, Altufievskoye Shosse. Construction of Multifunctional HighRise Complex.

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Moving to Success

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OUR ADVANTAGES: professional human resources, private up-todate equipment, up-to-the minute technology, private raw stock and production facilities and bases. We invest most of out profit into development of trends ensuring our superiority in industry.

Our superiority is our leadership in industry

COMPANY striving to become a market leader has to be maximally self-dependent in terms of its provision with human resources, equipment and other products, it shall have production and technical bases of its own to be an integral construction and repair contractor.

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CORPORATIVE INTERESTS of the company require for the best use of the investments to ensure their exact compliance with the calculations provided in the design and estimate documents. Availability of the dedicated technical equipment makes us capable to operate as a single contractor.

Man power is always essential

LLC FIRMA ‘STROYPROGRESS’ is manned with highly qualified personnel of various construction specialties. It has over 3000 personnel. An individual mobile subdivision capable to ensure high-tech construction, utilities construction and assembly works is usually formed for implementation of any project. It has dedicated transportation equipment, special equipment and construction machines, warehouses, modular offices and accommodation rooms. At all stages of our operations we adhere to technological, safety and environmental protection standards.

High quality up-to-date construction requires for absolute control of the entire complex of work, effective coordination of the company divisions involved into projects

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Our main advantage is that all divisions ensuring independent operations within entire complex of works are manned with professionals

Company-owned production bases, warehouses and quarries

‘STROYPROGRESS’ has its own pro-

duction and warehouse facilities in Moscow, Istra District of the Moscow Region, in North and South Ossetia, town of Shchuchie (Kurgan Region), town of Kambarka (Udmurt Republic) and quarries in Chelyabinsk and Kurgan Regions; it runs independent business within entire range of activities related to exploration, engineering and paper work related to obtaining permits for production of soil construction materials such as sand, clay, gravel, SGA (sandgravel aggregate).

LOW IMPACT TECHNOLOGIES. Company produces soil construction materials with due account of all requirements to rational nature management and environment protection.

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TO BE THE LEADER in construc-

tion industry it is necessary to keep under control all the issues from sand quarries to mortar and concretes production. ‘STROYPROGRESS’ holds the keys of these functions.

CURRENTLY two quarries are being actively developed:

❚ Beloyarski Sand Quarry (Shchuchanski District, Kurgan Region) with reserves up to 10 Mm3 and annual sand and sand-gravel aggregate production rate up to 50 Mm3 and 40 Mm3, respectively; ❚ Fedorovski Gravel Quarry (Chelyabinsk Region) with reserves up to 7 MMm3 and annual gavel production rate up to 6 Mm3.

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Company-owned automobile fleet: Mechanical Department

New blasting technologies

THE VARIETY of special equipment of LLC Firma ‘STROYPROGRESS’ ensures fulfillment of any type of construction and other operations. No need in additional lease of equipment reduces Company’s costs in each specific aspect and at any construction site.

MECHANICAL DEPARTMENT of the Company has affiliations in six regions. Their centralized management ensures their flexibility: equipment can be timely moved from one site to another. Equipment is fitted with navigation system ensuring full monitoring and control of its location.

BLASTING OPERATIONS — main technology for breaking the way. They are rather labor consuming and technically complicated, so they require strict adherence to ‘Blasting Operations Uniform Safety Rules’.

WE HAVE several standalone special services within Mechanical Department: Operations, Repair, Dispatch, Logistics and Procurement Services. Repair bases located in towns of Alagir, North Ossetia (the largest one); Moscow; Shchuchie, Kurgan Region; Istra, Moscow Region; Tula, Tula Region, etc. Mechanical Department is manned with nearly 300 high class specialists. Annually the number of equipment grows by 20–25 %.

COMPANY HAS over 270 units of construction machinery: Vehicles, excavators, heavy dump trucks, bulldozers, pipelayers, truck-mounted cranes, compressors, heavy haulers of well-known brands, such as Scania, Hitachi, Caterpillar, Kato, etc. Company transportation fleet includes vehicles of various capacities ensuring but not limited to combined cargo transportation.

FOR THE FIRST TIME for rock shelves construction we applied a new blasting technology differing from the common methods of trenching and excavation in rock and permafrost soil accompanied with high sound waves and high-explosive (propellent) action at some distance from the charge. New technology is three times faster, it is noiseless and eliminates any propellent action: stones crash and fall to pieces. Another example is the open mining of mineral resources: without reduction of production volume we switched to a safe and low impact method of no blasting technology.

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Experience of construction of unique roads

ROADS, ACCESS WAYS to the projects are the essential components contributing not only to successful and timely completion of the entire construction project; it is also half the battle for correct future functioning of the completed project.

ALL ROADS are constructed by the appropriate subdivisions of ‘Stroyprogress’ in accordance with requirements of the regulations and the strictest SNiP requirements. The road shall be safe. It has to work. ‘Stroyprogress’ proprietary road-building machinery ensures high quality road construction and eliminates costs for additional lease and servicing.

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Utilities construction

WE BUILD in various regions of the country. It means various, often exactly the converse situations, extreme weather, climate and landscape conditions. From the very moment of Company foundation we bear all responsibility for independent and high quality road construction for our projects. This hard work gave Company invaluable and unique experience of road construction across impassable swamps, in permafrost, highlands, high and low temperature conditions. The geography of our projects verifies this thesis: West Siberia, Udmurtia, Chelyabinsk and Kirov Regions, KhantyMansi Autonomous District, North Caucuses and other regions with tough conditions.

AWARDING US A GENERAL CONTRACT

Customer receives a turn-key project with all utilities from the sanitary/technical to internal and external utilities built by a single company. Pursuant to the license for structural engineering we offer construction of a complex of engineering equipment, networks and systems: ❚ heating, ventilation and air conditioning ❚ water supply and sewage ❚ heat and cold supply ❚ power supply (up to 10 kV) ❚ electrical equipment and lighting ❚ communication and alarm systems ❚ radio and TV networks ❚ utilities dispatching, automation and control.

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‘STROY TEKHNIKA’ PLANT (TULA)

In-house production

WE INTRODUCE the most efficient technologies of quality control to ensure safety for personnel and equipment, to adhere to the upto-date industrial standards and environmental requirements.

Special projects: ❚ fire-fighting, fire alarm and warning, smoke protection and fire escape systems ❚ security alarm, video observation and monitoring systems.

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CONSTRUCTION ALWAYS demands for application of extra materials and the most effective way to settle this issue is to develop their in-house production.

‘STROYTEKHNIKA’ PLANT included

into LLC Firma ‘Stroyprogress’ fabricated the following construction accessories and products: ❚ windows and doors of PVC profiles from the world leading brands ❚ aluminum and steel structures (doors, stained-glass window and shopwindows) ❚ full-sheet steel tile-based roofing materials ❚ ventilation ducts and water drainage systems ❚ woodwork products ❚ ironmongery products ❚ spare parts production and equipment repair.

NEW WOODWORK PLANT is equipped with up-to-date machines for fabrication of products required for construction projects.

TO ENSURE high world quality standards of the fabricated products Company cooperates with the research labs on a permanent base that in turn ensures timely response to all changes in construction market conditions.

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Dzuarikau – Tskhinval Gas Pipeline

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Project of State Importance

ONE OF THE MOST IMPRESSIVE ‘STROYPROGRESS’ PROJECTS is currently constructed Dzuarikau–Tskhinval Gas Pipeline — the most high-mountainous project in the world. It is a unique challenge of the epoch. The constructors have to solve a problem that cannot be cancelled even by the recent war in South Ossetia: to spark the flare of victory symbolizing completion of a gas pipeline construction in Tskhinval in June 2009.

DZUARIKAU–TSKHINVAL GAS PIPELINE — is the largest and the most technically complicated project. By its parameters it had to be added to the Guinness World Records. There is no other place in the world, where a gas pipeline is constructed so high above the sea level: 3200 m. The route passes in the most complicated geological conditions: cliffs, rockslides, snowglides, permafrost, mountain rivers. About 70 km of the total 163 km pipeline length are located on the southern side of the Caucasian Ridge with 25 km in almost inaccessible mountainous areas: a slope of Kudarski Pass, the area near Kemulta Settlements, where the most complicated relief has a very steep slope; Patza River crossing near Gufta Settlement and Zara Pass. Even in these four areas there are especially difficult places, where gas pipeline builders take risks every day. This is a narrow and steep path about 7 km long upwards along the granite rocks to the top of Kudarski Pass. ‘Stroyprogress’ workers and engineers started the assault of the unscalable section at 3000 m height during summer season, when it is possible to work in high mountains. Builders equipped with the up-to-date heavy bulldozers and excavators step by step approached to the sacred goal. Finally the long-awaited report arrived: ‘Way is open!’ It means that after project completion a new seasonal road from Zaramag to Kwaisa will step over the ridge in parallel with the gas pipeline, and despite of the steep slope it will be rather spacious: 18–24 m wide mainly and 12 m wide in some places only. The way from Vladikavkaz to the mining center of South Ossetia will become 46 km shorter. The size of the huge project is verified with the following figures: more than ten tunnels, dozens of river bridges, 300 km of pass-bys and access roads will be constructed.

In 2006 LLC Firma ‘STROYPROGRESS’ was awarded contract for Dzuarikau — Tskhinval Gas Pipeline construction across the Caucasian Mountains from North Ossetia to South Ossetia. Project investor — Gazprom OJSC.

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This project is the pride of Company. This is the heroic deed of people, who work in extreme conditions: bulldozers working at the edge of steep are fitted with backup steel wire ropes

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Within entire area of construction we are very careful to avoid and protect historical monuments. We’ll preserve forest and will not impact natural landscape

UNIQUE BLASTING OPERATIONS Blasting is the main technique used for route construction. Blasting is essentially labor consuming and technically complicated in this area as it requires strict adherence to ‘Blasting Operations Uniform Safety Rules’. For the first time for rock shelves construction we applied a new blasting technology differing from the common methods of trenching and excavation in rock and permafrost soil accompanied with high sound waves and high-explosive (nonshattering) action at some distance from the charge. New technology is three times faster, it is noiseless and eliminates any propellent action: stones crash and fall to pieces. Intellectual component: along the entire gas pipeline the satellite transducers will be installed to record the slightest variations (linear and vertical pipe expansion, displacement) and to transducer the data to a control room. These intellectual transducers will prevent from accidents caused by the active processes of the mountainous organism.

IT IS ESSENTIAL that Kudarski Pass was conquered by ‘Stroyprogress’ builders in cooperation with local engineers and workers: both parties were perfectly aware how important the Russian gas and new pipeline routes from Russia are for the South Ossetia people. It was the Moscow-Alanian alloy that was a success this time as it had been more than once in the past. Every winter the top of Kudarski Pass is covered with snow: sometimes the snow cover is several meters thick. So it was essential to finish works timely at this extreme altitude. Here the construction terms shall comply with natural conditions: pipes can be welded and laid in the mountains only during warm season. It means that it is important to finish the work in plane areas timely to consolidate all man power and equipment on the mountain ridge on the eve of the number one site commissioning (note that the gas pipeline shall be commissioned in summer of 2009). Gas pipeline will be commissioned timely!

THE IMPORTANCE OF THE GAS PIPELINE FOR SOUTH OSSETIA.

THE IMPORTANCE OF THE GAS PIPELINE FOR ‘STROYPROGRESS’. The

South Ossetia will receive 260 MMm3/year of gas. This will produce additional incentives for development of the industrial life of the region. The gas pipeline will be a kind of a blood vessel for South Ossetia, as well as the roads constructed on the way to Tskhinval.

high-mountainous gas pipeline is an image national project. As a result of this project implementation Company has occupied a worthy position at the construction market in the segment of oil and gas pipeline construction in mountainous conditions.

Project size: more than ten tunnels, dozens of mountainous river bridges, more than 300 km of access roads

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CARE IS OUR RESPONSIBILITY Initially it was supposed that the gas pipeline will be routed along the right bank of Ardon River. However finally a rather complicated technical decision was made: the route crossed the river to its left bank, where no historical or architectural monuments are available. Thus the gas pipeline route was moved away from the place sacred for the Ossetians, which the pilgrims worship, and from the ancient Alanian Customs gates. For this purpose the builders constructed four extra tunnels from 106 to 300 m long!

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South– Okhteurskoye Oil Field

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The development of South-Okhteurskoye Oil Field holds up hope for development of the entire region

‘STROYPROGRESS’ oil business is managed by ‘Rusneftegaz’ CJSC. This holding runs three oil producing companies: ‘South-Okhteurskoye’, ‘TIK’ and ‘Kievskoye’.

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NOWADAYS HYDROCARBONS IN RUSSIA are mainly produced by large companies. They possess actually entire infrastructure for oil transportation and processing, over 90% of reserves and underexplored oil resources. Both producing, shipping and processing assets became the property of several companies actually at a time at the beginning of 1990’s. In these conditions the smaller fields may have unenviable fate, unless it has an assiduous owner. South-Okhteurskoye Oil Field, which reserves once were underestimated, is a good example. The field was discovered 16 years ago. It was one of the numerous and not outstanding oil fields of Vasiugan-Alexandrov Mega-Bar System. During the latest five years the license for the field development is owned by ‘South-Okhteurskoye’ LLC, which 100 % stake is owned by ‘Rusneftegaz’ Holding that is included into LLC Firma ‘Stroyprogress’. Holding has highly qualified specialists and runs active business within the framework of the Field Modernization Program effective till 2009. Analysis of well test data, reprocessing and re-interpretation of the previous seismic data verifies that the oil reserves were underestimated both during reserves assessment in 1996 and in the reservoir development plan of 2001. Several formations were not considered as potential pay zones. The peculiar features of the field structure were not taken into account. Program drafted by ‘Rusneftegaz’ experts included: construction of an all-year road, filling and construction of new cluster sites, repair and insulation of the old well stock, drilling of new producing wells and achievement of annual production rate up to 120–140 TMt. This goal has already been achieved in 2008. It is supposed that after prompt re-estimation the recoverable oil reserves will comprise 1.2 – 1.3 MMt/year. Though final recalculation is possible after completion of the field further appraisal and new wells drilling only, the recoverable reserves may supposedly comprise about 2 MMt/ year of oil at the preserved assumed assessment parameters. Company plans to achieve 1 MMt/year production by 2012. During two latest years oil production in this field has increased 10-fold. The goal is to increase total oil production up to 1 MMt/year by 2012.

During two latest years oil production in this field has increased 10-fold. The goal is to increase total oil production up to 1 MMt/year by 2012

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The subsoil of our country requires for investigation and up-to-date high quality development. This is the task that will make it possible to revive Siberian regions, when solved

THE NOBLE END JUSTIFIES THE MEANS. South-Okhteurskoye Oil

Field is not an exclusion. Up-todate research and development methods currently ensure and will ensure the future prolongation of life of plentiful producing fields, which oil potential as the potential of the entire Tomsk Region is far from being depleted. That is why the South-Okhteurskoye Oil Field is just the first step in development of ‘Stroyprogress’ oil business. Company displays high activity in search of new fields in the north of Tomsk Region as well as in the eastern part of Khanty-Mansi Autonomous District, and participates in auctions for the exploration sites in these areas.

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THE SUBSOIL OF OUR COUNTRY requires for investigation and up-todate high quality development. For sure the efforts of individual companies, even large ones, without governmental participation are not sufficient to solve the problem of renovation of the industry. However under current circumstances the long-term oil production development by the investors is a difficult and noble goal. Our sincere belief is that this is the end that justifies the means. Aspiration to achieve this goal is a task, which solution would let Russian companies to revive the oil bearing regions of Siberia based on the up-to-date surveys and geologists’ experience, as well as on the support of regional authorities. We also hope this will give grounds to our Motherland future power and the basis for our success, security of our children and grandchildren.

‘STROYPROGRESS’ offers comprehensive construction of sites in oil and gas fields, main transportation routes, oil pretreatment facilities, effluent treatment plants and tank farms, main gas and oil pipelines, and distribution gas pipelines.

The best confirmation of the efficiency of our approach to business is cooperation with such companies as Gazprom and Transneft, participation in international programs, cooperation with German, US and Canadian companies developing fields in Russia.

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Farewell to the Arms

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Construction of Chemical Weapon Destruction Facilities

In 1999 through the tender LLC Firma ‘STROYPROGRESS’ became a participant of Federal target program ‘Chemical weapon destruction in Russian Federation’ and contributed much towards both the construction of industrial facilities for chemical weapon destruction and the construction of social and utility infrastructure facilities.

FEDERAL TARGET PROGRAM ‘CHEMICAL WEAPON DESTRUCTION IN RUSSIAN FEDERATION’. Federal Agency for Industry (present Ministry of Industry

and Trade of the Russian Federation) was the state customer for this Program implementation. Along with the Russian Federation, the USA, UK, Germany, Canada, Switzerland and many other countries contributed a lot towards the Program implementation. Foreign states rendered technical support through their companies, which in their turn held a number of tenders for project construction. ‘Stroyprogress’ acquired a great experience of collaboration with the leaders of the world industrial construction such as Parsons and Bechtel (USA), Lurghi (Germany). Within the framework of the fruitful international cooperation, a number of additional project facilities, without which the effective operation of the facilities for chemical weapon destruction would not have been possible, was built and brought into operation. Thus, for example, in breaking short terms, due to advanced technologies employed, a 27 km long utility network right-of-way to the industrial zone of a chemical weapon destruction facility in town of Shchuchye, Kurgan Region, was built; and the main production buildings of the chemical weapon destruction facility in town of Kambarka, Udmurt Republic, was brought into operation. It must be emphasized that the participants of the international programs of such scope and level bear enormous responsibility. This includes the compliance with the standards and requirements, which protect state and political interests. And also in this case ‘Stroyprogress’ stands up to the mark.

‘Stroyprogress’ is an active participant in implementation of international programs and state projects, carried out under the auspices of foreign countries such as the USA, Canada and the countries of the European Union

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‘Stroyprogress’ guarantees confidentiality of the information, which it has access to while working on such projects

CARE AS THE MANIFESTATION OF RESPONSIBILITY Being one of general contractors under the Program and in addition to fulfilling specific obligations as a Program contractor, ‘Stroyprogress’ constructed and brought into operation dozens of facilities including industrial facilities, zones of international inspection in the town of Kambarka, Udmurt Republic; polyclinic consulting and diagnostics centers in the town of Schuchye, Kurgan Region and in the settlement of Maradykovsky, Kirov Region; residential houses, automobile roads, utility networks and many others.

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ACCORDING TO FTP ‘Chemical weapon destruction in Russian Federation’ the chemical weapon destruction plants are being built in seven regions of the Russia:

❚ the town of Schuchye, Kurgan Region ❚ the town of Kambarka, Udmurt Republic ❚ the settlement of Gorny, Saratov Region ❚ the settlement of Maradykovsky, Kirov Region ❚ the town of Pochep, Bryansk Region ❚ the settlement of Leonidovka, Penza Region ❚ the settlement of Kizner, the Udmurtian Republic.

NOWADAYS five of seven chemical weapon destruction facilities are brought into operation and conduct full scope of work on chemical weapon destruction.

THE CONFIDENCE IN THE COMPANY

is also ensured by Company’s management serious attention to the information field related to Company’s performance at complex strategic projects. Keeping confidential ‘Stroyprogress’ simultaneously supports ‘Program of Environment Investigation Publicity’.

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Green Cities of the Future

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A garden city will be here!

LLC FIRMA ‘STROYPROGRESS’ took part in a tender for the development of the 47 Ha built-up area in the settlement of Tomilino, Luberetsky District, Moscow Region, and won the tender. The building layout concept, proposed by the Company, the terms of the area development and, of course, the company reputation made it the winner of the tender.

The approximate cost of the whole project is $ 1.5 billion. The main share will be invested by ‘Stroyprogress’. The project is being carried out in collaboration with the Administration of Moscow Region. The design is being developed by Shanghai City Architectural Design Co., Ltd. and MP MO ‘Mosgrazhdanproekt’. The construction will commence in 2009 and is planned to be completed in 2012.

RESIDENTIAL DISTRICT ‘RAYSKY SAD’ (PARADISE GARDEN) in the settlement of Tomilino sets the direction for cities development. The main stake in the construction of the cities of the future is placed on ecology, aesthetics, comfort and safety of a residential district. Residential districts of a modern city will create an effect of wide, light and free space. The new district in Tomilino is planned this way. This project is an example of the complex area development concept, which is not typical for Russia. It will actually become a pilot project in the market of this class of housing. The principle novelty of such ‘green cities of the future’ is in the fact that they will have no drive ways and parking lots in the yards, the latter will be arranged in multi-level underground arteries. The space will be accessible for comfortable life of people. The district house yards will resemble small public parks, where green areas, pavements and play grounds are separated by a cascade of artificial lakes and streams. Here everyone will be able to find an occupation after own heart — riding a bicycle, playing tennis or football, swimming in a pool or contemplating on the meaning of life while sitting on a bench in a square. THE DISTRICT INFRASTRUCTURE, according to the project, satisfies all requirements of urban civilization, taking into account intellectual character of the companies, located within the territory of the settlement of Tomilino (space, aviation, instrumentation technology). A sport and recreation center and a swimming pool are planned to be constructed within the district. The district will be a part of the settlement of Tomilino, therefore, the residents of the future district will be able to enjoy all social infrastructure (day-care centers, hospitals, shops, etc.). 27-storeyed houses with enhanced apartments’ layout will be located along the motorway. Residential houses with various number of storeys will be built in the central and eastern parts of the district. The specific feature of the project will be the fact that for the first time in the Russian market a residential district is totally deprived from drive ways and yard parking lots. Access roads to the houses will be arranged in multi-level underground arteries at the approach to the complex; a house resident and his guests will be able to reach a required house, park the car and, without going outside get to the required flat with the help of an express elevator.

When designing and constructing the cities of the future the main emphasis is laid on housing ecology, aesthetics, comfort and safety

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The design of the residential district in suburban settlement of Tomilino in Moscow Region gives hope that the care for people and their desire to live a beautiful and comfortable life will become customary reality

FOR THE FIRST TIME IN THE HOUSING MARKET OF MOSCOW REGION the Company offers a unique product, which includes personal living space as well as the organized environment with footpaths, play grounds, artificial rivers, ponds, etc. Owing to the professional work of engineering and technical staff of the company, aiming at the reduction of the utility works for the residential district, the solutions pertaining to gas supply and gas reciprocal plant construction, which will provide the residential area with hot water as well as with electricity, it becomes possible to turn this project into reality.

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The construction of approximately 1 million square meters of housing is planned within the area of 47 Ha. The complex will be located along Ryazanskoye motorway in the settlement of Tomilino, Luberetsky District, Moscow Region. Residential areas comprise 60 %, while social infrastructure facilities (underground parking, schools, day-cares, polyclinics, trade centers, etc.) and utility infrastructure (switching stations, heat units, gas distribution plants, etc.) comprise 40 %.

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Image of the Future

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Sky-scrapers of the multi-functional high-rise complex in Altufievo (Moscow) will set a new system of coordinates

THE PROJECT OF A MULTI-FUNCTIONAL HIGH-RISE COMPLEX on Altufievskoye Shosse won the first prize at ‘Hotel and Tourist Complex Facilities’ exhibition in May, 2007. The project is implemented within the framework of the General Plan of the Capital City Development up to 2020. City Planning Council has approved the design, all clearances are obtained — starting from the air force authorities and up to the Ministry for Civil Defence, Emergencies and Disaster Response, over one hundred all in all. After obtaining a permission for construction, the detailed design will be started.

TECHNICAL SPECIFICATION Built-up area — 0.4 ha Total area — 290 000 m2 Including: ❚ 85-storeyed building — 95 000 m2 ❚ 70-storeyed hotel building — 64 000 m2 ❚ 53-storeyed office building — 53 000 m2 ❚ atrium — 8 600 m2 ❚ technical zone — 13 000 m2 ❚ parking area for 4200 cars — 55 000 m2.

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MULTI-STOREYED BUILDINGS ARE BECOMING AN INTEGRAL PART of modern cities, forming new, energetically powerful and harmonious space and setting new system of coordinates. Three towers of a large-scale project of ‘Stroyprogress’ (85, 75 and 53 storeys) will be erected near the metro station of ‘Vladykino’ at the crossing of Altufievskoye Shosse and the Forth Transport Circle. A multi-functional complex with total area 296.7 thousand sq. m will accommodate offices, a hotel, an apart-hotel, banks, restaurants, a fitness center and conference halls. The highest tower is an office building, the medium size building is a hotel and the ‘shortest’ one will accommodate conference halls and some offices. The lower part of the three-building complex will have a three level structure on the columns, which will hide all transport junctions, parking, railway, while there will be a big hanging garden on the third level. Besides, there will be an intermediate parking lot for several thousand private cars, wherefrom it will be possible to reach any point in Moscow, having left a car here. And finally, this complex will be located not far from the center of Moscow, close to Botanic Garden, which will be easily reached by small electric cars. There is the large park zone of Sokolniki nearby, and even closer the park of Timiryazev Academy and All-Russia Exibition Center. For the employees, visitors and guests of this complex it is an excellent place for work and leisure in a small island of nature in the middle of a big megacity.

ANOTHER ADVANTAGE of the complex approach to the implementation of such projects lies in the fact that the construction solves a number of problems important for a city district such as:

❚ ❚ ❚ ❚

replacement of district utilities and communication network construction of up-to-date city infrastructure compliance with all standards of urban construction preservation of the style, renewing the looks of the district.

NEW TECHNOLOGIES ENSURE a pleasing view as well as safety. For external decoration of the buildings it is planned to apply a new generation glass, which can ‘change the color’ depending on lighting. On the whole the cladding is unique: it can accumulate solar energy and, working as a solar cell, can provide the building with 30 % of the energy consumed. Besides, the complex buildings will be provided with a special protective shell, which will help to protect the structures from destruction and, as a result, to avoid casualties in case of adversity.

Business centers with unique architecture become a trade mark of a modern city, infusing it with the energy of harmony and renewal

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Care as Responsibility

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Charity and Public Facilities LLC FIRMA ‘STROYPROGRESS’ is a socially integrated company, which does not stand aloof from social problems. We take part in many important state programs and in social undertakings, such as ‘Year of Family’, ‘Year of Children’ and others.

‘STROYPROGRESS’ takes care of the

prosperity of the company and its employees, as well as of the problems of really poor people, seemingly having no relation to the Company.

It is not official orders or any formal cause, which lie in the foundation of charity, but our care about the future of the country, which we build for

WE ARE HAPPY to have received the recognition and blessing of the Church for charity activities. A number of the company managers have the awards of Russian Orthodox Church and diplomas of Holy Patriarch of Moscow and All Russia ‘For Pains to Glory of the Holy Church’.

CHARITY gives us moral satisfaction and helps to lead the Company towards new achievements. In this sense we perceive the success of our company not as a good luck, but as a fair reward for good deeds.

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CHARITY. Help to orphans, veterans of war and labour, restoration of Russian Orthodox churches are the noble goals, which to our deep belief are the foundation of the moral that guides the activities of our company as a whole and of each our employee individually. From year to year we have been building and restoring Orthodox churches in Moscow, Kurgan and Chelyabinsk Regions, in Northern Caucasus and South Ossetia. In particular, we built a home church of Saint Gracious Matrona of Moscow in the House of Veterans of the Theatre stage named after Yablochkina.

SCHOOLS, MEDICAL INSTITUTIONS AND RECREATION CENTERS built by

‘Stroyprogress’ demonstrate that people are linked with invisible ties of care for each other.

Moscow, the central part of the Russian Federation, the Urals, Caucasus and Siberia… Wherever the construction is carried out, people`s happy and grateful faces are an important criterion of success for the Company.

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Public Facilities TULA REGIONAL SPECIALIZED CHILDREN`S HOUSE № 2. Here, the

kids are in need of human kindness and of constant medical care. And they are still children! They want to rejoice, dream of gifts, like sweets. But the adults` world is much more complicated, that is why the management of our company decided to help the children on a permanent basis. Now the festivals are impatiently awaited here. ‘Stroyprogress’ is always ready to give attention to the kids and to lend a helping hand to the Children`s House. The car arriving to the Children`s House on the New Year or Christmas eve or any other suitable day, will delilver gifts, sweets and things, necessary in the household.

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IN ISTRINSKY DISTRICT the holiday hotel ‘Soyuz’ has been built in compliance with the highest international requirements to the facilities of this sort; it can be considered one of the best holiday hotels of the time in Moscow Region.

WITHIN THE FRAMEWORK OF PROGRAM ‘Chemical Weapon

Destruction in Russian Federation’ Company built polyclinic centers in Kirov and Kurgan Regions, consulting and diagnostics center in the town of Orichi, Kirov Region, water intake facilities, waterways and city water treatment network and plants as well as schools and residential houses.

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Everybody has his own idea of happiness. And altogether we all know and understand the same thing — one should work a lot and love strongly his vast land, which is yet to be happy

‘STROYPROGRESS’ ATTACHES PARTICULAR IMPORTANCE to the

development of health care. The company has reconstructed the diagnostic center of ‘Mostransgaz’ LLC in Moscow Region, pulmonology center in Moscow, has built a surgery building of South-East Railway Hospital in Voronezh, Central Clinical Hospital of Russian Railways in Moscow and many other health care facilities of similar importance.

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THE CONSTRUCTION of professional

training centre ‘Mostransgaz’ LLC in the settlement of Pervomaysky, Tambov Region, was suspended for several years. Since 2006 construction and finishing of the professional training centre was regained with the help of our Company, and since January, 2008, the erection of another facility, a five-storeyed residential building, was continued. The constriction is at full swing now.

A SHOP FOR TRACK SKELETON ASSEMBLY, built in the town of Liski

(Voronezh Region), became an event in the town`s life. Two hundred new working places improved social conditions, and the people realized that their uneasy work can be comfortable and safe. Working places are equipped with infra-red illumination and dust-arresting systems, which improve the work comfort and people`s health.

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Our key partners

Federal Agency for Industry of the Russian Federation

Moscow City Government

Administration of the Republic of North Ossetia-Alania

OJSC ‘Gazprom’

Federal Security Service (FSB RF)

‘Mostransgaz’ LLC

JSC ‘Russian Railways’

South-Western Railways

Moscow Helicopter Plant named after M.L. Mil

We take pride in enjoying the reputation of a reliable business partner and work so that tomorrow we would be able to fulfill even more complicated tasks for the customers of any level

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Our company absorbed the best experience of construction industry

References

OUR CERTIFICATES OF COMFORMITY: ❚ GOST R ISO 9001– 2001 / ISO 9001 : 2000 ❚ GOST R ISO 14001– 2007 / ISO 14001 ❚ GOST R 12.0.006–2002 / OHSAS 18001

LIST OF COMPANY`S LICENSES: ❚ License of Federal Agency on Construction, Housing and Utilities, ГС-1-99-02-27-0-77040083337017079-1 dated 27.9.2004 for construction of buildings and structures of Class I and II of responsibility including general contractor`s functions, construction of gas and oil main pipelines. ❚ License of the Department of Federal Security Service of Russia for Moscow and Moscow Region, No. 8288 dated 10.1.2006 for operations involving the use of the state secret information. ❚ License of the Ministry for Civil Defense, Emergencies and Disaster Response, No. 2/09779 dated 27.9.2004 for assembly, repair and maintenance of fire protection facilities of buildings and structures. ❚ License of Natural Resources and Environmental Protection Head Administration of the Ministry of Natural Resources of Russia for Chelyabinsk Region, CHEL No. 01450 dated 16.8.2004 for construction stone (lime stone) production in Fedorovskoye Field. ❚ License of Federal State Department ‘Territorial Information Fund for Natural Resources and Environmental Protection of the Ministry of Natural Resources of Russia for Kurgan Region, KUG No. 00564 sand and gravel rock production in the West-Central area of Beloyarskoye Field.

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LLC FIRMA STROYPROGRESS Moscow 127273 Russia 2A Altufievskoye Shosse St. Tel.: +7 (495) 363 96 46 Fax: +7 (495) 401 78 76 E-mail: info@stprogress.ru

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