Ruric applies for company reorganization and will present a new long-term financing solution

The board of directors of real estate company Ruric - whose shares have today, Monday, been temporarily suspended - has decided to withdraw the offer to holders of bond loans 2 and 3, which was announced on October 6 and October 22, 2009 (the "Offer"). The required majority was not reached among the bond holders.

The board has also decided to submit an application for company reorganization in accordance with the Swedish Company Reorganization Act at the District Court of Stockholm. The company will continue as normal with its operations while, together with an appointed administrator, it prepares a proposal for reorganisation and financing of the company. The reorganization proposal will contain a new offer to the bond holders and will probably be combined with an issue of shares with preferential rights for existing shareholders. Also, the proposal might contain sale of assets.

"We have considered the views of the bond holders and will therefore take this into account going forward. The Board views the reorganization as being the best alternative for a long-term solution to secure the values in the company," says Nils Nilsson, chairman of Ruric.

Ruric has proposed that the District Court of Stockholm appoint lawyer Roland Sundqvist of law firm G Grönbergs Advokatbyrå AB as administrator. The wording of the proposal will be presented in the reorganization plan that the administrator will produce within three weeks from the court decision.

Russian Real Estate Investment Company AB (publ)

For further information, please contact:

Craig Anderson, CEO
Tel: +7 812 703 35 50
E-mail: info@ruric.com

Nils Nilsson, Chairman
Tel: +41 22 534 95 42
E-mail: nils@ruric.com