AFI Development PLC announced that, following the recommendation of the Nomination Committee, its Board of Directors has appointed Mr. Lev Leviev, currently Non-Executive Director and Chairman, to the position of Executive Chairman of the company. In his new role Mr. Leviev shall provide strategic leadership and lead key negotiations with the Moscow Authorities, with other government authorities in regions of AFI Development operations and with its counterparties in transactions of strategic importance. The appointment of Mr. Leviev will not change the functions and responsibilities of Executive Director of the company and CEO of the company's main Russian operating subsidiary, OOO AFI RUS, Mr. Mark Groysman.

Mr. Groysman shall remain responsible for ongoing operations of AFI Development, while Mr. Leviev will concentrate on managing government relations of AFI Development and leading strategic transactions.