Press-release

NCSP Shareholders Approved Acquisition of Primorsk Trade Port

17 December 2010

PJSC Novorossiysk Commercial Sea Port Group (LSE: NCSP, RTS and MICEX: NMTP) hereby reports the results of Extraordinary General Meeting of shareholders held on 16 December 2010 in the form of absentee voting.

The only item on the agenda of the EGM was the approval of the «major transaction» (a series of interrelated transactions) to be executed by PJSC NCSP, as follows:

·        Proposed acquisition of 100% of participation interest in Primorsk Trade Port LLC from Omirico Limited, the sole shareholder of Primorsk Trade Port LLC, and

·        a bank debt financing to be obtained NCSP in order to fund a portion of the purchase price payable for acquisition of 100% of participation interest in Primorsk Trade Port LLC.

Only disinterested shareholders, who in total own 49.9% of the total number of NCSP’s outstanding shares (9 610 572 780 out of 19 259 815 400) were entitled to vote on the EGM agenda. NOVOPORT HOLDING LTD, the owner of 50.1% NCSP’s outstanding shares, was not entitled to vote being an interested party to the Transaction.

The number of votes cast on the meeting’s agenda only item totaled 7 139 212 307 of PJSC NCSP voting shares, which represent 74.28% of the total number of NCSP outstanding shares entitled to vote on the EGM agenda. According to the Minutes of the EGM №34-OSA NMTP dated 17 December 2010, on the only item of the EGM agenda the shareholders cast 5 193 512 050 votes «FOR», 1 156 994 513 votes «AGAINST», 785 144 545 votes «ABSTAIN», and 3 561 199 votes were not accounted for due to the voting ballots being invalid.

Commenting on the EGM results CEO of PJSC NCSP Igor Vilinov said: «I am really pleased by the fact that 72.8% of all disinterested NCSP shareholders who voted at the EGM have cast their votes to approve the proposed acquisition of 100% of participation interest in Primorsk Trade Port LLC, partially funded by bank debt financing».

The following resolution was adopted by the shareholders by the majority of votes[i]:

To approve a major transaction (a series of interrelated transactions) to acquire 100% of participation interest in the charter capital of LLC Primorsk Trade Port funded through bank debt financing (the «Transaction»), the price (cash value) of which was determined by the Board of Directors of PJSC NCSP as $2 153 000 000, which exceeds 50% of the balance sheet asset value of the Company as of the most recent reporting date, which also constitutes an interested party transaction due to the interest of the Company’s shareholder Novoport Holding Ltd, incorporated and existing under the laws of British Virgin Islands, holding more than 20% of the Company’s voting shares, and governed by the following agreements:

a) Sale and Purchase Agreement to acquire 100% of participation interest in the charter capital of LLC Primorsk Trade Port between the Company as the Buyer and Omirico Limited, incorporated and existing under the laws of the Republic of Cyprus, as the Seller, and Kadina Limited, incorporated and existing under the laws of British Virgin Islands, as a party;

b) Loan Facility Agreement between PJSC NCSP as the Borrower and OAO Sberbank as the winner of the open tender to determine a financial organization to provide a loan facility in the amount not exceeding $1 950 000 000[ii]..

To authorize the General Director of PJSC NCSP to perform all actions required to implement the sale and Purchase Agreement and the Loan Facility Agreement, on behalf of the Company, including:

a) determining and approving other terms of the Sale and Purchase Agreement and the Loan Facility Agreement and signing of the Sale and Purchase Agreement and the Loan Facility Agreement, including amendments, extensions, and supplements thereto, and any other documents related to the Sale and Purchase Agreement and the Loan Facility Agreement; and

b) any other actions required to implement the Transaction.

About NCSP Group

Novorossiysk Commercial Sea Port is the largest Russian port operator in terms of cargo turnover. Group’s consolidated cargo turnover in 2009 totaled 86.5 million tons. Consolidated revenue to IFRS in 2009 totaled $675.1 million and net profit $252.2 million. NCSP shares are traded on Russia’s RTS and MICEX exchanges (NMTP) and on the London Stock Exchange (NCSP) in the form of GDRs (1 GDR representing 75 shares). NCSP Group includes the following stevedore companies: PJSC NCSP, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC NCSP Fleet, OJSC Novoroslesexport, OJSC IPP, and Baltic Stevedoring Company Ltd.

For more information please contact: Tel.: +7 (495) 783-5434; IR@nmtp.info

  Resolution of the Extraordinary General Meeting of Shareholders of PJSC NCSP as of 16 December 2010