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Kazakhstan Kagazy (KAG)

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Wednesday 23 April, 2008

Kazakhstan Kagazy

Kazakhstan Kagazy Announces the Results of Inde...

Kazakhstan Kagazy
                  Kazakhstan Kagazy PLC (the 'Company' or 'Kagazy') (LSE: KAG), one of
Kazakhstan's leading industrial groups, today announced that the market value of
land and warehouse facilities owned by its subsidiaries amounted to US$ 361
million as at December 31, 2007, according to an independent appraisal performed
by CBRE Scot Holland. This valuation does not include the recent acquisition of
Astana Contract or the assets of Kagazy Recycling, the paper division of the

During the first quarter of 2008, Kagazy also acquired an additional 84 hectares
of land, adjoining its Northern plot. The purchased plot was landlocked prior to
the acquisition. As a result, the purchase price amounted to US$ 262,000 per
hectare which constituted a substantial discount to the land valuation achieved
for the Northern plot of US$ 528,000 per hectare. Following this acquisition,
the total size of Kagazy's industrial park project which is planned on its
Northern plot was increased to 568 hectares. The additional land has not yet
been independently appraised.

Maksat Arip, Chief Executive Officer of Kazakhstan Kagazy PLC, commented: 'The
value of Kagazy's industrial property assets was not affected by the recent
softening of the real estate market in Kazakhstan. We launched the first phase
of the PEAK Logistics Centre which is now fully operational while the valuation
of our Northern and Southern plots has benefited from new transport links being
built by the Kazakh government. Both plots are strategically located in a newly
created industrial zone near Almaty.'

For further information, please visit or contact:

Kazakhstan Kagazy      Kazakhstan Kagazy     Shared Value Limited
Yuriy Bogday           Alessandro Manghi     Larisa Kogut-Millings
Business Development   Investor Relations    Investor Relations
Tel: +7 727 244 8790   Tel: +7 727 244 8787  Tel. +44 20 7321 5037

Kazakhstan Kagazy PLC runs Central Asia's largest producer of paper, corrugated
board and packaging products. It also operates one of the leading industrial
real estate development companies in the country through Prime Estate Activities
Kazakhstan LLP (Peak), which owns approximately 545 hectares of prime land,
strategically located in a newly created industrial zone near Almaty, for
construction of commercial warehousing and logistics infrastructure facilities.
The Group reported total assets of approximately US$ 647.5 million as at
September 30, 2007 and consolidated revenues of approximately US$ 58.9 million
for the first nine months ended September 30, 2007, according to unaudited IFRS
financial results. Kazakhstan Kagazy's securities are listed under the symbol
'KAG' on the London Stock Exchange.

This interim statement contains certain forward-looking statements with respect
to the financial condition, results, operations and businesses of Kazakhstan
Kagazy plc. These statements and forecasts involve risk and uncertainty because
they relate to events and depend upon circumstances that will occur in the
future. There are a number of factors that could cause actual results or
developments to differ materially from those expressed or implied by these
forward-looking statements and forecasts. Nothing in this interim statement
should be construed as a profit forecast.