Unaudited financial results for the nine Months Ended 30 September 2010

November 30, 2010

Highlights

· Strong organic volume growth across all segments, delivering a solid financial performance

· Revenues increased 20% to $877.7 million from $730.1 million for the nine months of 2009, and increased 12% on a rouble currency basis

· Adjusted EBITDA* increased 21% to $159.5 million from $132.1 million for the nine months of 2009, and increased 12% on a rouble currency basis

· Adjusted EBITDA* margin was flat at 18%

· Gross profit increased 16% to $235.9 million from $202.5 million for the nine months of 2009, and increased 8% on a rouble currency basis

· Group gross margin was a robust 27%

· Net income increased 26% to $104.4 million from $82.9 million for the nine months of 2009, and increased 17% on a rouble currency basis

· As of 30 September 2010 Net debt** decreased 6%, to $417.0 million.

· The effective cost of debt decreased to 3%.

Business Developments

· Cherkizovo Group commenced construction of three new greenfield pork farms in the Tambov, Voronezh and Lipetsk regions with a combined capacity of 37,500 live-weight tonnes. The new multi-site complexes will become operational during 2011 and 2012 and full capacity is expected to be reached by the end of 2012. This will increase the Group’s overall capacity to an estimated 153,000 tonnes a year.

· Cherkizovo Group acquired a meat processing plant, located in the Kaliningrad region for US$4.1 million. It will focus on delicacy products and serve as a resource base for the Group’s meat processing segment. The plant’s location entitles it to preferential customs status.

· Cherkizovo Group acquired a 100% controlling interest in the Zarechnaya poultry facility for a total consideration of US$5.2 million. The site, located in the Penza region, will be integrated into the existing Penza capacity increase project, thereby further increasing capacity at the cluster.

· Subsequently, Cherkizovo Group completed the acquisition of a controlling interest in two greenfield pork production farms located in the Penza and Lipetsk regions of Central Russia. Since these acquisitions are transactions between entities under common control, their financial and operational results will be combined into Group operations in a manner similar to a pooling of interest for the full year 2010. Cherkizovo Group’s historical financial information will also be restated to include the acquired entities for all periods presented.

· On 10 November 2010 Cherkizovo Group successfully placed 3 billion roubles in 3-year bonds with a coupon rate of 8.25%. The funds will be allocated to refinance short-term loans, fund capital expenditure and to other investment needs.

Sergey Mikhailov, Chief Executive Officer of Cherkizovo Group, said:

“During the first nine months of 2010 we have delivered a solid performance, with a 20% increase in revenue and growth in Adjusted EBITDA of 21%. This has resulted in a healthy 18% Adjusted EBITDA margin. However, our results were affected by the tighter pricing environment in the poultry and pork divisions, particularly towards the end of the third quarter, and we expect pricing trends to remain challenging throughout the fourth quarter of 2010 and rolling over into the first quarter of 2011.

In the poultry division, profitability was at record level of 30% Gross Margin, and a 22% Adjusted EBITDA margin. We have made solid progress at our two step capacity-increase projects in Bryansk and Penza and our recent acquisition of the Zarechnaya facility in the Penza region will enable us to achieve targeted production volumes ahead of plan.

The pork division has enjoyed significant growth and we anticipate this will be further supported in the fourth quarter by the integration of the two new farms. Moreover, we are pleased that construction has commenced on three greenfield complexes in the Tambov, Voronezh and Lipetsk regions which are expected to become operational during 2011and 2012, adding some 37,500 tonnes of capacity. By the end of 2012 our production volumes will have grown to approximately 153,000 tonnes, further strengthening our market leadership in this high-margin business and positively affecting our overall performance.

Meat processing continues to see rising demand as consumer confidence improves. We have seen some very positive results, with an increase in sales volumes and sustained profitability.

Going forward, we anticipate a rather challenging year in terms of grain supplies globally, particularly in Russia. At the Group level, we have already secured approximately half of our grain stock needs for 2011, and are actively continuing to secure further grain supplies. This year, inflation for meat products in Russia has been relatively low compared to other consumer food products, despite the sharp increase in grain costs. We are now witnessing a slight oversupply of meat in the market, as less efficient producers and individual households are slaughtering livestock due to grain shortage. Combined with an increased share of poultry imports in the second half of this year, this puts a downward pressure on selling prices, especially for poultry sales. This may continue into the beginning of 2011, as producers will accumulate stocks. In the medium term reduction of livestock will potentially lead to more aggressive meat price inflation in 2011.

As a recent development, we welcome the Government’s recent announcement to decrease import quotas for 2011. However, with the anticipated growth in domestic production, the market is expected to reach self-sufficiently levels towards the end of 2011 and further quota reductions may be required.”

***

Cherkizovo Group OJSC is one of the largest Russian meat producers. Its business is organized in three segments: poultry production (four full-cycle poultry production clusters), pork production (five pork production complexes), and meat processing (seven meat processing plants). Also, the Group produces its own fodder (2 fodder mills), and sells its products through its own three trading houses. Cherkizovo Group enjoys dominant market positions, and its brand portfolio includes leading brands, such as Petelinka, Chicken Kingdom, Cherkizovsky, and Five Stars.

Chief Executive’s Review

Financial Overview

The table below summarizes the Group’s strong performance on a rouble currency basis for the 9 months of 2010:

RUR, mln (unaudited)

9M2010

9M2009

Change

Sales

26,555.1

23,714.4

12%

Gross Profit

7,136.1

6,577.8

8%

Gross margin, %

27%

28%

Operating Expenses

3,398.8

3,207.4

6%

Operating Income

3,737.3

3,370.4

11%

Operating Income Margin, %

14%

14%

Net Income

3,158.5

2,693.0

17%

Adjusted EBITDA

4,825.1

4,291.4

12%

EBITDA margin, %

18%

18%

On a reported currency basis sales increased by 20% to US$877.7 million (9M2009: US$730.1 million) driven by steady organic growth across all segments. Gross profit increased 16% to US$235.9 million (9M2009: US$202.5 million). Operating expenses as a percentage of sales have decreased to 13% from 14% for the nine months of 2009. Net income increased 26% to $104.4 million (9M2009: US$82.9 million).

Adjusted EBITDA* increased 21% to US$159.5 million (9M2009: US$132.1 million) and adjusted EBITDA* margin was flat at 18%, reflecting a robust operating performance by the Group.

Poultry Division

Sales volumes in the poultry division for the first nine months of 2010 increased by 6% to 146,830 tonnes of slaughter weight compared to approximately 138,920 tonnes for the first nine months of 2009.

Prices for Cherkizovo poultry sales increased by 3% in dollar terms from $2.27 per kg for the first nine months of 2009, to $2.33 per kg for the first nine months of 2010 (excluding VAT)*. Prices in rouble terms decreased by 4% from 73.88 roubles per kg for the first nine months of 2009 to 70.56 roubles per kg for the first nine months of 2010 (excluding VAT).

Total sales in the Poultry division increased 9% to US$375.2 million (9M2009: US$345.2 million). Gross Profit decreased to US$110.9 million (9M2009: US$120.2 million), divisional Gross Margin was 30% (9M2009: 35%), mostly due to lower selling prices in the period, as well as rising costs.

Operating expenses as a percentage of sales were 12%. Operating income of the division decreased by 18% to US$64.1 million (9M2009: US$78.4 million), and operating margin was 17%. Profit in the Poultry division decreased by 14% to US$59.2 million (9M2009: US$69.1 million).

Adjusted EBITDA* decreased 12% to US$82.2 million (9M2009: US$93.3 million), while Adjusted EBITDA* margin in the Poultry division was 22% for the nine months of 2010.

Pork Division

Sales volumes in the pork division increased by an impressive 52% to approximately 53,900 tonnes of live weight over the period, compared to approximately 35,570 tonnes for the first nine months of 2009. This growth reflected increased production as new farms start to achieve their forecasted target levels of output.

Prices increased by 4% in dollar terms from $2.32 per kg of live weight for the first nine months of 2009 to $2.41 per kg for the first nine months of 2010 (excluding VAT)*. In rouble terms prices decreased by 3% from an unusually high level of 75.38 roubles per kg for the first nine months of 2009 to 72.82 roubles per kg for the first nine months of 2010 (excluding VAT).

Total sales in the Pork division increased by 79% to US$162.6 million (9M2009: US$91.0 million). Gross Profit increased 70% to US$60.2 million (9M2009: US$35.5 million) while Gross Margin was 37%, partially caused by pork prices coming under pressure in the period. This pricing pressure combined with an increased share of the division’s sales coming from trading activity with related-party pork farms. These are accounted for under ‘Other Sales’ in the key data and figures disclosure in Appendix 1, and reflect activity in anticipation of Cherkizovo’s acquisition of two Greenfield pork production farms located in the Penza and Lipetsk regions. Pork production enjoys significantly higher gross margins than trading operations, and this mix effect is expected to be short-term until production operations will be integrated into the Group under the contemplated acquisition. Excluding Other Sales, the division’s Gross Margin was 45%. The acquisition was completed in November 2010. Since these acquisitions are transactions between entities under common control, their financial and operational results will be combined into Group operations in a manner similar to a pooling of interest for the full year 2010. Group Cherkizovo’s historical financial information will also be restated to include the acquired entities for all periods presented.

Operating Expenses as a percentage of sales were flat at 6%. The division generated Operating Income of US$50.3 million (9M2009: US$29.8 million), while Operating Margin was 31% (9M2009: 33%). Profit in the Pork division increased by 76% to US$46.7 million (9M2009: US$26.5 million).

Adjusted EBITDA* generated by the division increased 70% to US$59.7 million (9M2009: US$35.1 million), and Adjusted EBITDA* Margin was 37% (9M2009: 39%). Without the sales of related-party pork farms, Adjusted EBITDA* Margin would have been 45%.

Meat Processing Division

The Company has witnessed a recovery in demand for the division’s products in 2010. Sales volumes in the meat processing segment increased by 8% in the period to approximately 102,870 tonnes from approximately 95,370 tonnes for the first nine months of 2009.

Prices in dollar terms increased by 10% from $3.47 for the first nine months of 2009 per kg to $3.82 per kg for the first nine months of 2010 (excluding VAT)*. Average prices in roubles increased by 2% from 112.74 roubles for the nine months of 2009 to 115.52 roubles for the first nine months of 2010 (excluding VAT).

Total sales in the Meat Processing division increased 15% to US$379.0 million (9M2009: US$328.7 million). Divisional Gross Profit increased 38% to US$64.9 million (9M2009: US$47.0 million), while Gross Margin increased from 14% to 17%, due to lower prices of purchased meat and increased operational efficiency. Operating expenses as a percentage of sales decreased to 12% from 13% for the nine months of 2009. Division profit was US$14.0 million as opposed to a division loss of $5.8 million for the nine months of 2009.

Adjusted EBITDA* for the division increased 130% to US$27.8 million (9M2009: US$12.1 million), and Adjusted EBITDA* margin increased to 7% (9M2009: 4%).

Financial Position

The Group’s Capital Expenditure on property, plant and equipment and maintenance amounted to US$104.1 million for the first nine months of 2010. Of that, US$60.5 million was invested into the Poultry division, primarily into the capacity increase projects at the Bryansk and Penza clusters; US$37.7 was invested into the Pork division, and US$2.8 million was invested into the Meat Processing division.

Net Debt** at the end of nine months of 2010 was US$417.0 million or RUR12,679.5 million. Total Debt was at US$470.6 million or RUR14,308.4 million. Of Total Debt, long-term debt was approximately US$356,0 million or 76% of the debt portfolio. Short-term debt was US$114,6 million, or 24% of the portfolio. Cost of Debt for the nine months of 2010 was 3%. The portion of subsidized debt in the portfolio was 90%, improving from 86% as of 31 December 2009. Cash and cash equivalents totalled US$53,6 million at 30 September 2010.

Subsidies

The Group received interest reimbursement of US$27.8 million which offset interest expense.

Total interest before subsidy was US$39.2 million.

Outlook

Cherkizovo has made solid progress in the first nine months of 2010 in its operational and financial results, though performance was affected by a tighter pricing environment compared to last year and unusual weather conditions which have somewhat affected operational results and costs.

For the remaining period of 2010, we have a positive view on Russian consumption trends as positive volume-wise, although the pricing environment has been and remains tight, despite rising input costs. The rising grain prices and shortage in grain supply are expected to continue until visibility on 2011 harvest, and we may reasonably expect meat price inflation in 2011, as producers will seek to transfer cost increases on to the consumer, which has not yet happened in the third quarter of 2010. Cherkizovo also welcomes the significant reduction in imports, as this presents excellent opportunities for Cherkizovo as the leading domestic producer. The Company will continue to benefit from investments already made to increase production capacity, particularly in our higher margin Pork and Poultry businesses, and from recovery trends in Meat Processing. Overall, we remain confident that the Group will continue to enhance value and deliver against its strategy going forward.

*Non-GAAP financial measures. This press release includes financial information prepared in accordance with accounting principles generally accepted in the United States of America, or US GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with US GAAP.

Adjusted Earnings before Interest, Income Tax, Depreciation and Amortization (“Adjusted EBITDA”). Adjusted EBITDA represents income before interest, income tax and non-controlling interest, adjusted for certain other items as shown in the reconciliation in Appendix 1. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of our net revenues. Our adjusted EBITDA may not be similar to adjusted EBITDA measures of other companies; is not a measurement under accounting principles generally accepted in the United States and should be considered in addition to, but not as a substitute for, the information contained in our consolidated statement of operations. We believe that adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our adjusted EBITDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within our industry. Adjusted EBITDA is reconciled to our consolidated statements of operations in Appendix 1.

** Net debt is calculated as total debt minus cash and cash equivalents

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid market change in our industry, as well as many other risks specifically related to the Group and its operations.

* For price calculation in dollar terms the Company used the average exchange rate for the nine months of 2009 of 32.4814 roubles per 1 US dollar, for the nine months of 2010 the average rate was 30.2538 roubles per 1 US dollar.