Aurora Russia Limited (the “Company” or “Aurora Russia”), the AIM-quoted investment vehicle established to make equity or equity-related investments in small and mid-sized private companies in Russia, announces that it will invest £12.5 million to launch Kreditmart, a mortgage and consumer finance brokerage.  Following completion of the deal, Aurora Russia will own 100% of Kreditmart, however 15% of the company’s shares will be reserved for an employee stock option plan.  Kreditmart is expected to roll-out 10 loan shops covering seven regions in Russia by the end of 2007 as well as building a book of mortgage assets.

Kreditmart will be a mortgage and consumer finance company that acts as a broker distributing financial services products in Russia through a network of loan shops, internet, bank partners and real estate agents. Aurora Russia has put together a management team with a track record for building similar operations in the mortgage and consumer finance sectors, including extensive experience from DeltaCredit and GE DeltaBank.

James Cook, Director of Aurora Russia Limited and the former Chairman and CEO of GE Consumer Finance in Russia, will serve as Chairman. Cook’s previous track record includes the successful launch and roll-out of both DeltaCredit (sold to Societe Generale in 2005) and DeltaBank (sold to GE Consumer Finance in 2004).  DeltaCredit was the pioneer in residential mortgage lending in Russia and is one of the leading banks for mortgage origination in Russia and GE DeltaBank is the leading provider of VISA credit cards in Russia.

Kreditmart’s management includes Nicholay Korchagin, formerly of GE Consumer Finance (DeltaBank) and DeltaCredit where over the past six years he led the development and roll-out of their mortgage product lines.  Korchagin has assumed the post of General Director of Kreditmart. Also joining the team will be senior management personnel from GE Consumer Finance (DeltaBank) and DeltaCredit.