Based on the materials from the official web-site of the company.

On December 4, 2006 the Supreme Arbitration Court of the Russian Federation held its session in which it was supposed to consider a reconciliation agreement signed between the parties in connection with the dispute between the Russian Federation and the Republic of Sakha (Yakutia) concerning the assets of the former PNO (Production and Scientific Association) Yakutalmaz.

On the results of the session the court issued a ruling to postpone the hearings of the case until December 20, 2006.

At the same time some media interpreted the stand of ALROSA representatives at the hearing interpreted as aiming to delay signing the reconciliation agreement.

In its pronouncement re case No. 7305/06 of 04.12.2006 the RF Supreme Arbitration Court directly specified that the decision to postpone the hearings was taken on the basis of the application filed by the parties in the arbitration.

Under Article 44 of the RF Procedural Code «The parties in an arbitration are the plaintiff and the defendant». The plaintiff in this case is the Russian Federation, and the defendant is the Republic of Sakha (Yakutia). ALROSA has been involved in the case as third party without any independent claims related to the subject of the matter.

Therefore, the allegations that the stand of ALROSA representatives in court was aimed at disrupting amicable settlement contradicts the statement by the RF Supreme Arbitration Court, distort the actual state of things and mislead ALROSA shareholders.