Almaty, Kazakhstan – April 14, 2008 – Kazakhstan Kagazy PLC (the “Company” or “Kagazy”) (LSE: KAG), one of Kazakhstan’s leading industrial groups, today announced the acquisition of a 90% stake in Astana Contract JSC, the largest logistics and warehouse operator in Central Asia, for a total consideration of US$ 57.6 million.

The transaction is being effected by the purchase of a 55% stake from principal shareholders and the acquisition of new shares which represent 35% of the enlarged share capital of Astana Contract. The payment to shareholders is being made in two tranches with US$ 3.6 million paid upfront and US$ 32 million being paid on a deferred basis after two years. New shares are being acquired for US$ 22 million. The remaining 10% stake will be bought by Kagazy for US$ 6.4 million after two years, subject to receiving the approval of the State Development Bank of Kazakhstan.