Almaty, Kazakhstan – April 23, 2008 – 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 Company.

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.