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Titan Group (Omsk) 23/11/2006

Start of construction on bioethanol complex in Omsk region to be celebrated on November 22

____________________________________________________________________ Press service: press@titan-omsk.ru Official website: www.titan-omsk.ru Tel.: (495) 956–55–37

Press release November 21, 2006, Omsk

Omsk, Russia-based Titan Group to hold an official ceremony on November 22 to mark the start of the construction of its new bioethanol complex. The first pile of the complex will be driven during the ceremony. The event will be attended by high-level officials, including Russian minister of agriculture Alexei Gordeev, Omsk region governor Leonid Polezhaev and representatives from the government of the Omsk region.

Titan’s biofuel project is of great importance for the Omsk region’s economics. “This is a new step in the development of the company and the entire region. Biofuel is one of the strategic energy resources of the future and we intend to further develop our biofuel manufacture programs,” Mikhail Sutyaginsky, Director General of Titan Group, said.

The biofuel complex in the Omsk region is not the first project of its kind for Titan. Today, the Russian company produces biofuel at the Biokhim complex in Kazakhstan, which was built jointly with the Kazakhstan-based Basko company. The new biofuel complex in the Omsk region will be three times larger than the one in Kazakhstan. The Omsk complex will have an annual capacity of 110,000 tonnes of bioethanol.

Currently, foundation work is underway on the construction site. Once online, the complex will comprise a pig-breeding farm and 5 units for manufacturing bioethanol. The bioethanol units will supply their products to the Ecooil plant for further processing into ethyl tert-butyl ether (ETBE) which in turn will be exported to Europe until the Russian automotive market consumes large quantities of this environmentally friendly fuel additive. In future, Titan Group plans to begin manufacture of bioethanol-based biopolymers.

About the company:

ZAO Titan Group is a Russian petrochemical company and the largest Russian producer of MTBE. Titan is a general investor of the rubber producer OAO Omsky Kauchuk and an owner of ZAO Ecooil. In September 2006, the company jointly with TOO Basko opened the first CIS bioethanol complex, Biokhim, in Kazakhstan. The group is also building a PP integrated plant and going to commission the first Russian bioethanol complex in Western Siberia. The company was established in 1989 in Omsk.

Press Service of Titan Group For additional information, please send a request to press@titan-omsk.ru Tel.: (495) 956–55–37