Fire Detection and Suppression Markets in Russia Fired Up by the Progress Made in the Industrial Sector, Finds Frost & Sullivan

LONDON, July 6, 2010 - The Russian fire safety market is steadily growing, with market
participants offering increasingly sophisticated and high-quality equipment
at competitive rates. The impressive growth of the industrial sector, along
with the government's economic diversification strategies and improvement of
quality, has buttressed the domestic market's efforts to overcome effects of
the recent economic slowdown on the construction sector.

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New analysis from Frost & Sullivan (
www.buildingtechnologies.frost.com), Russian Fire Detection and Fire
Suppression Markets, finds that the market earned revenues of euro 156.3
million in 2009 and estimates this to reach euro 229.9 million in 2015.

If you are interested in more information on this study, please send an
e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

Once the global economy bounces back, an investment-friendly climate is
expected to help restore the fire suppression market to a 10-15 percent
growth rate. Also, if the government commits to modernizing the fire safety
regulations, both fire detection and fire suppression markets will experience
growth in demand, revenues and competition.

Although the fire detection market is both well-established and
saturated, the fire suppression market is not likely to advance until 2011,
due to the recovering construction and promising industrial sectors.

"Frost & Sullivan estimates moderate growth rates of 4 percent compound
annual growth rate (CAGR) for fire detection and 10 percent CAGR for fire
suppression," says Frost & Sullivan Research Analyst Emilia Jelenska. "This
is because of the uncertainty regarding the quick adoption of fire insurance
legislation, as well as the overall recovery of the Russian economy and
various sectors on which the fire safety market depends."

Both of the markets are price-sensitive, except in Moscow and St.
Petersburg, due to the concentration of wealth in these cities. Russian
products dominate the market in the provinces because they are low-priced,
while more expensive and advanced foreign products are sold in wealthier
cities.

In spite of this preference in cities, foreign original equipment
manufacturers (OEMs) are not exempt from challenges on the market. Domestic
companies maintain an advantage, as they are adept at conducting business in
Russia and offer cheaper, though sometimes less advanced, technologies. For
the growth of the total market, however, authorities must upgrade standards
and practices.

The market is encumbered by corruption, hostility towards foreign
companies and an outdated legal framework. Also, the government's marked
preference for Russian companies, joined by complexities in the certification
procedures and the non-existence of a replacement market, have hindered the
progress of foreign OEMs.

"Foreign companies seeking to conduct business in Russia must be prepared
with sufficient means, robust technology and strong local partnerships in
both detection and suppression markets," notes Jelenska. "Despite their
dependence on exchange rate fluctuations, the political and business climate
and the construction sector, they will feel buoyed by the huge potential of
the markets."

If you are interested in receiving a complimentary brochure on this
market, please send an e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, and country.

Russian Fire Detection and Fire Suppression Markets is part of the
Building Management Technologies Growth Partnership Services programme, which
also includes research in the following markets: European IFM Market:
Opportunity Analysis by Vertical Customer Sector, Building Automation
Systems: The Future Role of Open Protocols in Europe, European Energy
Efficient Lighting Markets, The European Lighting Equipments Market, among
others. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44-(0)-20-7343-8314
    M: +44-(0)-753-3017689
    E: chiara.carella@frost.com

www.frost.com

Chiara Carella of Frost & Sullivan, P: +44-(0)-20-7343-8314, M: +44-(0)-753-3017689, chiara.carella at frost.com