IBS Group Receives USD 20 Million Convertible Loan From the European Bank for Reconstruction and Development

MOSCOW, October 26, 2010 - IBS Group Holding Limited ("IBS Group" or "the Group") announces its USD
20 Million convertible loan deal with the European Bank for Reconstruction
and Development ("EBRD" or "the Bank") in line with its strategy to diversify
instruments and sources of financing and in order to reduce borrowing costs.

The loan period will be three and a half years. Loan interest is 6-months
LIBOR plus 3% p.a.

The loan, other than deferred interest, may be converted into 700,000 to
900,000 newly issued ordinary shares of the Company, subject to limited
blocking rights established for the Company and EBRD. If the loan is not
converted, the Company will pay deferred interest at a rate of 9%.

As result, the Company will be able to substantially increase a portion
of long-term financing in its credit portfolio and lower its average
effective cost of funding. As of March 31st, 2010 the Group's average
effective cost of funding was over 10%. By December 31st, 2010, the funding
utilization should result in reducing the average effective cost of funding
to approximately 6.8%, based on the Group's management forecast.

One part of the funds received will be earmarked for the expansion of the
IBS Academy, which provides unique hi-tech education programs to train young
professionals in areas of specialisation that are most in demand by the IT
market. The IBS Academy project is carried out by IBS IT Services in
cooperation with the Moscow Institute of Physics and Technology and the
Moscow Institute of Steel and Alloys, which are among Russia's top higher
education institutions.

The loan funds will also supplement the Group's capital expenditure
program for 2010-2011 financial years including financing of the software
development business.

The EBRD is a recognized international financial institution that
supports commercial projects in 29 countries from central Europe to central
Asia. The Bank promotes entrepreneurship and fosters transition towards open
and democratic market economies. The EBRD is the largest direct investor in
the region and it also attracts substantial funds from co-investors.
Companies requesting an EBRD loan are usually subject to Bank's rigorous due
diligence in order to ensure compliance with the EBRD's high lending
standards, including sound corporate governance.

"This transaction is part of the EBRD's commitment to support Russia's
high-tech sector which holds the key to the modernization and diversification
of the country's economy and we are proud to work with such a well-known
Russian IT provider," said Alain Pilloux, Head of the EBRD's Telecoms team
and Managing Director for Industry and Commerce.

Commenting on the EBRD deal, Anatoly Karachinsky, President & CEO of IBS
Group said:

"We are very glad to be in this deal with EBRD, a highly respected
international institution. This deal is important for us in two respects.
Firstly, we now have access to a source of financing on much better terms
than those offered by local funding sources. This will enable us to replace
the existing short-term loans, further mitigate financial risks and secure
our business growth expectations for 2011 - 2012. Secondly, given the Bank's
rigorous selection process for such projects, we believe this deal
demonstrates that the Russian technology business in general and our company
in particular are viewed as reliable and trustworthy partners."

About EBRD

The EBRD, owned by 61 countries and two intergovernmental institutions,
is supporting the development of market economies and democracies in
countries from central Europe to central Asia.

About IBS Group

IBS Group is the leading Russian IT company. Through two principal
subsidiaries, IBS IT Services and Luxoft, it provides a wide variety of
information technology services, such as business and IT consulting, business
applications implementation, IT outsourcing and software development. IBS
Group is headquartered in Russia and has business operations in Russia,
Canada, Germany, Romania, Poland, Switzerland, the UK, Ukraine, the USA,
Vietnam and Singapore. IBS Group employs more than 6,000 people worldwide. In
2009 financial year, IBS Group reported US GAAP revenues of $505,1m.

IBS Group's Global Depositary Receipts (GDRs) are listed on the Open
Market at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters:
IBSGq.DE). IBS Group is majority-owned by management; institutional investors
hold 34% of the Group's share capital.

For more information about IBS Group:

- Please visit www.ibsgr.com.

- Please contact:

    Gamid Kostoev
    Director, Corporate Communications
    Tel.    +7(495)967-8080
    Mobile  +7(903)720-6078
    Fax     +7(495)967-8081
    E-mail  gkostoev@ibs.ru

    Dmitry Ivanov
    Director, Investor Relations
    Tel.    +7(495)967-8087
    Mobile  +7(916)618-4034
    Fax     +7(495)967-8099
    E-mail  dvivanov@ibs.ru

Gamid Kostoev, Director, Corporate Communications, Tel. +7(495)967-8080, Mobile +7(903)720-6078, Fax +7(495)967-8081, E-mail gkostoev at ibs.ru; Dmitry Ivanov, Director, Investor Relations, Tel. +7(495)967-8087, Mobile +7(916)618-4034, Fax +7(495)967-8099, E-mail dvivanov at ibs.ru