Midland Group New Player in Formula One

TORONTO, Canada, October 8 -- Midland Group, a privately owned international trading and investment-holding organization announced today the Groups involvement in Formula One racing. The Team - to be known as Midland F1 - will make its debut at the 2006 Australian Grand Prix.

Midland's co-founder and chairman Alexander Shnaider, 36, about the reasons for the Group's participation in Formula One: "For a global acting business conglomerate the search for a global communication platform is natural. Our research into coverage of different sports showed that only three events met our criteria for international exploitation: The Olympic Games, World Cup Soccer and Formula One. As the two others are quadrennial Formula One was the natural fit. Midland's involvement is market driven. And so is the determination to build a team from scratch as opposed to buying an existing one. Midland Group is an investment company, and by creating a new team we are creating value."

Mr. Shnaider already held extensive talks with Formula One supremo Bernie Ecclestone and found full support of his plans. "We have exchanged ideas on various subjects."

Whether his Russian heritage - Mr. Shnaider, a naturalized Canadian citizen was born in St. Petersburg but moved to the West as an infant - will have influence on the team's spirit he states: "Of course the team will have a Russian flavour and in time we hope to bring a Russian driver into Formula One. Midland is deeply rooted in Russia and the Commonwealth of Independent States and we are certain that, via Formula One, mutually beneficial relationships and businesses can be created as most international companies recognize that they must enter these markets."

As to the question of a Russian Grand Prix Mr. Shnaider argues: "Russia would get very positive exposure from staging a Formula One race, and it would be a pleasure for me to be instrumental in making that happen."

About Formula One's substantial expense factor - a reason that led Ford, the number 2 car manufacturer to retreat from team ownership - he appears impressively unconcerned: "Midland is prepared to fund the development of the team entirely, but our unique position will help us attract sponsors"

Mr. Shnaider shows no ambitions to run the team himself. "I will be active in the build-up but once the team is operating I will delegate the task to a team principal."

About Midland Group:

Founded in 1994, Midland is a dynamic, innovative group, active in industries as diverse as commodities trading, steel manufacturing, transportation, construction and agriculture. Enterprises owned by Midland and its partners employ more than 50,000 people globally. The Midland Group operates in the emerging markets of the Commonwealth of Independent States (CIS), Eastern Europe, Turkey, China and the Far East. Marketing and administration are carried out in Switzerland, Canada and Great Britain. The Group's operations are global with representative offices and agents in 34 countries. Midland's most prestigious recent project is a striking state-of-the-art super luxury five star hotel and residential complex in the business district of Toronto in association with the Trump Organization.