OREANDA-NEWS. November 22, 2007. JSC “The Seventh Continent” (further referred to as the Company) announces unaudited IFRS results for the 3Q and 9M 2007.

Total sales in the 3Q 2007 increased 35% YoY and reached USD 295,3 mn. 9M 2007 sales amounted for USD 888,3 mn. and increased 33% YoY. The gross profit in 3Q 2007 has grown 35% and amounted for USD 92,3 mn. with gross profit margin at the level of 31,3%. 9M 2007 gross profit grew by 32% YoY and reached USD 274,8 mn. with 30,9% gross profit margin.

In the 3Q the Company’s EBITDA without the consolidation of the financial results of the LLC “Bank Finservice”[1] results reached USD 31,1 mn. and EBITDA margin comprised 10,6%. EBITDA including the financial results of the LLC “Bank Finservice” reached USD 26,4 mn. and EBITDA margin comprised 8,9%. EBITDA for 9M 2007 without the consolidation of the bank grew to USD 94,7 mn. and the EBITDA margin was 10,7%. 9M 2007 EBITDA including the financial results of the LLC “Bank Finservice” reached USD 84,1 mn. and EBITDA margin was 9,5%.

Net income for the 3Q 2007 reached USD 16,2 mn. with the net income margin of 5,5% (including the LLC “Bank Finservice”). Net income for the 9M 2007 amounted USD 67,4 mn. with 7,6% net income margin. 3Q net income has grown 15% YoY and 9M 2007 net income[2] has grown 47% YoY.

As of the end of September 2007 the Company managed 125 stores, including 119 supermarkets and 6 hypermarkets.

As of the end of September 2007 the selling space of the Company’s chain of stores under the brands “Seventh Continent”, “Nash Hypermarket” (“Our Hypermarket”) and “Prostore” accounts for 145 th. sq. m. and for the year passed has increased by 12%.

The average ticket in the Company’s chain of stores for the 3Q 2007 has grown 21% compared to the similar period of 2006 and reached $13.1 USD.

Number of customers in the Company’s chain of stores has reached 24.8 mn. in 3Q 2007 and increased 11% compared to the same period of 2006. Number of customers for 9M 2007 has increased 12% YoY and amounted 74.7 mn.

3Q 2007 Like-For-Like sales (LFL)[3] increased 18% in dollar terms and 12.2% in ruble terms. 9M 2007 Like-For-Like sales (LFL) were up 16.8% in dollar terms and 10.3% in ruble terms.

On July 31, 2007 the Company has signed the USD 36 mn. facility Loan agreement with the Black Sea Trade and Development Bank (BSTDB) with 3-years maturity. The Loan terms include semi-annual interest periods and the grace period. The interest rate is established as 6-month LIBOR + 1.5%.

On 27th of September 2007 the Company has repaid to Dresdner Bank AG London Branch USD 31.8 mn. of the rest of the principal loan amount. The 2-year facility in the total amount of USD 90 mn. with interest rate of 7.25% per annum was acquired in September 2005. On 27 th of September 2006 the Company has repaid the first part of principal loan in the amount of USD 58.2 mn.