OREANDA-NEWS. April 14, 2010. X5 Retail Group N.V., Russia's largest retailer in terms of revenue (LSE ticker: “FIVE”), announced its retail sales and operational performance for the quarter ended 31 March 2010.

Q1 2010 Highlights

• Net retail sales increased 20% year-on-year in RUR terms to RUR 75,753 mln and 36% in USD terms to USD 2,534 mln;

• X5’s like-for-like (LFL) sales grew 7% in RUR terms year-on-year;

• Discounters continued to outperform, with Q1 LFL sales growth of 17% on the back of a balanced traffic (9%) and ticket (8%) growth;

• 27 stores added on net basis in Q1 2010, including 24 soft discounters, one supermarket and two hypermarkets;

• Net addition of selling space totaled 22 thousand square meters;

• Warehouse capacity increased by 21 thousand square meters due to expansion of an existing DC in the Central region;

• 2010 sales growth, openings and CapEx outlook as announced on 19 January 2010 reiterated. Actual top line performance will be largely dependent on inflationary trends and the timing of a recovery in the consumer spending.

Lev Khasis, X5 Retail Group CEO, commented:

"X5’s first quarter 2010 sales growth of 20% in RUR terms was led by powerful like-for-like performance at discounters on continuing strong traffic and improving average purchase size, which was partially offset by persistent pressure on supermarkets and hypermarkets. Overall, X5 achieved strong results against a backdrop of weak consumer spending and drastically lower food inflation in Russia of approximately 5% compared to 16% a year ago. We believe consumer spending will begin to show improvement towards the end of the year.

This, in combination with stepped up new store openings and stronger Paterson sales postintegration

should enable X5 to deliver on its full year objectives and benefit from future economic recovery."

1 Numbers provided in this press-release are preliminary and unaudited.