OREANDA-NEWS. December 30, 2010. X5 Retail Group N.V., Russia's largest food retailer in terms of sales (LSE ticker: “FIVE”), announced today that it has completed the acquisition of Kopeyka discounter chain. In accordance with the agreement, X5 purchased 100% of the business and assets of Kopeyka for a price of RUR 51.5 billion (enterprise value) including assumption of Kopeyka’s net debt of no more than RUR 16.5 billion.

Kopeyka is an excellent strategic and operational fit and offers attractive value for X5’s shareholders. This acquisition gives X5 the number one position in discounters in Russia, building on Pyaterochka’s organic success and providing quality locations in Moscow and Moscow Region and other key geographic markets with strong demographics for this format.

X5 expects to realize significant synergies from the rebranding and operational integration of Kopeyka stores to raise performance towards X5 format levels, with strong upside potential in sales density, profitability and cash flow generation.

X5 received all necessary approvals for the transaction, including approval of the Company’s Supervisory Board and consent from the Russian Federal Anti-Monopoly Service (FAS). In accordance with the FAS decisions of 09.09.2010 and 17.09.2010, the subsidiaries of OJSC “TD “Kopeyka” ceased trading activity at 27 stores before completion of the transaction and are considering proposals from other retailers to operate at these locations.

X5 will convert Kopeyka stores to Pyaterochka over a two-year period to deliver outstanding

value for our customers and shareholders.