OREANDA-NEWS. April 12, 2011. X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: “FIVE”), today issued a statement by its majority shareholder Alfa-Group in response to unfounded press speculation and rumours of merger plans involving X5.

Mikhail Fridman, Chairman of the Supervisory Board of Alfa-Group, commented: "We have stated many times that Alfa-Group is a long-term investor in X5 Retail Group. We see tremendous growth potential for the Company and strongly support its focus on development in the still immature and fragmented Russian retail market. Press speculation about merging X5 with international retailers is unfounded."

X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format. In 2010 X5 acquired Kopeyka discounter chain.

As at 31 March 2011, X5 had 2,545 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 1,472 soft discount stores, 303 supermarkets, 71 hypermarkets, 47 convenience stores and 652 acquired Kopeyka stores.

As at 31 March 2011, X5's franchisees operated 690 stores across Russia.

For the first nine months 2010, net sales totaled USD 7,798 mln, EBITDA reached USD 593 mln, and net profit amounted to USD 183 mln. For the full year 2010, net retail sales totaled USD 11,248 mln.

X5 Shareholder structure is as follows: Alfa Group - 47.9%, founders of Pyaterochka - 19.9%, X5 Management - 1.8%, treasury shares - 0.1%, free float - 30.3%.