18 June 2008

X5 continues to implement its strategy of franchisee program development

Amsterdam, 18 June 2008

X5 Retail Group N.V. (“X5” or the “Company”), Russia’s largest food retailer in terms of sales (LSE ticker: “FIVE”), announces that it has increased its stake in Pyaterochka store chain in Urals and signed a new franchising agreement to begin roll-out of Pyaterochka stores in Ivanovo and Kostroma regions.