1 March 2007

X5 Retail Group N.V. new Employee Stock Option Program

Amsterdam, 1 March 2007

X5 Retail Group N.V., Russia’s leading grocery retailer, today announced the launch of a new employee stock option program (ESOP) for its key executives and employees. Under the terms of the plan, its beneficiaries may be granted options to acquire the economic benefit in, or receive the cash value of, a certain number of GDRs. The grant of any such option to any beneficiary, and the number of GDRs subject to such option, will be subject to certain performance criteria specific to such beneficiary being met, including, inter alia, X5 Retail Group achieving certain EBITDA, store roll-out and cost containment or reduction targets.