14 December 2007

X5 RETAIL GROUP N.V. signs an agreement to acquire STRANA GERKULESIA retail chain in Moscow region

Amsterdam, 14 December 2007

X5 Retail Group N.V., Russia’s largest food retailer in terms of sales (LSE ticker: “FIVE”), announced today that it has signed an agreement to acquire 100% of the business and assets of the Strana Gerkulesia (“Land of Hercules”) retail chain operating in the City of Moscow and the Moscow and Tver regions, for a total consideration of USD 65 million, including debt. The Company plans to close the deal by the end of 2007.