25 June 2008

X5 signs agreement to complete acquisition of Karusel hypermarket chain

Amsterdam, 25 June 2008

X5 Retail Group N.V. (“X5” or the “Company”), Russia’s largest food retailer in terms of sales (LSE ticker: “FIVE”), announces today that it has signed an agreement with the shareholders of Formata Holding B.V. (“Formata”) (the "Grantors"), the owner of the Karusel hypermarket chain (“Karusel”), for the acquisition of the entire issued share capital in Formata and related intellectual property for a total amount of approximately USD 940 million, including an in-kind payment of 6,986,020 X5 GDRs at a provisional value of USD 33.10 per GDR. The acquisition of Formata is expected to complete before 28 June 2008.