X5 Retail Regulatory News (FIVE)

26 Oct 2006 11:28

Pyaterochka Holding N.V.26 October 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN 26 October 2006 CORRECTION TO MEDIA REPORTS REGARDING REVENUE PROJECTIONS X5 Retail Group N.V. (Pyaterochka Holding N.V.), Russia's largest food retailerin terms of sales, wishes to correct a report by Prime-TASS (a Russian newsagency) reproduced by other news outlets, which incorrectly interpreted astatement by Vitaliy Podolskiy, Group CFO, regarding revenue projection in FY2006 made at the Russian CFO summit on 26 October 2006. The report says, "The revenue of X5 Retail Group N.V., which owns Russiangrocery chains Pyaterochka and Perekriostok, is projected at U.S. $3.45 billionin 2006, or $1.98 billion from Pyaterochka and $1.47 billion from Perekriostok,X5 Retail Group's Financial Director Vitaliy Podolskiy told a conferenceWednesday." In fact, Vitaliy Podolskiy distinctly and repeatedly attributed the abovenumbers to independent analyst reports in discussing the Company's options forfuture M&A strategy. Therefore, the revenue projections which Mr. Podolskiyreferred to in his presentation should not be interpreted as the Company's ownprojections, nor attributed to the Group CFO's views. Note to Editors: X5 Retail Group N.V. (Pyaterochka Holding N.V.) is Russia's largest foodretailer in terms of sales. As of 30 September 2006, the group had 420company-managed "Pyaterochka" soft discount stores located in the Moscow (199),St. Petersburg (199) and Yekaterinburg (22) areas, and 141 company-managed"Perekrestok" supermarkets across Central Russia and Ukraine, including 81stores in Moscow. As of 30 September 2006, franchisees operated 539 Pyaterochka branded storesacross Russia, in Ukraine and Kazakhstan. Perekrestok has 10 convenience storesoperated by franchisees in the Moscow area. Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 tocreate the clear leader in the Russian food retail market. Pyaterochka's 2005 net sales (pre-merger) reached USD 1,359 million, with grossbanner sales in 2005 of over USD 2 billion. Perekrestok net sales reached USD1,015 million in 2005. The Group's pro forma (assuming both chains contribution from 1 January 2006)net sales for the first half of 2006 were US $1,581 million (managementaccounts). During 1H 2006, the Pyaterochka chain provided US $906 million of netsales, while the Perekrestok chain contributed US $675 million of net sales. - End - Enquiries to: X5 Retail Group N.V. (Pyaterochka Holding N.V.) Gennady Frolov Head of Corporate Communications Office +7 495 984 6956 ext.2093 Mobile +7 495 998-3335 Email gennady.frolov@x5.ru This information is provided by RNS The company news service from the London Stock Exchange