X5 Retail Regulatory News (FIVE)

3 Jul 2006 09:16

Pyaterochka Holding N.V.03 July 2006 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN 3 July 2006 Pyaterochka HOLDING n.v. TRADING UPDATE As of 1 July 2006, the current excise labels which are used for imported wineand spirits allowed for sale in the Russian Federation are invalid. PyaterochkaHolding N.V. estimates that full range of imported wine and spirits with newexcise labels may only be available within two or three months from 1 July 2006. Imported wine and spirits will only be available for retail sale once productswith the new excise labels are available in the Russian Federation. Their salesvia organized retail channels are forecast to decrease during the coming monthsdue to a shortage of new excise labels, as retailers are forbidden from sellingproducts with old excise labels after 30 June 2006. It is also important tohighlight that this is a common issue which all retailers in the RussianFederation face as of 1 July 2006. The company estimates that the complete return of imported wine and spirits tothe company's stores may not occur until 60 to 90 days from this announcement. It is expected that sales at both the Pyaterochka and Perekrestok chains maysuffer as a result of this delay. The company and its suppliers areundertaking all possible actions to limit the negative effect of this situationon the company's operations, and it is difficult at this stage to quantify thepotential impact on store operations. Pyaterochka Holding N.V. is closely monitoring this situation and will providethe market with further updates as the expected timeframe and potential impactof this issue become more apparent. Note to Editors: Pyaterochka Holding N.V. is Russia's largest food retailer in terms of sales.The group has 371 company-managed "Pyaterochka" soft discount stores located inthe Moscow (177), St. Petersburg (175) and Yekaterinburg (19) areas, and 127company-managed "Perekrestok" supermarkets across 14 regions of Central Russiaand Ukraine as of 31 March 2006. 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. Pyaterochka's Q1 2006 net sales (pre-merger) reached USD 439 million, andPerekrestok Q1 2006 sales were USD 323 million. As of 31 March 2006, franchisees operated 439 Pyaterochka branded stores in 15regions of Russia, Ukraine and Kazakhstan. Pyaterochka currently has masterfranchise agreements in 20 regions of Russia, Ukraine and Kazakhstan.Perekrestok has 9 convenience stores operated by franchisees in the Moscow area. - End - Enquiries to: Pyaterochka Holding NV Tanja Djurdjevic Investor Relations Tel +7 495 724 6414 Email ir@e5.ru This information is provided by RNS The company news service from the London Stock Exchange