X5 Retail Regulatory News (FIVE)

2011 Preliminary outlook:

x5 plans to open A Record 540 new stores and achieve gross sales in excess of rur 500 billion

Amsterdam, 23 December 2010 - X5 Retail Group N.V., Russia's largest food retailer in terms of sales (LSE ticker: "FIVE"), announced today its preliminary outlook for 2011. Outlook for 2011 includes sales contribution from approx. 700 acquired Kopeyka stores plus organic top-line growth from new store openings and increased LFL sales.

Outlook 2011:

Ø Gross sales to exceed RUR 500 billion (inclusive of VAT) representing top-line growth of approx. 40%. We expect this increase to be driven by organic RUR net sales growth in the low 20 percent range on a higher base compared to 2010, with the remainder contributed by the Kopeyka acquisition.

Ø New store openings:

• Discounters: 500

• Supermarkets: 20-25

• Hypermarkets: 5-10

• Pyaterochka Maxi: ~10

Ø CapEx - up to RUR 40 bln.

• New stores: ~55%

• Integration, maintenance, reconstruction, & IT: ~30%

• Logistics & other: ~15%

 X5 Retail Group CEO Lev Khasis commented:

"Execution of X5's 2010 growth plans has been strong and disciplined. We will end the year with a record number of new store openings while staying below our CapEx limit. We are on track to deliver on X5's 2010 outlook for top-line-growth in the low 20-percent range, supported by a recovery in consumer spending and trading-up trends in the fourth quarter.

"We believe this is the right time to further accelerate growth. X5 recently completed the acquisition of Kopeyka, adding to opportunities for our industry-leading discounter format and complementing our core organic growth strategy. Today we are proud to announce the Company's 2011 outlook, with plans to significantly increase the pace of organic expansion with some 540 new store openings. This together with the Kopeyka acquisition should enable X5 to deliver in excess of RUR 500 billion in gross sales, representing top-line growth of approximately 40%."

Please note that in future X5 will issue its preliminary annual outlook in January of the new year in conjunction with the Company's fourth quarter trading announcement.

Note to Editors:

About X5 Retail Group

X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006. In June 2008, X5 acquired Karusel hypermarket chain and substantially strengthened its position in hypermarket format.

As at 30 September 2010, X5 had 1,630 Company-managed stores located in Moscow,St. Petersburg and other regions of European Russia, Urals and Ukraine, including 1,232 soft discount stores, 289 supermarkets, 65 hypermarkets and 44 convenience stores.

As at 30 September 2010, X5's franchisees operated 632 stores across Russia.

For the full year 2009 X5's net sales totaled USD 8,717 mln, EBITDA reached USD 736 mln, and net profit amounted to USD 165 mln.

For the first nine months 2010, net sales totaled USD 7,798 mln, EBITDA reached USD 593 mln, and net profit amounted to USD 183 mln.

X5 Shareholder structure is as follows: Alfa Group - 47.9%, founders of Pyaterochka - 23.1%, X5 Management - 1.9%, treasury shares - 0.1%, free float - 27.0%.

Forward looking statements:

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as" anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal" believe", or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.

Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.