X5 Retail Regulatory News (FIVE)

X5 RETAIL GROUP LAUNCHES NEW FORMAT

 PYATEROCHKA-MAXI

Amsterdam, 18 November 2010 - X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), announces today that it has launched a new retail format operating under the brand name "Pyaterochka-Maxi." Pyaterochka-Maxi is an economy-class hypermarket focused on sales of food and non-food items to retail and wholesale customers. The new format meets the needs of small enterprises (HoReCa) and other B2B customers. The first Pyaterochka-Maxi opens today in Syzran (Samara Region) in the Avtobus shopping center.

The Pyaterochka-Maxi store has selling space of 3,500 sq.m., offers 7,000 SKUs (80% food and 20% non-food), and is expected to serve thousands of customers a day. 

Store layout, infrastructure and simpler assortment are geared both to retail and B2B wholesale purchasers. High-rise shelving, wide aisles, absence of product displays and booths provide clear passage to 18 cashiers, and there is a special loading dock for large bulk purchases. Parking can accommodate 200-250 vehicles in addition to special minibus service.

The main competitive advantage of Pyaterochka-Maxi is price leadership. It will offer the best prices by monitoring all competitors and meeting or beating them on every item. Wholesale bulk purchases will be entitled to an additional volume discount of some 10% to 15%.

Lev Khasis, CEO of X5 Retail Group, said:

"Pyaterochka-Maxi is a format specially developed for Russian regions including small cities with population of 50 thousand or more. This new economy-class hypermarket format will enable X5 to enter new markets and reach low income customers that are under-served by the competition. We are excited about the launch of Pyaterochka-Maxi and are confident that over time it will be as popular as Pyaterochka."

Note to Editors:

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 half 2010, net sales totaled USD 5,184 mln, EBITDA reached USD 399 mln, and net profit amounted to USD 104 mln. For the nine months 2010, net retail sales totaled USD 7,779 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.