X5 places RUR 5 bln corporate bond offering

X5 Places RUR 5 BLN CORPORATE BOND OFFERING

Moscow, 5 October 2012 - X5 Retail Group N.V. ("X5" or the "Company"), Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), announced today that the Company's wholly-owned subsidiary, OOO X5 FINANCE, has successfully placed a BO-01 series corporate bond (the "Bond") in the amount of five billion Russian Roubles.  

The Bond, which was nearly 20% oversubscribed, has an annual coupon rate of 9.5% and a three-year maturity. X5 intends to use the proceeds from the Bond to refinance short-term obligations and improve the Company's debt maturity profile.

The Lead Managers for the Bond offering were OAO Alfa Bank, ZAO VTB Capital and ZAO Raiffeisenbank while ZAO Globex Bank was a Co-Lead Manager and LLC Ronin the Bond Underwriter.

Note to Editors:

Headquartered in Moscow, X5 Retail Group (LSE: FIVE, Moody's - "B2", S&P - "B+") is Russia's largest retailer in terms of revenue. The Company operates several retail formats: the soft discounter chain under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand, the online retail channel under E5.ru brand and convenience stores under various brands.

As at 30 June 2012, X5 had 3,298 Company-operated stores. It has the leading market position in both Moscow and St. Petersburg and a significant presence in the European part of Russia. Its store base includes 2,783 soft discounter stores, 341 supermarkets, 77 hypermarkets and 97 convenience stores. The Company operates 28 DCs and 1,539 Company-owned trucks across the Russian Federation.

X5 is run on an SAP platform.

As at 30 June 2012, X5's direct franchisees operated 399 stores across Russia.

For the full year 2011, net sales totaled USD 15,455 mln, EBITDA reached USD 1,130 mln, and net profit amounted to USD 302 mln. For the first half 2012, net sales totaled USD 7,859 mln, EBITDA reached USD 554 mln and net profit amounted to USD 135 mln.

X5 Shareholder structure is as follows: Alfa Group - 47.86%, founders of Pyaterochka - 19.85%, X5 Directors - 0.14%, treasury shares - 0.11%, free float - 32.04%.