27th Feb 2007 17:39
X5 Retail Group N.V.27 February 2007 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN 27 February 2007 COMMENT REGARDING A REUTERS REPORT Amsterdam, 27 February 2007 - X5 Retail Group N.V., Russia's largest foodretailer in terms of sales, wishes to comment on a today report of Reutersreproduced by other news outlets, which regards alleged sale talks betweenKarusel hypermarket chain and Wal-Mart. Lev Khasis, Group CEO, said: "According to the terms of the option agreementbetween X5 Retail Group N.V. and the owners of Karusel hypermarket chain, X5Retail Group N.V. has a call option to acquire the Karusel chain. We confirm ourintention to realize this option in case we consider this to be beneficial tothe Group." Andrei Rogachev, one of the key shareholders of Karusel chain commented: Theshareholders of Karusel do not participate directly in negotiations withWal-Mart. Two years ago we hired a major investment bank, which is doing its jobat a high level. The Karusel shareholders will meet their obligations under theoption agreement with X5 Retail Group. The Karusel business can be sold to aninternational operator only in case X5's refusal to execute the option. In sucha case Karusel chain will be sold through the dedicated investment bank at ahighest price. Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of31 December 2006, the Group had 451 company-managed "Pyaterochka" soft discountstores located in the Moscow (222), St. Petersburg (204) and Yekaterinburg (25)areas, and 168 company-managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 100 stores in Moscow. As of 31 December 2006, franchisees operated 605 Pyaterochka branded storesacross Russia, in Ukraine and Kazakhstan. Perekrestok had 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 net sales for the 9 months of 2006 were US $2,411 million(management accounts). During 1H 2006, the Pyaterochka chain provided US $1,374million of net sales, while the Perekrestok chain contributed US $1,037 millionof net sales. Forward looking statements: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identifiedby 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 otherwords of similar meaning. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, a number of which are beyond X5Retail Group N.V.'s control. As a result, actual future results may differmaterially from the plans, goals and expectations set out in theseforward-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 anyapplicable laws or regulations, X5 Retail Group N.V. undertakes no obligationpublicly to release the results of any revisions to any forward-lookingstatements in this document that may occur due to any change in its expectationsor to reflect events or circumstances after the date of this document. Enquiries to: X5 Retail Group N.V. Gennady Frolov Head of Corporate Communications Office +7 495 984 6956 ext.2093 Mobile +7 495 998 3335 Email [email protected] http://www.x5.ru This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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