X5 ACQUIRES FORMER FRANCHISEE IN SAMARA

X5 ACQUIRES FORMER FRANCHISEE IN SAMARA

Moscow, 15 October 2014 - X5 Retail Group N.V., ("X5" or the "Company"), a leading Russian food retailer, announced today that the Company has acquired a 100% participation interest in "Agrotorg- Samara". X5 has received all necessary approvals from the Federal Anti-monopoly Committee for the acquisition.

"Agrotorg-Samara", established in 2004, is a former X5 franchisee operating 116 stores in Samara and the Samara Region with total selling space of 36 thousand square meters, of which two-thirds are leased. For the first six months of 2014, "Agrotorg-Samara" reported net sales (net of VAT) of approximately three billion Roubles.

The acquired stores will be operated by Pyaterochka alongside the 168 stores the format currently runs in the Samara region. X5 also has 16 Perekrestok supermarkets and five Karusel hypermarkets in the region.

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Note to Editors:

X5 Retail Group N.V. (LSE: FIVE, Moody's - "B2", S&P - "B+") is a leading Russian food retailer. The Company operates several retail formats: the chain of economy class stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand, Express convenience stores under various brands and the online retail channel under the E5.RU brand.

At 30 September 2014, X5 had 5,005 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 4,342 Pyaterochka economy-class stores, 389 Perekrestok supermarkets, 81 Karusel hypermarkets and 193 Express stores. The Company operates 31 DCs and 1,528 Company-owned trucks across the Russian Federation.

For the full year 2013, revenue totaled RUB 534,560 mln, EBITDA reached RUB 38,350 mln, and net income amounted to RUB 10,984 mln. In H1 2014, revenue totaled RUB 299,746 mln, EBITDA reached RUB 21,194 mln, and net income amounted to RUR 6,449 mln.

X5's Shareholder structure is as follows: Alfa Group - 47.86%, founders of Pyaterochka - 14.43%, X5 Directors - 0.03%, treasury shares - 0.04%, free float - 37.64%.