X5 Retail Group N.V. Q3 2007 Trading Update
11 Oct 2007

Amsterdam, 11 October 2007 – X5 Retail Group N.V., Russia's largest food retailer in terms of sales (LSE ticker: “FIVE”), reports today a trading update including store opening data and Like-for-Like (“LFL”) sales trends by format and region for Q3 2007.  

Expansion

In Q3 2007, X5 Retail Group N.V. opened 43 new stores (including 37 soft-discounters and 6 supermarkets) with total net selling space of 24 396 sq. m., of which 6,916 sq. m. in supermarket format and 17,480 sq. m. in discounter format. Meantime, 3 non-format discounters with total net selling space of 448 sq. m. in Cheliabinsk were closed under the planned post-acquisition restructuring plan.
 
As of 30 September 2007, X5 Retail Group N.V. operated 749 company-managed stores (consisting of 573 soft discounters, 163 supermarkets and 13 hypermarkets), with total net selling space of 540,276 sq. m.

In the same period, X5’s franchisees’ store network increased by additional 26 stores. As of 30 September 2007, franchisees operated 627 stores across Russia and Kazakhstan in total.

Q3 2007 store opening progress (net selling space, sq.m.) :

Format:	Moscow Region[1]	North-Western Region[2]	Other Regions and Ukraine	Total  Net Selling Space Increase, Q3 2007	Total Net Selling Space Increase, 9M 2007	Total as of 30.09.2007
Hypermarket	-	-	-	-	4,000	50,179
Supermarket	2,432	1,270	3,214	6,916	12,847	175,654
Discounter	8,140	5,660	3,232	17,032	57,293	314,443
X5	10,572	6,930	6,446	23,948	74,140	540,276

Andrei Rybakov, X5 Retail Group Head of Development commented:

“During 9 months of 2007, we have added approximately half the targeted 150,000 sq. m additional net selling space for 2007.  Due to the traditional seasonality of the store opening cycle in Russia, with a historical store opening concentration in Q4, this result is expected and reproduces the store opening pattern of the past few years. For example in 2006, having added 65,000 sq. m. during the first 9 months, we exceeded our full year target of 120,000 sq. m. by 6,000 sq. m.,.
 
We have concluded contracts for all new store sites scheduled for the opening in 2007. Our target of 150,000 sq. m. for the full 2007 year remains unchanged and we are fully committed to meet it, while moving our focus on securing new sites for the coming year.“

Store Operations

During Q3 2007, X5 Retail Group N.V. even enhanced already strong Like-for-Like sales  performance of Q2 2007.

LfL store sales trends: Q3 2007 vs Q3 2006, 9 months 2007 vs 9 months 2006:

	Q3 2007			Pro-forma 9 months 2007
	Total LFL, %	Traffic, %	Basket, %	Total LFL, %	Traffic, %	Basket, %
Total X5	20	8	12	17	9	8
Total Hypermarket	17	7	10	15	11	4
Total Supermarket	21	10	11	18	13	5
Total Discounter	20	7	13	17	7	10
Moscow Region[1]
Total X5	25	11	14	22	13	9
Hypermarket	6	(3)	9	10	4	6
Supermarket	26	13	13	23	16	7
Discounter	28	11	17	22	11	11
North-Western Region[2]
Total X5	12	2	10	10	2	8
Hypermarket	-	-	-	-	-	-
Supermarket	14	7	7	18	14	4
Discounter	11	1	10	10	2	8
Regions:
Total X5	20	12	8	15	12	3
Hypermarket	27	13	14	21	16	5
Supermarket	10	5	5	5	5	0
Discounter	48	23	25	42	20	22

“We succeeded in our effort to overcome the traditional summer slow-down pattern, and are pleased to demonstrate even stronger results vs. Q2, especially in our core Moscow market.  Our operations in the regions outside Moscow and St. Petersburg, another geographical priority for the Group, also show outstanding improvements, first of all in the key Samara and Nizhniy Novgorod areas. 

Another important achievement was a healthy balance in the contributions of traffic and basket in the overall result across formats and regions.  This demonstrates our ability to continuously improve customer appeal and store value proposition in parallel to implementing an efficient and attractive price policy, especially in such highly competitive markets as Moscow and St. Petersburg.”

Lev Khasis, X5 Retail Group CEO, concluded:

“Considering our strong store performance, which is supported by successful integration in commercial purchasing and logistics, we confidently look forward to exceed the full year USD 5 billion net sales target.  The Company is entering the most important quarter in terms of sales and new store opening alike, and has all necessary execution plans and resources in place to meet its key 2007 financial and operational objectives.”          

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.

X5 Retail Group N.V.

LSE-Listed X5 Retail Group N.V. is Russia’s largest food retailer in terms of sales and the only multi-format operator in Russia and with a growing presence in Ukraine and Kazakhstan.  The two primary retail investments held by X5 include leading supermarket chain Perkerestok and Pyaterochka, one of the largest Russian discounter supermarket chains.  X5 uses a multi-format strategy to simultaneously develop three formats: discounters, supermarkets and hypermarkets.

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