OREANDA-NEWS. June 7, 2008. OJSC “Company “M.video” (RTS, MICEX: MVID) announces the signing of the contract with SAP, the world's largest business software company. The agreement was signed today by M.video and SAP during the 12th St.Petersburg Economic Forum.

The contract provides for installation of the full set of solutions for the retail industry, including SAP Retail, MAP (Merchandise and Assortment Planning) and F&R (Forecasting and Replenishment) at M.video’s headquarters and hypermarkets. SAP was appointed as general contractor under the agreement.

The SAP Retail platform enables the optimization of the Company’s business processes, bringing greater economies of scale and efficiency to the whole of M.video’s supply chain. The benefits of installation of the SAP solutions will be improved stock management and cost reduction in the areas of IT and logistics.

The contract totals the amount of USD 30 million, which includes the purchase of licenses, consulting and hardware.

The installation of the new SAP platform at M.video will start up in June 2008 and take 28 months.

M.video and SAP have enjoined long relationship since 2006, when the first SAP-based modules (general management, HR and financial accounts) were installed in M.video.

Alexander Tynkovan, President and CEO of M.video Group commented on the event: “Developing a high class ERP solution is a prerequisite for our future profitability and delivery on expansion plans. The improvement of the Company’s IT infrastructure will add more efficiency to M.video operations and help secure our strong position in the market”.

“The implementation of the SAP solution will enable M.video to achieve greater execution effectiveness and operational efficiency and enable the company to focus on its growth potential in the competitive Russian market. SAP will act as the prime contractor in this implementation”, - said Erwin Gunst, President CSO EMEA, Corporate Officer SAP AG.