OREANDA-NEWS. March 14, 2011. X5 Retail Group N.V., Russia's largest retailer in terms of sales, today announced that it has accepted the resignation of Lev Khasis after five successful years as CEO. The Company's Supervisory Board has elected Andrei Gusev as successor with immediate effect and will recommend to the Annual General Meeting of Shareholders to appoint Mr. Gusev as Chief Executive Officer as of the date of the meeting to be held in June 2011. Lev Khasis will remain with the Company through 01 June 2011 to ensure a smooth transition. Andrei Gusev is currently Deputy CEO of X5 and as such widely contributed to the Company's success over the last years.

Herve Defforey, Chairman of the Supervisory Board, commented:

"We would like to thank Lev Khasis for his leadership and dedication to our Company over many years. Lev has made an outstanding contribution to X5 and brought a strong focus on serving customers. During Lev's tenure as CEO the Company has grown more than fourfold in size. We wish him great success in his future endeavors. "

"This management change occurs at a time of strength and momentum for our Company. I have been working with Andrei Gusev over the last five years. I am convinced that the Company under Andrei's leadership will continue to be the dominant player in Russian retail in the years to come."

Andrei Gusev added: "I have been with X5 for many years and understand well its priorities, challenges and opportunities. The Company has a well articulated strategy aimed at enhancing competitive advantages of its multi-format business model. Our senior and experienced management team is focused on strengthening X5's position and on making X5 a stronger and more efficient company that generates substantial value for shareholders. "

Lev Khasis commented: "My five years as CEO of X5 have been the most amazing of my life, and I am proud of the Company's achievements. Thanks to our investments in new store openings, logistics, IT and modern retail technologies X5 has the number one position in the market and has emerged from the economic downturn stronger than before. I believe it is time for me to focus on other opportunities in life, and I will remain a loyal customer and shareholder of X5. It has been a great pleasure working with Andrei since X5 was created and prior to that serving together with him at the Board of Perekrestok where I served as Chairman, and I wish him all the success in taking the business to new highs building on the strong platform we created.

"I want to thank all X5 shareholders and the Boardfor their support over the last few years. And a special thank you to all employees of X5 for working hard to make X5 a great company and a great place to work."