OREANDA-NEWS. June 27, 2012. X5 Retail Group N.V., (“X5” or the “Company”), Russia's largest retailer in terms of revenue (LSE ticker symbol: FIVE), announced yesterday that the Company and the Kursk Regional Administration have signed a Cooperation Agreement (the “Agreement”) providing for regional investment and job creation. The Agreement was signed by Alexander Mikhailov, Governor of the Kursk Region, and Mikhail Susov, Corporate Relations Director, X5 Retail Group.

Within the framework of the agreement, Х5 plans to invest up to RUR two billion for new store openings in the Kursk Region in 2012 and 2013 creating more than 1,000 new jobs. The Company's store expansion will strengthen X5's presence in the region and provide more affordable products for consumers, as a result of increased competition among the existing stores of other chains in the region.

Currently, the Company operates 16 Pyaterochka soft discounter stores and two Perekrestok supermarkets in the Kursk Region, which are supplied by major local producers, including CJSC Kurskhleb. X5 plans to further adapt its assortment matrix in the region to increase the share of locally produced goods.

Х5 has previously concluded cooperation agreements with the Yaroslavl, Ryazan, Tver and Orel Regional Administrations.

Mikhail Susov, X5's Corporate Relations Director, commented:

"We consider the Kursk Region as a priority region in Russia's Centralno-Chernozemny district. The region's average wage is growing, the unemployment rate has fallen to minimal levels and there are many high quality food product manufacturers located here. The Kursk Region has all the attributes necessary to develop a successful retail business."