OREANDA-NEWS. September 21, 2012. X5 Retail Group N.V., (“X5” or the “Company”), Russia's largest retailer in terms of sales (LSE ticker: “FIVE”), announced today that the Company and the Tula Regional Administration have signed a Cooperation Agreement (the “Agreement”) to implement an investment project to develop the region’s retail infrastructure. The Agreement was signed by Mikhail Susov, X5’s Corporate Relations Director, and Vladimir Gruzdev, Governor of the Tula Region. Yulia Peskovskaya, Deputy Governor, Deputy Chief of the Representative Office of the Administration of the Tula Region in the Russian Government, also attended the signing ceremony.

According to the Agreement, during the period from 2012 to 2014, X5 will invest up to one billion Russian roubles to open at least 45 stores in the Tula Region. The investment in new store openings is expected to positively contribute to the region’s development by creating an estimated 1,000 new jobs, supporting local producers and introducing the latest retail technologies to the local markets.

The expansion of a major federal retailer in the region will also help satisfy consumer demand for high quality products at affordable prices.

Currently, the Company operates 57 Pyaterochka soft discounter stores in the Tula Region and cooperates with the largest Tula producers of food products (including: bread, milk and meat). X5 adapts its trading matrix to include local products sold in its regional stores wherever possible.

The Company has previously concluded Cooperation Agreements with the Yaroslavl, Ryazan, Tver, Kursk, Samara and Orel Regional Administrations.

Mikhail Susov provided the following comments:

“The T^la Region is a fast d^'veloping Russian region that is open for investments. That is why X5 intends to expand the Company’s presence in the region by opening new Pyaterochka, Perekrestok and Karusel stores, in order to provide consumers with high quality products at affordable prices. ”