About the Company

DIXY GROUP is one of the leading Russian company engaged in retail sales of foodstuffs and household supplies. With the first DIXY store opened in 1999 in Moscow, the Company now operates 492 stores, including 471 "Dixy" discounter stores, 13 "Megamart" compact hypermarkets and 8 "Minimart" supermarkets in three federal districts of Russia as of April 30, 2009.

As one of retail market leaders, the Company aims to actively develop the network of budget-line grocery stores in the key regions of the country.

Regions

DIXY Group of Companies' units currently operate in the following regions:

• "Dixy" format — discounter: Moscow, Moscow Oblast (South, East), Ryazan, Yaroslavl, Yaroslavl Oblast, Kaluga, Kaluga Oblast, Smolensk, St. Petersburg, Leningrad Oblast, Chelyabinsk, Chelyabinsk Oblast, Karelia, Velikiy Novgorod;
• "Minimart" format — budget-line supermarket: Urals (Ekaterinburg, Nizhny Tagil, Novouralsk, Sysert);
• "Megamart" format — compact hypermarket: Urals (Ekaterinburg, Nizhny Tagil, Tyumen).

Financial Results

Stores

DIXY Group's rate of growth continues to rise, as new operating unit numbers illustrate. In 2007 Dixy opened 65 new stores. Year 2006 saw the rollout of 115 new stores, up 44% compared to 2005. For the first and second quarters of 2008 fifteen new stores were opened.

The cumulative increase in total selling space at year-end 2006 was 44,380 sq.m., an increase of 52%.

In 2007 selling space grew by 22,850 sq.m., an increase of 18%.

In 2008 selling space grew by 40,000 sq.m., an increase of 27%.

The total selling space in 2006 reached 129,960 sq.m., of which 113,300 sq.m. were occupied by "Dixy" stores; 4,800 sq.m. — by "Minimart" supermarkets; 11,800 sq.m. — by "Megamart" hypermarkets.

In 2007 total selling space reached 150,991 sq.m., of which 126,670 sq.m. were occupied by "Dixy" stores; 5,031 sq.m. — by "Minimart" supermarkets; 18,819 sq.m. — by "Megamart" hypermarkets.

The Group's considerable experience in operations on the Russian market paired with well-developed business technologies facilitate the successful implementation of a large-scale development program.

The Group sets a long-term goal to become the largest and most efficient discounter-format retail network operator in Russia while maintaining its position among the top 5 Russia's food retailers.