REWE Group extends market position in the Czech Republic

Cologne/Prague, 13.11.06

Takeover of 95 Delvita stores makes BILLA the supermarket chain with the highest turnover The REWE Group, one of Germany's and Europe's leading retailer, continues its strategy of international expansion. Subject to the approval of the Competition Authority, German REWE Group and Belgian Delhaize Group have reached agreement on the take-over of the Delvita stores in the Czech Republic.

With the takeover of the Delvita stores, the number of supermarkets operated by the REWE Group in this young EU country will more than double to over 170, establishing BILLA - the supermarket brand the company has adopted for its expansion outside Germany - the number 1 in the supermarket segment in the Czech Republic. Most of the 95 stores taken over by the REWE Group will be converted into BILLA stores within the next two years.

"Because of its central location and its size - it is the fifth largest market in Central and Eastern Europe - the Czech Republic plays an immensely important role in our internationalisation strategy. The REWE Group is committed to further increasing its international share, which has already reached 32 percent, in the coming years", said Alain Caparros, the Spokesman of the Management Board of the REWE Group, about the company's involvement in the Czech Republic. According to Caparros, the acquisition of the Delvita stores results in a much more closemeshed distribution network and enhances the company's impact in this country.

With the acquisition of the stores, BILLA also takes over the employees. A better integration of the company will create suitable conditions and a sound basis for longterm success. Delvita recorded in 2005 sales of EUR 304.6 million and employed at the end of 2005 3,800 associates.

BILLA: Closer to the customer through extended network of stores
The takeover by BILLA ensures the continued existence of the Delvita stores, which are found in all large towns of the country. In the important metropolitan area of Prague alone, there are 31 Delvita stores. The welldeveloped network of stores is also the decisive reason for the REWE Group because the locations ideally complement the existing network of BILLA stores. In addition, the store concept and corporate strategy are similar to those of BILLA. As a result of the takeover, BILLA improves its market position as a local supplier, and the more closemeshed network of stores reduces the distance to the customer significantly. Furthermore, BILLA's focus on value for money, a comprehensive range of fresh products and service with skilled employees will optimise Delvita's established concept.

At present, BILLA operates 80 stores in the Czech Republic, which achieved gross sales of EUR 250 million in 2005.

REWE Group in the Czech Republic
Last year, the REWE Group reached sales of EUR 665 million in the Czech Republic with its 240 supermarkets and discounters and 6,300 employees. In the discount market segment, the group's 160 Penny stores give it the status of market leader. In the supermarket segment, the 80 BILLA stores established the REWE Group as one of the top three in the country. In order to further improve the already good position in the fiercely disputed Czech grocery business, the Spokesman of the Management Board, Alain Caparros, recently announced in Prague that approximately EUR 130 million would be invested in the coming years.

With total sales of EUR 41.7 billion, 260,564 employees in Germany and 13 European countries, the REWE Group is the number 3 of the European grocery trade. In Central and Eastern Europe alone, the REWE Group increased its turnover by more than 15 percent to EUR 3 billion in 2005.

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REWE GROUP-Corporate Communications
Tel.: 0221 - 149-1050
E-Mail: presse(at)rewe-group.com

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