DIXY : completes the integration of Mercury federal system

PRESS RELEASE

DIXY GROUP COMPLETES THE INTEGRATION OF MERCURY FEDERAL SYSTEM

Moscow, Russian Federation, December 18, 2017

DIXY Group is completing the alignment of its internal business processes with the requirements of Mercury Federal State Information System. Until the year end, all the Company's distribution centers are scheduled to be fully converted to processing veterinary documentation in the Mercury system.

Currently four DIXY Group distribution centers have been converted to execution of accompanying veterinary documents for animal products in electronic format using the Mercury system. Until the year end, two more distribution centers - Shushary and Vnukovo - are to be connected to the system. Thus all the Company's DCs will complete the transition to electronic processing of veterinary documents.

Veterinary certificates for products shipped from distribution centers to retail stores are also now executed electronically. Approximately 30% of the chain's partners have switched to this format. Suppliers of meat and fish products and pet foods are more active in introducing and assimilating Mercury. At the moment, DIXY Group stores execute about 12,000 electronic certificates per week. This volume will grow notably after full conversion to the new format.

DIXY Group started preparing for the integration back in 2015 by forming a project team to develop a solution that allowed to synchronize the Company's business processes with Mercury system requirements. All the employees engaged in processing electronic veterinary certificates have undergone special training. Full conversion to Mercury usage will allow to expediently receive accompanying veterinary documents from suppliers, accelerate their validation, cut archiving costs, reduce reaction time in case of detection of inferior quality products, and, if necessary, allow immediate access to documents request from inspection authorities. Since July 1, 2018, the use of Mercury system will become mandatory for all food market participants manufacturing and selling products subject to veterinary control. Earlier Rosselkhoznadzor announced the transition to mandatory electronic veterinary certification since January 1, 2018, but later decided to postpone the introduction of electronic veterinary certificates by half a year due to unpreparedness of most market participants.

Background

DIXY Group (MICEX: DIXY) is one of Russia's leading companies in food and fast moving consumer goods retail.

As of September 30, 2017 the Company operated 2,704 stores, including 2,534 DIXY neighborhood stores, 130 Victoria stores and 40 compact hypermarkets MegaMart and MiniMart, located in 752 Russian towns and settlements.

The Group's footprint covers four Federal Districts of Russia: Central, North-West and Urals, as well as Kaliningrad and the Kaliningrad Region.

In 2016, DIXY Group's total revenue amounted to RUR 311 billion.

PJSC DIXY Group's shares are traded in the Moscow Exchange since 2007.

Contacts:

Vladimir Rusanov Media Relations Director DIXY Group +7 495 223 3337 (ext. 2132) +7 903 629 56 03v.rusanov@dixy.rupr@dixy.ruhttp://www.dixygroup.com