Hypercenter Investment

Hypercenter Investment is a joint venture with Jelmoli and the co-founders of Mosmart to develop shopping centers on sites already owned or controlled by the JV company in Moscow, St. Petersburg, and a number of regional Russian cities. Mosmart, a food retailer in which EPH holds a 10% stake, will be a hypermarket anchor tenant in each center.

The first Hypercenter Investment shopping center, currently nearing first-phase completion, will open in Nizhny Novgorod in late 2008.

The Company owns 25.9% of Hypercenter Investment. A subsidiary of Swiss retail/real estate holding Jelmoli owns 49%, and the founders of Mosmart own 25.1%.