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2017-02-08

Detsky Mir: DETSKY MIR PRICES INITIAL PUBLIC OFFERING AT RUB 85 PER SHARE

Copies of this announcement are not being made and may not be distributed or
sent, directly or indirectly, into the United States (including its
territories and possessions, any State of the United States and the District
of Columbia), Canada, Australia or Japan.

This announcement is not and does not form part of any offer or solicitation
to purchase or subscribe for securities in the United States. The securities
referred to herein are not registered under the U.S. Securities Act of 1933,
as amended, and may not be offered or sold in the United States absent
registration or an exemption from registration under the U.S. Securities Act
of 1933, as amended. PJSC Detsky mir does not intend to register any portion
of the offering of any securities referred to herein in the United States or
to conduct a public offering of the securities in the United States.

This communication does not constitute an offer of the securities to the
public in the United Kingdom. No prospectus has been or will be approved in
the United Kingdom in respect of the securities. This communication is being
distributed to and is directed only at (i) persons who are outside the United
Kingdom; (ii) persons who are investment professionals within the meaning of
Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended from time to time (the "Order"); (iii) high
net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order; (iv)
certified high net worth individuals and certified and self-certified
sophisticated investors as described in Articles 48, 50 and 50A, respectively
of the Order; and (v) persons to whom this communication may otherwise be
lawfully communicated (all such persons together being referred to as
"Relevant Persons"). Any investment activity to which this communication
relates will only be available to and will only be engaged with, Relevant
Persons. Any person who is not a Relevant Person should not act or rely on
this document or any of its contents.

This communication is distributed in any member state of the European Economic
Area which applies Directive 2003/71/EC (this Directive together with any
implementing measures in any member state, the Prospectus Directive) only to
those persons who are qualified investors for the purposes of the Prospectus
Directive in such member state, and such other persons as this document may
be addressed on legal grounds, and no person that is not a relevant person or
qualified investor may act or rely on this document or any of its contents.

DETSKY MIR PRICES INITIAL PUBLIC OFFERING AT RUB 85 PER SHARE

Moscow, Russia - 8 February 201
7.
Public Joint Stock Company "Detsky mir" (the "Company" and, together with its
subsidiaries, the "Group" or "Detsky Mir"), Russia's largest specialised
children's goods retailer, today announced the pricing of its initial public
offering (the "Offering") of its ordinary shares (the "Shares") on Moscow
Exchange.

HIGHLIGHTS

* The offer price has been set at RUB 85 per Share.
* The total size of the Offering is approximately RUB 21.1 billion, including
the over-allotment option, or RUB 18.4 billion, excluding the
over-allotment option.
* The Offering implies a market capitalisation at the commencement of
dealings of approximately RUB 62.8 billion.
* The Shares have been admitted to trading in Level 1 of the List of
Securities Admitted to Trading on Moscow Exchange. Trading is expected to
commence on 10 February 2017 under the ticker "DSKY".
* The Offering consists of a sale by existing shareholders (the "Selling
Shareholders") of 247,912,160 Shares, or 33.55% of the Company's existing
share capital, including the over-allotment option or 216,514,669 Shares,
representing 29.30% of the Company's existing share capital, excluding the
over-allotment option.
* The Selling Shareholders are: * PJSFC Sistema ("Sistema") owned a 72.57%
stake immediately before the Offering, and sold 145,055,738 Shares,
representing approximately 19.63% of the Company's share capital, with the
possibility to increase the number of Shares sold to a total of 166,814,099
(representing approximately 22.57% of the Company's share capital) in the
event that the over-allotment option is exercised. As a result of the
Offering Sistema will retain a stake in Detsky Mir of at least 50% +1
share. * Russia-China Investment Fund ("RCIF", established by the Russian
Direct Investment Fund (RDIF) and the China Investment Corporation (CIC))
owned via its investment vehicles Floette Holdings Limited and Exarzo
Holdings Limited a 23.10% stake immediately before the Offering, and sold
64,260,870 Shares, representing 8.70% of the Company's share capital, with
the possibility to increase the number of Shares sold to a total of
73,900,000 (representing approximately 10.00% of the Company's share
capital) in the event that the over-allotment option is exercised. As a
result of the Offering RCIF will retain a stake in Detsky Mir of at least
13.10%. * Certain individual shareholders, including members of the
management teams of the Company and Sistema, collectively owned a 4.33%
stake immediately before the Offering, and sold 7,198,061 Shares,
representing approximately 0.97% of the Company's share capital. As a
result of the Offering the individual shareholders will collectively retain
a stake in Detsky Mir of 3.35%.
* In connection with the Offering, Sistema, Floette Holdings Limited and
Exarzo Holdings Limited have granted to the Joint Bookrunners an
over-allotment option to purchase Shares representing up to 15% of the
Shares sold by them in the Offering at the offer price.
* In connection with the Offering, Goldman Sachs, acting as stabilising
manager, will have the right, during a period of up to 30 calendar days
from the date hereof, to purchase from the market, for stabilisation
purposes, up to 31,397,491 Shares.
* There will be a lock-up period of 365 days for the management of the
Company and 180 days for the other Selling Shareholders and the Company.
* Credit Suisse, Goldman Sachs International and Morgan Stanley are acting as
Joint Global Coordinators and Joint Bookrunners. Sberbank CIB and UBS
Investment Bank are acting as Joint Bookrunners.

Vladimir Chirakhov, CEO of Detsky Mir
, said:

"We are delighted by the strong market interest in our offering, and are
pleased now to move forward with a high-quality and geographically diverse
shareholder base. The IPO caps off an extremely successful year for Detsky
Mir. We expect our financial results for 2016 to be the strongest in the
Company's history and we will continue to grow the business and further
expand our market share, with around 250 new store openings planned by 2020.

"Going forward, the focus of the management team will be to ensure that we
deliver on the promises we made during the IPO. We look forward to making our
new shareholders proud to stand behind and benefit from the continued success
story that is Detsky Mir
."

Mikhail Shamolin, President and CEO of Sistema,
said:

"We are pleased with the success of Detsky Mir's offering, and welcome the
expanded family of shareholders to this uniquely attractive business.

"Over the last several years we have grown Detsky Mir into a major retailer,
while consistently generating strong
growth and
returns on capital. Today, the Company
begins
a new chapter in its history with a highly successful IPO - the first in
Russia in 2017 and the largest in EMEA year-to-date - that attracted a
highly
diversified book of domestic and international investors from Europe, the US
and Asia.

"Sistema has maintained its controlling interest in Detsky Mir as we believe
that significant further potential remains to be unlocked. The Company is
well positioned to continue its growth by capitalising on its market
leadership, robust infrastructure, iconic brand and high-growth e-commerce
segment under one of the best management teams in the Russian market."

Kirill Dmitriev, CEO of the Russian Direct Investment Fund and Co-CEO of RCIF
, said:

"The IPO of Detsky Mir represents a landmark transaction for the Russian
market. The deal was made possible largely thanks to the hard work of the
Company's shareholders, including the arrival of RCIF as a pre-IPO investor
in the Company a year ago. Detsky Mir is an example of a fast-growing Russian
company that delivers impressive results, and we expect its growth to
accelerate alongside the resumption of growth in the Russian economy. Despite
a difficult macroeconomic situation, Detsky Mir achieved EBITDA growth of
more than 50% in the first nine months of 2016. The success of this deal
confirms strong demand from international investors for public placements of
top quality Russian companies. It has also opened the door for other Russian
issuers looking at public markets."

Hu Bing, Co-CEO of RCIF
, said:

"RCIF remains the largest minority shareholder of Detsky Mir, whose IPO was an
important event for the Russian equity market and revealed high levels of
interest among foreign investors in Russian assets. The investment in Detsky
Mir is also an important success story for Chinese investors working in
Russia and interested in investments in the country. We intend to implement
further successful projects and investments in Russia."

ABOUT DETSKY MIR

GROUP HIGHLIGHTS

* Undisputed market leader in Russia in a large, growing and resilient
consumer market segment
* Category-defining brand, highly popular customer proposition and
longstanding presence in the market
* Highly diversified product selection that attracts customer traffic and
supports growth and resilience of sales and profitability
* Rapidly growing e-commerce and omni-channel proposition underpin the
Company's growth
* Asset-light cash-generative business model providing strong returns on
capital and enabling consistent dividend payments
* Scalable supply chain and infrastructure platform
* Strong management team with track record of delivering business growth

Detsky Mir ("Children's World" in Russian) is the largest specialised
children's goods retailer in Russia, with a diversified product portfolio
comprising toys, products for newborns, fashion (apparel and footwear), large
items and other products. It is the market leader both in terms of size of
store network and in terms of revenue in the highly fragmented market for
children's goods in Russia. According to Ipsos Comcon, in 2015, Detsky Mir
had an estimated share of 32% (24% in 2014) of the specialised children's
goods retail market in Russia and 13% (10% in 2014) of the total market for
children's goods in R...

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