O-STA

OBI unleashing expansion offensive announcing market entry in three new geographies

OBI is going to extend its international portfolio

Wermelskirchen, 29th of January 2008 - OBI will aggressively push its international expansion focussing efforts on Russia, Poland, Italy, the Czech Republic, Hungary and the Balkans. On top of these ambitious expansion targets OBI is about to enter three additional countries, namely Ukraine, Romania and Slovakia. Medium term targeting up to 20 stores both in Ukraine and Romania, OBI plans to open another 10-15 stores in Slovakia within short. First openings in these countries are scheduled for 2008.

"Market leadership is our goal - wherever OBI is present. Focussing on Central and Eastern Europe, Russia and Ukraine as major growth markets are key to our expansion strategy" says OBI CEO Sergio Giroldi. Based on this aggressive growth path OBI will boost the share of turnover generated abroad to more than 50 percent in the coming years.

In many international markets OBI already is N°1 (e.g., Russia, the Czech Republic, Hungary, Bosnia, etc.). Growth will now be the driving force to achieve market leadership also in many new geographies.

Sergio Giroldi, OBI CEO: "We intend to further fortify our market leading position in Central and Eastern Europe. Convinced of our competitive edge built on OBI's strong value proposition, our superior store formats and comprehensive DIY competence we will establish OBI as the leading DIY brand across CEE countries. In the years to come we will invest heavily in extending our store network. In so doing we are determined to move fast and commit ourselves to a dynamic profitable growth path."

Company portrait

With more than 500 stores OBI is the undisputed No 1 in the German market and one of the leading European DIY retailers. Apart from Germany, the Czech Republic, Slovenia, Poland, Hungary, Bosnia-Herzegovina and Russia, OBI is also present in Italy, Austria, Switzerland and Croatia. OBI is the fourth largest DIY retailer in the world and employs more than 38.000 people. The OBI stores recorded in the fiscal year 2006/2007 an overall sales worth EUR 5.8 billion. According to a survey by the TNS Infratest institute, OBI is among the best-known brands in Germany with unaided brand awareness in July 2007 of 97%.

OBI Media-Contact:

OBI Bau- und Heimwerkermärkte GmbH & Co. Franchise Center KG

Corporate Communications & PR

Johanna Meessen

Albert-Einstein-Str. 7-9

D-42929 Wermelskirchen

Phone +49 (0) 2196 / 76 1509

Fax: +49 (0) 2196 / 76 1019

Email: johanna.meessen@obi.de