Cherkizovo Group completes acquisition of NAPKO

Moscow, Russia - April 28, 2017 - Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia, announces that it has completed the acquisition of 100% of NAPKO, one of Russia's leading grain producers.

The transaction includes the acquisition of NAPKO's agricultural land bank of 147,000 hectares, located in the Lipetsk, Tambov and Penza regions, as well as the supporting production infrastructure to cultivate the land and store grain. In 2016, NAPKO produced 250,000 tons of grain. The transaction increases Cherkizovo Group's total operating land bank to 287,000 hectares.

Sergey Mikhailov, CEO of Cherkizovo Group, commented: 'The acquisition of NAPKO marks an important step in the development of our grain farming segment, and we are pleased to have completed the transaction in a timely manner. NAPKO's assets are an excellent strategic fit for Cherkizovo Group and will allow us to boost self-sufficiency in grain to 60% over the next few years from 30% at the end of last year. We have a number of synergies with NAPKO, which will help us improve efficiency and reduce our production costs in the grain farming segment. We do not see any potential risks in integrating the acquired assets as they only complement Cherkizovo's business model.'

Total cost of transaction was RUB 4,872 million. An independent valuation of the transaction, conducted by Ernst & Young, confirms that NAPKO fully corresponds with the average market multiples of similar Russian companies. Independent members of Cherkizovo Board have approved the proposed acquisition by Cherkizovo Group's company of 100% participation share in the charter capital of NAPKO from affiliated persons. As part of the transaction, Cherkizovo assumed NAPKO's debt, which stood at RUB 751 million as of March 31, 2017. This acquisition will not violate any of Cherkizovo Group's bank covenants.

Cherkizovo Group

Irina Kravets, PR Manager, +7 (495) 660 2440 ext. 15171, i.kravets@cherkizovo.com

About Cherkizovo Group

Cherkizovo Group is the largest meat and feed producer in Russia. The Group is a top-3 producer in the poultry, pork and processed meat markets and is the largest feed manufacturer in the country.

Cherkizovo Group encompasses 8 full cycle poultry production facilities, 15 modern pork production facilities, 6 meat processing plants, 8 feed mills and more than 287,000 hectares of agricultural land. In 2016, Cherkizovo Group produced 903,000 tons of meat products.

Thanks to its vertically integrated structure, which includes grain growing and storage, feed production, livestock breeding, fattening and slaughtering, and meat processing, alongside a distribution system, the Group has consistently delivered stable, long-term growth of both sales and revenue. The Company's consolidated revenue reached RUB 82.4 bn in 2016.

Cherkizovo Group shares are traded on the London Stock Exchange (LSE) and on the Moscow Exchange (MOEX).