MERLION announces launch of a new business line

December 1, 2009. Moscow. MERLION announces launch of a new business line. From December 1, 2009 product portfolio of the leading Russian IT market distributor will be supplemented by three product groups new for computer profile: “mobile phones”, “audio/video appliances” and “house appliances”.

Even now “mobile phones” product group is presented in the Company’s range of goods by the world’s leading brands Nokia, Samsung, Sony Ericsson, LG. “Audio/video” group is presented by - Samsung, Sony, Philips, Panasonic, LG, BBK. Small appliances (irons, vacuum-cleaners, kettles, hairdryers) from the global producers – Samsung, Philips, Bosh, Braun, Electrolux, LG, Tefal – is also available for order in the product catalogue. On the immediate horizon (Q1`2010) this group will be supplemented by major appliances and air-conditioning equipment.

The main background for new business line is the increasing interest of MERLION’s partners in goods different from computer equipment. Russian retail trade is developing according to the Eastern scheme (example: there are no single purpose computer stores in Europe) – more than 25% of partners have cell phones and small appliances in their product portfolios. MERLION’s purpose is to become for its partners the universal supplier with the best conditions and services.

Sergey Raskolov, MERLION Sales Director: “The Company has two strategic missions for the nearest two years. The first of them is development and expansion of the IT product mix (computer and digital equipment, accessories, networking equipment etc.), provision of partners with ALL products they are interested in. The second mission is an active, I would rather say aggressive, development of the new line. MERLION is the established leader at the IT distribution market, and entering the new playground the Company will have to show itself as a strong player.”

Large market potential (projected amount of the Russian market of electronics and house appliances shall in 2010 make up about $ 27 billion*) together with MERLION’s available resources necessary for the success give all chances to occupy its niche at the new market in three years already – the share may make up about 6 %.

MERLION’s retail projects - POSITRONICA and CITILINK – already included new product groups in their range of goods. POZITRONICA draws attention to home theaters, DVD-players, Blu-Ray. CITILINK has focused on cell phones and audio/video appliances.

MERLION will give additional notices of structural changes and appointments of personnel carried out in line with new business development.

* Data of GFK TEMAX Technical Market Index, Q2`2009.