BOD Results

Press-release

Krasnodar

August 31, 2011

OJSC "Magnit" announces the results of the BOD meeting

Krasnodar, August 31, 2011: OJSC "Magnit" (the "Company", "Issuer"; RTS, MICEX and LSE: MGNT) is pleased to announce the results of the BOD meeting held on August 30, 2011.

Dear Ladies and Gentlemen!

We would like to inform you that today the BOD meeting was held (minutes of BOD of OGSC "Magnit" are w/№ of August 30, 2011).

The meeting agenda:

1. Determination of business priorities of OJSC "Magnit",

2. Determination of the position of the OJSC "Magnit" representative at the exercise of the voting right on the JSC "Tander" shares owned by the Company,

3. Approval of the related party transactions.

Decision adopted by the BOD to approve the related party transactions:

On the item 3.1:

"To approve the property sale transaction which the company plans to execute in future and which is the related party transaction with the following essentials:

• parties of the transaction: seller - OJSC "Magnit", buyer - JSC «Tander»;

• subject of the transaction: purchase and sale of property - package transformer substation;

• price (amount) of the transaction: 8,066,480 (eight million sixty six thousand four hundred and eighty) rubles incl. VAT 1,230,480 (one million two hundred and thirty thousand four hundred and eighty) rubles.

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting period".

On the item 3.2:

"To approve the loan agreement (several associated loan agreements) which the company plans to execute in future with the JSC "Tander" and which is the related party transaction with the following essentials:

• parties of the transaction (transactions): lender - OJSC "Magnit", borrower - JSC "Tander";

• subject of the transaction (transactions): loan of funds;

• price (amount) of the transaction (transactions): 378,000,000 (three hundred and seventy eight million) rubles;

• interest rate on loan: not more than 8.1% (eight point one percent) per annum;

• deadline to fulfill obligations under the transaction (transactions): up to 5 (five) years from the time of execution (term of repayment of principal loan and interests).

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting period".

On the item 3.3:

"To approve the transaction which the company plans to execute in future with the JSC "Tander" and which is the related party transaction with the following essentials:

• parties of the transaction: Lessor - OJSC "Magnit", Lessee - JSC "Tander";

• subject of the transaction: The Lessor shall provide real property - non-residential premises №№ 3/,3,8-10,13-17,17/,18,19,23-25 with a total space of 725.6 sq. m., located on the 1st floor of the apartment building at the address: 35-a Obukhova street, Zverevo, Rostov region, Russia - to the Lessee at a fee for temporary possession and use;

• lease fee: 260,000 (two hundred and sixty thousand) rubles, incl. VAT (paid monthly);

• leasing period: 10 (ten) years.

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting period".

On the item 3.4:

"To approve the transaction which the company plans to execute in future with the JSC "Tander" and which is the related party transaction with the following essentials:

• parties of the transaction: Lessor - OJSC "Magnit", Lessee - JSC "Tander";

• subject of the transaction: The Lessor shall provide real property - built-in store, floor plan numbers 1,2,3а,3,4,5,6,7,8,9,10,11,12,13а,13,14,15,16,17 with a total space of 641 sq. m., located on the 1st floor of the apartment building at the address: 30, 50 let Oktyabrya street, Krasniy Sulin, Krasnosulinskiy district, Rostov region, Russia - to the Lessee at a fee for temporary possession and use;

• lease fee: 200,000 (two hundred thousand) rubles, incl. VAT (paid monthly);

• leasing period: 10 (ten) years.

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting period"

On the item 3.5:

"To approve the transaction which the company plans to execute in future with the JSC "Tander" and which is the related party transaction with the following essentials:

• parties of the transaction: Lessor - OJSC "Magnit", Lessee - JSC "Tander";

• subject of the transaction: The Lessor shall provide real property:

- integrated-attached non-residential premises № 7 with a total space of 543.6 (five hundred and forty three point six) sq. m., letter A, A2, A3, located at the address: 38, Kosmonavtov street, Lipetsk, Lipetsk region, Russian Federation;

- attached non-residential premises № 9 with a total space of 110 (one hundred and ten) sq. m., letter A2, located at the address: 38, Kosmonavtov street, Lipetsk, Lipetsk region, Russian Federation; according to the floor plan

to the Lessee at a fee for temporary possession and use;

• lease fee: 235,000 (two hundred and thirty five thousand) rubles, incl. VAT (paid monthly);

• leasing period: 10 (ten) years.

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting period"

On the item 3.6:

"To approve the transaction which the company plans to execute in future with the JSC "Tander" and which is the related party transaction with the following essentials:

• parties of the transaction: Lessor - OJSC "Magnit", Lessee - JSC "Tander";

• subject of the transaction: The Lessor shall provide real property - non-residential attached premises, purpose: non-residential with a total space of 844.7 sq. m., underground floor 1, floor plan numbers underground №1-16; 1 эт. №1-14 located at the address: premises 1,6, Lenina prospect, Liski, Voronezh region - to the Lessee at a fee for temporary possession and use;

• lease fee: 410,000 (four hundred and ten thousand) rubles, incl. VAT (paid monthly);

• leasing period: 10 (ten) years.

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting period"

On the item 3.7:

"To approve the transaction which the company plans to execute in future with the JSC "Tander" and which is the related party transaction with the following essentials:

• parties of the transaction: Lessor - OJSC "Magnit", Lessee - JSC "Tander";

• subject of the transaction: The Lessor shall provide real property - non-residential integrated-attached premises II, VI, letter А, А1, А3, А6, а2, with a total space of 342.7 sq. m., purpose: non-residential, floor 1, floor plan numbers premises II: letter А1:1-2, letter А:3-10; letter А6:11,12, letter а2:13, premises VI: letter А3:1, located at the address: 124, Dachniy prospect, Voronezh, Voronezh region - to the Lessee at a fee for temporary possession and use;

• lease fee: 130,000 (one hundred and thirty thousand) rubles, incl. VAT (paid monthly);

• leasing period: 10 (ten) years.

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting period"

For further information, please contact:

Company description:

Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company "Magnit" is the holding company for a group of entities that operate in the retail trade under the "Magnit" brand. The chain of "Magnit" stores is one of the leading food retail networks in Russia. As of June 30, 2011 the chain consisted of 4,366 convenience stores, 66 hypermarkets and 28 cosmetics stores (drogerie) in 1,286 locations in the Russian Federation.

Approximately two-thirds of the Company's stores are located in cities with a population of less than 500,000 inhabitants. Most of its stores are located in the Southern, North-Caucasian, Central and Volga regions. The Company also operates stores in the North-Western, Urals and Siberian regions.

As of June 30, 2011 the Company operated an in-house logistics system consisting of 12 distribution centers, employing automated stock replenishment systems and a fleet of 3,454 vehicles.

In accordance with the unaudited IFRS consolidated financial statements for 1H 2011, the Company recorded consolidated revenue of approximately US$5,471 million and consolidated EBITDA of around US$359 million.