Execution of Related Party Transaction

Press-release Krasnodar November 19, 2013 OJSC "Magnit" Announces the Execution of the Related Party Transaction Krasnodar, November 19, 2013: OJSC "Magnit", Russia's largest retailer (the"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of thetransaction on November 19, 2013. The essentials of the transaction are as follows: Type of transaction: Related party transaction Subject of Provision by the Issuer of the guarantee to the credittransaction: agreement №133-VKL/KRD-13 , executed between JSC "Tander" and "Absolut Bank" joint-stock commercial bank (closed joint-stock company) of October 23, 2013 Content of the In accordance with the guarantee agreement №133-DP/KRD-13transaction: of November 19, 2013 the guarantor shall be solidarily liable to the creditor for the obligations of the borrower under the credit agreement executed on the following terms: * The creditline limit: 3,200,000 ,000 (threebilliontwo hundred million)rubles * The granted term of the credit is until October7, 2014 (inclusive) * The borrower shall pay the interest on credit to the creditor at the rate determined by the credit agreement but not exceeding 20% per annum * The liability of the guarantor is limited by the amount of 1,250,000,000.00 (one billion two hundred and fifty thousand million) rubles Deadline for the The guarantee is valid until the borrower fulfillsfulfillment of the obligations to the creditor under the credit agreement butobligation: no longer than 1 (one) year from the credit agreement end date Parties and The creditor - "Absolut Bank" joint-stock commercial bankbeneficiaries under (closed joint-stock company)transaction: The guarantor - open joint-stock company "Magnit" The borrower (beneficiary) -joint-stock company "Tander" The Amount of the The liability of the guarantor is limited by the amount oftransaction in the 1,250,000,000.00 rubles which amounts to 1.8269% of themonetary value and balance sheet assets of the issueras a % of the assetvalue of the issuer: Asset value of the 68,422,621 thousand rublesissuer as of theclosing date of theaccounting periodpreceding theexecution of thetransaction: Date of the November 19, 2013transactionexecution: Information on the The transaction was approved by the Board of Directors(theapproval of the minutes of the Board of Directorsof OJSC "Magnit" w/o No.transaction: of October29, 2013) For further information, please contact: Timothy Post Director, Investor Relations Email: [email protected] Office: +7-861-277-4554 x7600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562 Dina Svishcheva Deputy Director, Investor Relations Email: [email protected] Office: +7-861-277-45-54 x5101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 Company description: Magnit is Russia's largest retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of September 30,2013, Magnit operated 19 distribution centers and over 7,600 stores (6,783convenience, 178 hypermarkets, and 685 cosmetics) in more than 1,760 cities andtowns throughout 7 federal regions of the Russian Federation. In accordance with its reviewed IFRS consolidated financial statements, Magnithad 1H 2013 revenues of $8.7 billion USD and an EBITDA of $890 million USD.Magnit's local shares are traded on the Moscow Stock Exchange (MICEX: MGNT) andits GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit ratingfrom Standard & Poor's of BB. Measured by market capitalization, Magnit is nowEurope's 2nd largest food retailer.