Execution of Related Party Transaction

Press-release Krasnodar August 28, 2014 OJSC "Magnit" Announces the Execution of the Related Party Transaction Krasnodar, August 28, 2014: OJSC "Magnit", Russia's largest food retailer (the"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of thetransaction on August 28, 2014. 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 (open joint-stock company) of October23, 2013 Content of the In accordance with the additional agreement №1 of Augusttransaction: 28, 2014 to the guarantee agreement №133-DP/KRD-13 of November19 , 2013the 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 (threebillion two 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 4,000,000,000.00 (fourbillion) 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 (open 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 4,000,000,000.00 rubles which amounts to 5.6831% of themonetary value and balance sheet assets of the issueras a % of the assetvalue of the issuer: Asset value of the 70,383, 864thousand rublesissuer as of theclosing date of theaccounting periodpreceding theexecution of thetransaction: Date of the August 28, 2014 (the date of the conclusion of thetransaction additional agreement №1 to the guarantee agreement №133-DPexecution: /KRD-13) Information on the The transaction was approved by the general shareholdersapproval of the meetingof May 29, 2014(the minutes of the annual generaltransaction: shareholders meeting of OJSC "Magnit" w/o No.of May30, 2014) For further information, please contact: Timothy Post Director, Investor Relations Email: [email protected] Office: +7-861-277-4554 x 17600 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 x 15101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 Company description: Magnit is Russia's largest food retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of June 30, 2014,Magnit operated 24 distribution centers and over 8,600 stores (7,614convenience, 226 hypermarkets, and 778 drogeries) in approximately 2,000 citiesand towns throughout 7 federal regions of the Russian Federation. In accordance with the reviewed IFRS consolidated financial statements for 1H2014, Magnit had revenues of $9,979 million USD and an EBITDA of $1,045 millionUSD. Magnit's local shares are traded on the Moscow Stock Exchange (MICEX:MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a creditrating from Standard & Poor's of BB. Measured by market capitalization, Magnitis one of the largest retailers in Europe.