Execution of Related Party Transaction

Press-release Krasnodar October 13, 2014 OJSC "Magnit" Announces the Execution of the Related Party Transaction Krasnodar, October 13, 2014: OJSC "Magnit", Russia's largest food retailer (the"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of thetransaction on October 13, 2014. The essentials of the transaction are as follows: Type of transaction: Related party transaction Subject of Provision by the Issuer of the guarantee under thetransaction: "Revolving credit line" credit agreement №KRD-009/VKL -2014 of October 9, 2014 (hereinafter - the credit agreement)executed between JSC "Tander" and "Absolut Bank" joint-stock commercial bank (openjoint-stock company.) Content of the In accordance with the guarantee agreement №KRD-009/DPtransaction: -2014 of October13 , 2014the 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 (three billion two hundred million) rubles * The granted term of the credit is until October 7, 2015(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 Deadline for the The guarantee is valid until the borrower fulfillsfulfillment of the obligations to the creditor under the credit agreementobligation: but no longer than 1 (one) year from the credit agreement end date. The guarantee terminates upon the expiration of the indicated period if within this period the creditor does not make a claim against the guarantor and in accordance with the legislation of the Russian Federation. Parties and The creditor - "Absolut Bank" joint-stock commercialbeneficiaries under bank (open joint-stock company)transaction: The guarantor - open joint-stock company "Magnit" The borrower (beneficiary) -joint-stock company "Tander" The Amount of the 4,000, 000,000 (four billion)rubles which amounts to 5.transaction in the 683% of the balance sheet assets of the issuermonetary value and asa % of the asset valueof the issuer: Asset value of the 70,383, 864 thousand rublesissuer as of theclosing date of theaccounting periodpreceding theexecution of thetransaction: Date of the October 13, 2014transaction execution: Information on the The transaction was approved by the general shareholdersapproval of the meetingo f May 29, 2014 (the minutes of the annualtransaction: general shareholders meeting ofOJSC "Magnit" №w/nof May 30, 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 September 30,2014, Magnit operated 25 distribution centers and over 9,020 stores (7,891convenience, 243 hypermarkets, and 886 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.