Execution of Related Party Transaction

Press-release Krasnodar September 24, 2014 OJSC "Magnit" Announces the Execution of the Related Party Transaction Krasnodar, September 24, 2014: OJSC "Magnit", Russia's largest food retailer(the "Company"; MICEX and LSE: MGNT), announces the execution of thetransaction on September 24, 2014. Please be informed that on September 24, 2014 OJSC "Magnit" (the Lender) andJSC "Tander" (the Borrower) executed the related party transaction, accordingto which the Lender provides the loan of funds to the Borrower which is to berepaid by the Borrower within the period determined by the contract. Therepayment of the loan and (or) the interest may be effected by the Borrower inadvance, without written notice to the Lender of the loan repayment, by meansof transfer of the loan to the bank details specified in the contract orotherwise not contradictory to the Civil Code of the Russian Federation (offsetof mutual claims, assignment of a claim, etc.). The essentials of the transaction are as follows: Type of transaction: related party transaction Subject of transaction: loan of funds Parties and beneficiaries the Lender - open joint-stock company "Magnit"under transaction: the Borrower - joint-stock company "Tander" Maturity: loan maturity date - 22. 09.2017 Transaction amount: 10,000,000,000.00 rubles, which amounts to 14.21% of the balance sheet value of assets of the issuer Interest rate 11.45% per annum The assets value of the issuer 70,383,864 thousand rublesas of the closing date of thereporting period preceding thetransaction execution and inrespect of which the deadlinefor filing the accounting(financial) report has passed: The transaction was approved by the annual general shareholders meeting on May29, 2014 (minutes of the annual general shareholders meeting of OJSC "Magnit" №w/№ of 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 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.