Execution of Related Party Transaction

Press-release Krasnodar March 4, 2014 OJSC "Magnit" Announces the Execution of the Related Party Transaction Krasnodar, March 4, 2014: OJSC "Magnit", Russia's largest retailer (the"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of thetransactions on March 4, 2014. The essentials of the transaction are as follows: Type of transaction: Related party transaction Subject of Provision by the Issuer of the guarantee underthe Atransaction: greement №29-15/1/415 on the opening of the revolving credit lineas of March4, 2014, executed between JSC "Tander" and Open joint-stock company "Sberbank of Russia" (OJSC "Sberbank of Russia") Content of the In accordance with the guarantee agreement №29-15/1/415n 1transaction: as of March 4, 2014 the guarantor shall be solidarily liable to the creditor for the fulfillment of obligations of the borrower under the credit agreement executed on the following terms: * The creditline limit: 4,500,000,000 (fourbillion five hundred million) rubles * The granted term of the credit is until March 3, 2017 (inclusive) * The borrower shall pay the interest on credit to the creditor at the rate determined by the credit agreement but not exceeding 12% per annum Deadline for the The term of validity of the guarantee- until March 3, 2020;fulfillment of the prior to the specified term the guarantee is terminatedobligation: upon fulfillment of all obligations under the Credit agreement by the Borrower, or upon fulfillment of obligations under the Agreement by the Guarantor or to the extent otherwise stipulated by the legislation of the Russian Federation Parties and The creditor - open joint-stock company "Sberbank ofbeneficiaries under Russia" (OJSC "Sberbank of Russia")transaction: The guarantor - open joint-stock company "Magnit" The borrower (beneficiary) -joint-stock company "Tander" The Amount of the 6,120,000,000 (six billion one hundred and twenty million)transaction in the rubles which amounts to 8.94% of the balance sheet assetsmonetary value and 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 March 4, 2014transactionexecution: Information on the The transaction was approved by the general shareholdersapproval of the meeting of May 24, 2013 (Minutes of the generaltransaction: shareholders meetingof OJSC "Magnit" w/o No. of May 24, 2013) 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 retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of December 31,2013, Magnit operated 22 distribution centers and over 8,000 stores (7,200convenience, 207 hypermarkets, and 686 cosmetics) in more than 1,868 cities andtowns throughout 7 federal regions of the Russian Federation. In accordance with the unaudited IFRS management accounts for 2013, Magnit hadrevenues of $18,202 million USD and an EBITDA of $2,032 million USD. Magnit'slocal shares are traded on the Moscow Stock Exchange (MICEX: MGNT) and its GDRson the London Stock Exchange (LSE: MGNT) and it has a credit rating fromStandard & Poor's of BB. Measured by market capitalization, Magnit is nowEurope's 2nd largest retailer.