Execution of Related Party Transactions

Press-release Krasnodar December 27, 2013 OJSC "Magnit" Announces the Execution of the Related Party Transactions Krasnodar, December 27, 2013: OJSC "Magnit", Russia's largest retailer (the"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of thetransactions on December 26, 2013. The essentials of the transaction are as follows: Type of Related party transactionstransactions: Subject of Provision by the Issuer of the guarantee underthe Atransactions: greements №29-15/1/399 and №29-15/1/400 on the opening of the revolving credit lineas of December 26, 2013, executed between JSC "Tander" and Open joint-stock company "Sberbank of Russia"(OJSC "Sberbank of Russia") Content of the In accordance with the guarantee agreements №29-15/1/399p1transactions: and №29-15/1/400p1 of December 26, 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: 2,500, 000,000 (two billion five hundred million)rubles * The granted term of the credit is until December 23, 2016(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 December 23,fulfillment of the 2019; prior to the specified term the guarantee isobligation: terminatedupon fulfillment of all obligations under the Credit agreement by the Borrower, or upon fulfillment of obligations under the Agreement by the Guarant or 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 3,398,356,164 (three billion three hundred and ninetytransaction in the eight million three hundred and fifty six thousand onemonetary value and hundred and sixty four) rubles which amounts to 4.96%ofas a % of the asset the balance sheet assets of the issuervalue 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 December 26, 2013transactionexecution: 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 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.