Execution of the Placement Agreement

These materials are not an offer for sale of securities in the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or an exemption from registration under the Securities Act. OJSC Magnit has not registered and does not intend to register any part of the offering in the United States or to conduct a public offering of any securities in the United States.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "relevant persons"). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

In any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the "Prospectus Directive") this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive.

Shares in OJSC Magnit have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan and, subject to certain exceptions, may not be offered or sold within Australia (other than "exempt investors" as defined in Chapter 6D.2 of the Australian Corporations Act 2001 (Cth) (the "Corporations Act") or "wholesale clients" as defined in Chapter 7 of the Corporations Act), Canada or Japan or to, or for the account or benefit of, citizens or residents of Australia (other than "exempt investors" as defined in Chapter 6D.2 of the Corporations Act or "wholesale clients" as defined in Chapter 7 of the Corporations Act), Canada or Japan except under circumstances which will result in the full compliance with the applicable laws and regulations promulgated by the relevant regulatory authorities in effect at the relevant time.

Press-release

Krasnodar

December 1, 2011

OJSC "MAGNIT" announces execution of the Placement Agreement

Krasnodar, December 1, 2011: "OJSC Magnit" (the "Company"; RTS, MICEX and LSE: MGNT) announces execution of the Placement Agreement.

Dear Ladies and Gentlemen!

In connection with the placement of the Company's ordinary shares each with the nominal value of 0.01 (zero point zero one) (the "Shares") the Company entered into Placement Agreement with Morgan Stanley & Co. International plc and VTB Capital plc (hereafter , the "Placement Agents") on November 30, 2011.

Under the terms and conditions of the Placement Agreement the Placement Agents have agreed, subject to the satisfaction of certain conditions, to procure purchasers for the Shares on the terms of and subject to the conditions set forth in the Placement Agreement.

Entry into the Placement Agreement was approved by the Board of Directors of the Company on November 30, 2011, minutes of meeting w/o No. of November 30, 2011.

For further information, please contact:

Company description:

Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company "Magnit" is the holding company for a group of entities that operate in the retail trade under the "Magnit" brand. The chain of "Magnit" stores is one of the leading food retail networks in Russia. As of September 30, 2011 the chain consisted of 4,593 convenience stores, 76 hypermarkets and 98 cosmetics stores (drogerie) in 1,325 locations in the Russian Federation.

Approximately two-thirds of the Company's stores are located in cities with a population of less than 500,000 inhabitants. Most of its stores are located in the Southern, North-Caucasian, Central and Volga regions. The Company also operates stores in the North-Western, Urals and Siberian regions.

As of September 30, 2011 the Company operated an in-house logistics system consisting of 14 distribution centers, employing automated stock replenishment systems and a fleet of 3,705 vehicles.

In accordance with the unaudited IFRS consolidated financial statements for 1H 2011, the Company recorded consolidated revenue of approximately US$5,471 million and consolidated EBITDA of around US$359 million.