Launch of the New Format

Press-release

Krasnodar

May 14, 2012

OJSC "Magnit" announces the launch of a new format

Krasnodar, May 14, 2012: OJSC "Magnit" (the "Company"; MICEX and LSE: MGNT) is pleased to announce the launch of the new format - "Magnit Family".

Dear Ladies and Gentlemen!

We are glad to announce the launch of a new format of stores - "Magnit Family". One of the reasons to expand into this format is to meet the needs of customers in wider assortment and aggressive pricing in premises which are not suitable for a standard hypermarket due to technical features.

Key features of the new format are:

- Selling space of up to 1,500 sq. m.;

- Assortment of more than 6,000 SKUs;

- Expanded fresh zone;

- Limited non-food assortment;

- Own production facilities (ready meals);

- Main technologies of the hypermarket format;

- Pricing of the hypermarket format;

- Location primarily in the leased premises of the shopping and entertainment malls;

Today there are five "Magnit Family" stores - in Krasnodar ("Gallery Krasnodar" shopping and entertainment center), Magnitogorsk, Nizhny Novgorod (Molodezhniy prospect), Gelendzhik (Telmana str.) and Pavlovo, which were reformatted from small hypermarkets.

The number of the new format stores will be increased through opening of new objects as well as reformatting certain convenience stores with excessive selling space for this format (about 1,000 sq .m.) and upside sales potential.

Today as the result of the reformatting the total number of hypermarkets is 94 and the Company confirms its plans to open about 50 new hypermarkets in 2012. Total number of "Magnit Family" stores amounts to 5 and we plan to increase their number up to 13-15 by the year end through reformatting of 4-5 convenience stores and opening 4-5 new objects. Long-term the Company expects to have 100 - 150 stores of this format.

For further information, please contact:

Company description:

Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company "Magnit" (LSE and MICEX: MGNT, S&P: "BB-") 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 March 31, 2012 the chain consisted of 5,104 convenience stores, 91 hypermarkets, 5 "Magnit Family" stores and 266 cosmetics stores (drogerie) in 1,424 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 March 31, 2012 the Company operated an in-house logistics system consisting of 15 distribution centers, employing automated stock replenishment systems and a fleet of 3,922 vehicles.

In accordance with the audited IFRS consolidated financial statements for 2011, the Company recorded consolidated revenue of approximately US$ 11,423 million and consolidated EBITDA of around US$ 939 million.