Procedure of bonds placement

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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 with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. 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 securities 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 (such Directive, together with any applicable implementing measures in the relevant home Member State under such Directive, 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.

Securities of 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, Canada or Japan or to, or for the account or benefit of, citizens or residents of Australia, 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

February 17, 2011

OJSC "Magnit" announces the procedure of bonds placement and terms of the offers' submission

Krasnodar, February 17, 2011: OJSC «Magnit» (the "Company"; RTS, MICEX and LSE: MGNT) announces the procedure of bonds placement and terms of the offers' submission.

On February 17, 2011 the issuer's sole executive body (CEO) has determined the procedure of bonds placement which states that the placement of non-convertible interest-bearing certified exchange-traded bonds to the bearer with the obligatory centralized custody of the BO-05 series (identification code 4В02-05-60525-Р) admitted to trading in the course of placement as of February 16, 2010 shall be exercised via book-building at a fixed price and coupon rate for the first coupon period in accordance with the procedure defined by the Resolution authorizing issuance of securities.

The offers to execute the Preliminary agreements[1] are to be delivered to the address of CJSC IC "Troika Dialog".

The term of submission of offers to execute the Preliminary agreements[2] with potential buyers of the exchange-traded bonds of the BO-05 series starts on February 17, 2011 at 11 AM and ends on March 2, 2011 at 3 PM.

Full forms of the offer can be found at the official web-site of the Company:

http://www.magnit-info.ru/investors/charter_capital_issue_document/magnit/

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 December 31, 2010 the chain consisted of 4,002 convenience stores, 51 hypermarkets and 2 cosmetics stores (drogerie) in 1,216 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 December 31, 2010 the Company operated an in-house logistics system consisting of 11 distribution centers, employing automated stock replenishment systems and a fleet of 2,642 vehicles.

In accordance with the unaudited IFRS consolidated financial statements for 1H 2010, the Company recorded consolidated revenue of approximately US$3,448 million and consolidated EBITDA of around US$252 million