Procedure of Bonds Placement

Not for release, publication or distribution in Australia, Canada, Japan or the United States.

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

September 17, 2012

OJSC "Magnit" announces the procedure of exchange-traded bonds placement and terms for the offers' submission

Krasnodar, September 17, 2012: OJSC «Magnit» (the "Company"; the "Issuer", MICEX and LSE: MGNT) announces the procedure of exchange-traded bonds placement and terms for the offers' submission.

On September 17, 2012 the Issuer's sole executive body (Chief Executive Officer) has determined the procedure of securities' 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-07 series (identification code 4B02-07-60525-P) admitted to trading in the course of placement as of August 10, 2011 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 Decision on securities' issue.

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

The term for the offers' submission to execute the Preliminary agreements with the potential acquirers of the Exchange-traded bonds of the BO-07 series stipulating the liability for the potential acquirers of the Exchange-traded bonds or Participants of the trades acting in their interests to execute in the future the principal agreements on disposal by them of the placed securities starts on September 17, 2012 at 12 pm and ends on September 18, 2012 at 5 pm.

The full forms of the offer can be found at the official web-site of the Company http://www.magnit-info.ru/en/investors/capital/ 

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 June 30, 2012 the chain consisted of 5,268 convenience stores, 98 hypermarkets, 5 "Magnit Family" stores and 351 cosmetics stores (drogerie) in 1,461 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 June 30, 2012 the Company operated an in-house logistics system consisting of 16 distribution centers, employing automated stock replenishment systems and a fleet of 4,070 vehicles.

In accordance with the reviewed IFRS consolidated financial statements for 1H 2012, the Company recorded consolidated revenue of approximately US$ 6,776 million and consolidated EBITDA of around US$ 671 million.