Procedure of "Magnit" Bonds Placement

Not for release, publication or distribution in Australia, Canada, Japan or theUnited 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 registrationwith the United States Securities and Exchange Commission or an exemption fromregistration under the U.S. Securities Act of 1933, as amended. PJSC Magnit hasnot registered and does not intend to register any part of the offering in theUnited States or to conduct a public offering of any securities in the UnitedStates. This document is only being distributed to and is only directed at (i) personswho are outside the United Kingdom or (ii) to investment professionals fallingwithin Article 19(5) of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005 (the "Order") or (iii) high net worth companies, andother persons to whom it may lawfully be communicated, falling within Article49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) abovetogether being referred to as "relevant persons"). The securities are onlyavailable to, and any invitation, offer or agreement to subscribe, purchase orotherwise acquire such securities will be engaged in only with, relevantpersons. Any person who is not a relevant person should not act or rely on thisdocument or any of its contents. In any EEA Member State that has implemented Directive 2003/71/EC (suchDirective, together with any applicable implementing measures in the relevanthome Member State under such Directive, the "Prospectus Directive") thiscommunication is only addressed to and is only directed at qualified investorsin that Member State within the meaning of the Prospectus Directive. Securities of PJSC Magnit have not been and will not be registered under theapplicable securities laws of Australia, Canada or Japan and, subject tocertain exceptions, may not be offered or sold within Australia, Canada orJapan or to, or for the account or benefit of, citizens or residents ofAustralia, Canada or Japan except under circumstances which will result in thefull compliance with the applicable laws and regulations promulgated by therelevant regulatory authorities in effect at the relevant time. Press-release Krasnodar May 7, 2015 PJSC "Magnit" Announces the Procedure of Bonds Placement and Terms for theOffers' Submission Krasnodar, May 7, 2015: PJSC "Magnit", Russia's largest food retailer (the"Company"; MOEX and LSE: MGNT) announces the procedure of bonds placement andterms for the offers' submission. On May 7, 2015 the Issuer's sole executive body (Chief Executive Officer)determined the procedure of securities' placement which states that theplacement of interest-bearing non-convertible certified bonds of the 02, 03series to the bearer with the obligatory centralized custody, stateregistration numbers 4-02-60525-P / 4-03-60525-P as of 27.12.2012 (hereinafter- Bonds, Bonds of 02, 03 series), shall be exercised via book-building at thefixed price and coupon rate for the first coupon period in accordance with theprocedure defined by the Decisions on the issuance of Bonds of the 02, 03series. The offers to execute the Preliminary agreements shall be delivered to theaddress of CJSC "Sberbank CIB". The offers to execute the Preliminary agreements with the potential acquirersof the Bonds of the 02, 03 series shall be submitted from May 7, 2015 at 12 PMMoscow time to May 7, 2015 at 1 PM Moscow time. The offers contain anobligation to execute the principal agreements with the potential acquirers ofthe Bonds or Participants of the trades acting in their interests on disposalto them of the placed securities. The Bonds placement is scheduled for May 15, 2015 but may take place on anotherdate. The final date of placement is determined in accordance with theDecisions on the issuance and Prospectus of Bonds. The full forms of the offers can be found at the official website of theCompany https://ir.magnit.com/en/information-disclosure/charter-capital-and-issuing-documents/ For further information, please contact: Timothy Post Director, Investor Relations Email: [email protected] Office: +7-861-277-4554 x 17600 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 x 15101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 Company description: Magnit is Russia's largest food retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of March 31, 2015,Magnit operated 28 distribution centers and over 10,000 stores (8,581convenience, 300 hypermarkets, and 1,239 drogerie stores) in approximately2,180 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the audited IFRS consolidated financial statements for 2014,Magnit had revenues of RUB 764 billion and an EBITDA of RUB 86 billion.Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: 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 oneof the largest retailers in Europe. As defined in the Decisions on the issuance of Bonds of the 02, 03 seriesapproved by the Board of directors on October 29, 2012, minutes w/o № as ofOctober 29, 2012.