Related-Party Transaction

Press-release

Krasnodar

July 7, 2011

OJSC "Magnit" announces the result of the related-party transaction

Krasnodar, July 7, 2011: OJSC «Magnit» (the "Company"; RTS, MICEX and LSE: MGNT) announces the result of the transaction executed by the Company on July 6, 2011.

Under the contract of guarantee №ДП-714000/2011/00090 of July 6, 2011 the guarantor undertakes the liability to the lender to be responsible for the fulfillment of the obligations by the borrower in full, including repayment of credit amount, payment of the interest on credit, commissions and penalties under the credit agreement №КС-714000/2011/00051 of April 25, 2011 with the following essentials:

- credit amount: 1 500 000 000 (one billion five hundred million) rubles;

- credit term: until April 23, 2014;

- the borrower shall pay the lender the interest at the rate determined in the credit agreement but not exceeding 12 % per annum;

- the lender has the right to unilaterally change the interest rate;

- the guarantee is provided for the period of 2 191 days from the date of the contract execution.

Price of the transaction is up to 2 039 506 849.32 rubles, that amounts to 5.2550% of the balance sheet value of assets of the issuer.

Parties of the transaction:

the Creditor - Open joint-stock company "VTB" Bank

the Guarantor - Open joint-stock company "Magnit"

the Beneficiary - Joint-stock company "Tander"

The related-party transaction was approved by the annual general shareholders' meeting held on June 23, 2011 (minutes w/№ as of June 23, 2011).

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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 March 31, 2011 the chain consisted of 4,128 convenience stores, 57 hypermarkets and 4 cosmetics stores (drogerie) in 1,239 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, 2011 the Company operated an in-house logistics system consisting of 11 distribution centers, employing automated stock replenishment systems and a fleet of 2,997 vehicles.

In accordance with the audited IFRS consolidated financial statements for the twelve months ended December 31, 2010, the Company recorded consolidated revenue of approximately US$7,777 million and consolidated EBITDA of around US$632 million.