Result of BOD

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

February 4, 2011

OJSC "Magnit" announces information on the decisions of the BOD to approve a major transaction

Krasnodar, February 4, 2011: OJSC «Magnit» (the "Company"; RTS, MICEX and LSE: MGNT) announces information on the decisions of the BOD to approve a major transaction.

Dear Ladies and Gentlemen,

We would like to inform you that the Board of OJSC "Magnit" directors held on February 4, 2011 approved the major transaction (several inter-related transactions).

The essentials of the transaction are as follows:

The subject of the transaction:

Placement by means of open subscription of non-convertible interest-bearing certified exchange-traded bonds of the BO-05, BO-06 series to the bearer with the obligatory centralized custody in the amount of 10,000,000 (ten million) with the nominal value of 1,000 (one thousand) rubles each (hereinafter referred to as - the "Exchange-traded bonds"), with the total nominal value of 10,000,000,000 (ten billion) rubles placed by means of open subscription at the price of 100 (hundred) per cent of the nominal value of the Exchange-traded bonds which amounts to 1,000 rubles each, with the redemption period on 1,092nd (one thousand ninety-second) day after the commencement date of placement of the Exchange-traded bonds of the corresponding series by cash by means of non-cash settlement in the currency of the Russian Federation, providing coupon yield payment in the amount set in accordance with the Decision on securities issue the Prospectus.

Placement price of the Exchange-traded bonds amounts to 100 (hundred) per cent of their nominal value.

The parties of the transaction:

- the issuer of the Exchange-traded bonds - OJSC "Magnit",

- individuals and legal entities - purchasers of the Exchange-traded bonds of OJSC "Magnit".

The price of the transaction:

Nominal value of the Exchange-traded bonds amounts to 10,000,000,000 (ten billion) rubles - which is in aggregation with the coupon yield paid for the whole period of the floatation of the Exchange-traded bonds. The amount of the coupon yield (interest rate) is defined by OJSC "Magnit" pursuant to the terms and procedures stipulated by the Decision on securities issue and the Prospectus.

The minutes of the Board meeting is executed as of February 4, 2011 w/o No.

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