Signing of Declaration with HITA

Press-release Krasnodar December 23, 2013 OJSC "Magnit" Has Signed the Declaration of Mutual Understanding and StrategicCooperation with the Hungarian Investment and Trade Agency (HITA) Krasnodar, December 23, 2013: OJSC "Magnit", Russia's largest retailer (the"Company"; MICEX and LSE: MGNT) has signed the Declaration of mutualunderstanding and strategic cooperation with the Hungarian Investment and TradeAgency (HITA). In connection with the Company's plans to optimize its logistics processes inthe area of the product delivery from the EU countries to "Magnit" stores, theDeclaration of mutual understanding and strategic cooperation (the Declaration)has been signed between OJSC "Magnit" and the Hungarian Investment and TradeAgency (HITA) on December 20, 2013. For the above purposes OJSC "Magnit" plans to set up a transport company ineastern Hungary with a fleet of up to 1,000 trucks and the relevant serviceinfrastructure. As a result of its operations in Hungary the Company may createup to 1,500 new jobs. It is important to note that the signing of the Declaration does not oblige theCompany to realize the above listed plans but rather indicates the interest ofboth parties in the new forms of cooperation in order to meet the Company'slogistics needs of the product delivery from the EU. The choice of the country for the logistics cooperation was dictated by thecombination of factors such as geographic location, cooperative attitude of thegovernmental authorities, general economic situation, labour market conditions,current transportation flows from the EU to Russia towards the Company'sfacilities. For further information, please contact: Timothy Post Director, Investor Relations Email: [email protected] Office: +7-861-277-4554 x7600 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 x5101 Mobile: +7-961-511-0202 Direct Line: +7-861-277-4562 Company description: Magnit is Russia's largest retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of September 30,2013, Magnit operated 19 distribution centers and over 7,600 stores (6,783convenience, 178 hypermarkets, and 685 cosmetics) in more than 1,760 cities andtowns throughout 7 federal regions of the Russian Federation. In accordance with its reviewed IFRS consolidated financial statements, Magnithad 1H 2013 revenues of $8.7 billion USD and an EBITDA of $890 million USD.Magnit's local shares are traded on the Moscow Stock Exchange (MICEX: 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 nowEurope's 2nd largest food retailer.