Unaudited 1Q 2012 Financial Results

Press-release

Krasnodar

April 23, 2012

OJSC "Magnit" announces 1Q 2012 results

Krasnodar, April 23, 2012: OJSC "Magnit" (the "Company"; MICEX and LSE: MGNT) is pleased to announce its unaudited 1Q 2012 financial results prepared in accordance with IFRS[1].

During 1Q 2012 the Company added (net) 157 stores (98 convenience stores, 3 hypermarkets and 56 cosmetics stores) and increased its selling space by 36.29% in comparison to 1Q 2011 from 1,485.72 thousand sq. m. to 2,024.90 thousand sq. m. The total store base as of March 31, 2012 reached 5,466 stores (5,104 convenience stores, 96 hypermarkets and 266 cosmetics stores).

Revenue in rubles increased by 34.06% YoY from 75,052.23 million RUR in 1Q 2011 to 100,617.96 million RUR in 1Q 2012. The top line growth was due to an increase in selling space as well as to a 4.12% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 29.66%: from US$ 2,564.15 million to US$ 3,324.65 million.[2]

Gross margin grew from 22.88% in 1Q 2011 to 25.28% in 1Q 2012. Gross profit in rubles increased by 48.16% from 17,169.70 million RUR (US$ 586.60 million) to 25,438.21 million RUR (US$ 840.54 million).

EBITDA increased by 104.83% from 4,740.71 million RUR (US$ 161.97 million) in 1Q 2011 to 9,710.48 million RUR (US$ 320.86 million) in 1Q 2012. EBITDA margin in 1Q 2012 amounted to 9.65% which is 3.33% above the figure of 1Q 2011 (6.32%).

1Q 2012 net income increased by 167.25% and amounted to 4,772.44 million RUR (US$ 157.69 million) vs. 1,785.76 million RUR (US$ 61.01 million) in 1Q 2011.

Sergey Galitskiy, the Company's CEO, provided the following comments on the published results:

"We are glad to present you rather strong 1Q 2012 results which are based primarily on the improvements of purchasing terms and optimizations achieved in the second half 2011. Sustainability of the results depends a lot on the expected growth of the utilities cost in 3Q-4Q and strengthening competition. I would like to note that in the 2Q this year we have started to invest in price attractiveness of our stores more actively. At this stage we reiterate our guidance of sales and efficiency growth for 2012 and will be ready to update them at the end of the first half of the year".

1Q 2012 Key Operating Results

LFL results

1Q 2012 Key Financial Results

Note: net revenue in US$ terms is calculated using the daily exchange rate.

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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, 2012 the chain consisted of 5,104 convenience stores, 96 hypermarkets and 266 cosmetics stores (drogerie) in 1,424 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, 2012 the Company operated an in-house logistics system consisting of 15 distribution centers, employing automated stock replenishment systems and a fleet of 3,922 vehicles.

In accordance with the audited IFRS consolidated financial statements for 2011, the Company recorded consolidated revenue of approximately US$ 11,423 million and consolidated EBITDA of around US$ 939 million.