Upgrade of the Outlook by S&P

Press-release Krasnodar May 7, 2014 OJSC "Magnit" Announces the Upgrade of the Outlook by S&P Krasnodar, May 7, 2014: OJSC "Magnit", Russia's largest food retailer (the"Company"; MICEX and LSE: MGNT) announces the revision of the outlook topositive by Standard & Poor's Rating Services. Please be informed that on May 7, 2014 Standard & Poor's Rating Servicesrevised its outlook on Magnit to positive from stable and affirmed the 'BB'long-term rating. The upgrade reflects S&P's expectation that Magnit willmaintain its sound operating performance, despite a tough economic environment. The positive outlook reflects the possibility of an upgrade within the next 12months if Magnit maintains improving operating and financial trends andgenerates material, sustainable free operating cash flow. 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, 2014,Magnit operated 23 distribution centers and over 8,200 stores (7,341convenience, 215 hypermarkets, and 700 cosmetics) in more than 1,905 cities andtowns throughout 7 federal regions of the Russian Federation. In accordance with the audited IFRS consolidated financial statements for 2013,Magnit had revenues of $18,202 million USD and an EBITDA of $2,032 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 oneof the largest retailers in Europe.