Press-release Krasnodar August 28, 2014 OJSC "Magnit" Announces the Execution of the Related Party Transaction Krasnodar, August 28, 2014: OJSC "Magnit", Russia's largest food retailer (the "Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the transaction on August 28, 2014. The essentials of the transaction are as follows: Type of transaction: Related party transaction Subject of Provision by the Issuer of the guarantee to the credit transaction: agreement "-133-VKL/KRD-13 , executed between JSC "Tander" and "Absolut Bank" joint-stock commercial bank (open joint-stock company) of October23, 2013 Content of the In accordance with the additional agreement "-1 of August transaction: 28, 2014 to the guarantee agreement "-133-DP/KRD-13 of November19 , 2013the guarantor shall be solidarily liable to the creditor for the obligations of the borrower under the credit agreement executed on the following terms: * The creditline limit: 3,200,000,000 (threebillion two hundred million)rubles * The granted term of the credit is until October7, 2014 (inclusive) * The borrower shall pay the interest on credit to the creditor at the rate determined by the credit agreement but not exceeding 20% per annum * The liability of the guarantor is limited by the amount of 4,000,000,000.00 (fourbillion) rubles Deadline for the The guarantee is valid until the borrower fulfills fulfillment of the obligations to the creditor under the credit agreement but obligation: no longer than 1 (one) year from the credit agreement end date Parties and The creditor - "Absolut Bank" joint-stock commercial bank beneficiaries under (open joint-stock company) transaction: The guarantor - open joint-stock company "Magnit" The borrower (beneficiary) -joint-stock company "Tander" The Amount of the The liability of the guarantor is limited by the amount of transaction in the 4,000,000,000.00 rubles which amounts to 5.6831% of the monetary value and balance sheet assets of the issuer as a % of the asset value of the issuer: Asset value of the 70,383, 864thousand rubles issuer as of the closing date of the accounting period preceding the execution of the transaction: Date of the August 28, 2014 (the date of the conclusion of the transaction additional agreement "-1 to the guarantee agreement "-133-DP execution: /KRD-13) Information on the The transaction was approved by the general shareholders approval of the meetingof May 29, 2014(the minutes of the annual general transaction: shareholders meeting of OJSC "Magnit" w/o No.of May30, 2014) For further information, please contact: Timothy Post Director, Investor Relations Email: post@magnit.ru 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: Chistyak@magnit.ru 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 is headquartered in the southern Russian city of Krasnodar. As of June 30, 2014, Magnit operated 24 distribution centers and over 8,600 stores (7,614 convenience, 226 hypermarkets, and 778 drogeries) in approximately 2,000 cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the reviewed IFRS consolidated financial statements for 1H 2014, Magnit had revenues of $9,979 million USD and an EBITDA of $1,045 million USD. Magnit's local shares are traded on the Moscow Stock Exchange (MICEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB. Measured by market capitalization, Magnit is one of the largest retailers in Europe.