OJSC MAGNIT - Execution of Related Party Transaction

Press-release

Krasnodar

October 13, 2014

OJSC "Magnit" Announces the Execution of the Related Party Transaction

Krasnodar, October 13, 2014: OJSC "Magnit", Russia's largest food retailer (the
"Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the
transaction on October 13, 2014.

The essentials of the transaction are as follows:

Type of transaction:   Related party transaction

Subject of             Provision by the Issuer of the guarantee under the
transaction:           "Revolving credit line" credit agreement "-KRD-009/VKL
                       -2014 of October 9, 2014 (hereinafter - the credit
                       agreement)executed between JSC "Tander" and "Absolut
                       Bank" joint-stock commercial bank (openjoint-stock
                       company.)

Content of the         In accordance with the guarantee agreement "-KRD-009/DP
transaction:           -2014 of October13 , 2014the 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 (three billion
                           two hundred million) rubles

                         * The granted term of the credit is until October 7,
                           2015(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

Deadline for the       The guarantee is valid until the borrower fulfills
fulfillment of the     obligations to the creditor under the credit agreement
obligation:            but no longer than 1 (one) year from the credit
                       agreement end date. The guarantee terminates upon the
                       expiration of the indicated period if within this period
                       the creditor does not make a claim against the guarantor
                       and in accordance with the legislation of the Russian
                       Federation.

Parties and            The creditor - "Absolut Bank" joint-stock commercial
beneficiaries under    bank (open joint-stock company)
transaction:
                       The guarantor - open joint-stock company "Magnit"

                       The borrower (beneficiary) -joint-stock company "Tander"

The Amount of the      4,000, 000,000 (four billion)rubles which amounts to 5.
transaction in the     683% of the balance sheet assets of the issuer
monetary value and as
a % of the asset value
of the issuer:

Asset value of the     70,383, 864 thousand rubles
issuer as of the
closing date of the
accounting period
preceding the
execution of the
transaction:

Date of the            October 13, 2014
transaction execution:

Information on the     The transaction was approved by the general shareholders
approval of the        meetingo f May 29, 2014 (the minutes of the annual
transaction:           general shareholders meeting ofOJSC "Magnit" "-w/nof May
                       30, 2014)

For further information, please contact:

Timothy Post                      Director, Investor Relations
                                  Email: [e-mail]
                                  Office: [phone] x 17600
                                  Mobile: [phone]
                                  Direct Line: [phone]

Dina Svishcheva                   Deputy Director, Investor Relations
                                  Email: [e-mail]
                                  Office: [phone] x 15101
                                  Mobile: [phone]
                                  Direct Line: [phone]

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 September 30,
2014, Magnit operated 25 distribution centers and over 9,020 stores (7,891
convenience, 243 hypermarkets, and 886 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.