PJSC MAGNIT - Magnit Updates FY 2014 Guidance

Press Release

Krasnodar

October 29, 2014

PJSC "Magnit" Updates Guidance for 2014

Krasnodar, October 29, 2014: PJSC "Magnit", Russia's largest food
retailer (the "Company"; MICEX and LSE: MGNT),updates guidance for 2014.

Based on the analysis of sales of the nine months and the first
half of October this year the management of the Company updates guidance for
2014:

                                     2014              2014             2014

                                  (original)     (updated on July      (new)
                                                     23, 2014)
Sales growth in RUR:               22 - 24%          26 - 29%         31 - 32%
EBITDA margin:                   10.2 - 10.7%      10.6 - 10.9%     11.2 - 11.4%
CAPEX, US$ bn                      1.7 -1.8          unchanged       unchanged
Number of store openings, net
           - convenience stores      1,100           unchanged       unchanged
     - hypermarkets and "Magnit       80             unchanged       unchanged
                        Family"
              - drogerie stores    300 - 350         unchanged       unchanged

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 drogerie stores) 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.