PJSC MAGNIT - Execution of the Related Party Transaction

Press-release

Krasnodar

July 1, 2015

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

Krasnodar, July 1, 2015: PJSC "Magnit", Russia's largest food retailer (the "Company", the "Issuer"; MOEX and LSE: MGNT), announces the execution of the transaction on June 30, 2015.

The essentials of the transaction are as follows:

Type of transaction:	Related party transaction; material transaction which is not major
Subject of transaction:	Provision by the Issuer of the guarantee under the Agreement on the opening of the revolving credit line ?29-15/1/496 of 15.08.2014 (hereinafter - the "Credit agreement") executed between Open Joint Stock Company "Sberbank of Russia" (hereinafter - the "Creditor") and JSC "Tander" (hereinafter - the "Borrower")
Content of the transaction:	In accordance with the additional agreement to the guarantee agreement ?29-15/1/496?1 of 15.08.2014 the Guarantor shall be solidarily liable to the Creditor for the proper fulfillment of obligations of the Borrower under the Credit agreement executed on the following terms: - the limit amount of the credit line: 15,000,000,000 (Fifteen billion) rubles; - the credit maturity date: August 13, 2017; - the interest rate for the credit use is determined in accordance with the Credit agreement and amounts to not more than 15 (Fifteen) percent per annum
Deadline for the fulfillment of the obligation:	The term of validity of the guarantee - until August 13, 2020; prior to the specified term the guarantee is terminated upon fulfillment of all obligations under the Credit agreement by the Borrower, or upon fulfillment of obligations under the Agreement by the Guarantor or to the extent otherwise stipulated by the legislation of the Russian Federation
Parties and beneficiaries under transaction:	The creditor-Open Joint Stock Company "Sberbank of Russia" The guarantor - Public Joint Stock Company "Magnit" The borrower (beneficiary) - Joint Stock Company "Tander"
The amount of the transaction in the monetary value and as a % of the asset value of the issuer:	19,239,143,836 rubles which amounts to 24.36% of the balance sheet assets of the issuer
Asset value of the issuer as of the closing date of the accounting period preceding the execution of the transaction:	78,978,786 thousand rubles
Date of the transaction execution:	June 30, 2015
Information on the approval of the transaction:	The transaction was approved by the annual General shareholders meeting of June 4, 2015 (Minutes of the annual General shareholders meeting of PJSC "Magnit" w/o No. of June 5, 2015)

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 March 31, 2015, Magnit operated 28 distribution centers and over 10,000 stores (8,581 convenience, 300 hypermarkets and 1,239 drogerie stores) in approximately 2,180 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS consolidated financial statements for 2014, Magnit had revenues of RUB 764 billion and an EBITDA of RUB 86 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: 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.