Krasnodar, October 18, 2010: OJSC “Magnit” (the “Company”; RTS, MICEX and LSE: MGNT) is pleased to release its 9M 2010 financial results prepared in accordance with IFRS¹.

Sergey Galitskiy, the Company’s CEO, provided the following comments on the published 9M 2010 results:

“We are delighted to present you our 3Q 2010 results demonstrating steady sales and operating efficiency growth at the rates exceeding market expectations.

On the whole the results are in line with our plans. Positive change of LFL traffic and average ticket and rise of new store opening growth rates instill confidence in targeted sales growth of not less than 36% in ruble terms at the year end. At that expectations of EBITDA margin for 2010 are not below 8.2%. Hypermarket opening plans, upgrade of guidance for new convenience stores to 800, increase of investments in transportation and warehousing logistics system allow us to speak of this year CAPEX to stand at 1.2 — 1.3 billion US dollars (excl. VAT)”.

Khachatur Pombukhchan, CFO, commented:

“One of the factors influenced 3Q 2010 financial results was revision of the Company’s position on necessity for VAT refund from merchandise losses. In view of court practice in favor of taxpayers as well as position of Supreme Arbitration Court of the Russian Federation, the Company made a decision to correct its obligations to the budget in the amount of about 470 million rubles”.

During 9M 2010 the Company added (net) 465 stores (454 convenience stores and 11 hypermarkets) and increased its selling space by 28.31% in comparison to 9M 2009 from 967.23 thousand sq. m. to 1,241.09 thousand sq. m. The total store base as of September 30, 2010 reached 3,693 stores (3,658 convenience stores and 35 hypermarkets).

Revenue in rubles increased by 34.99% YoY from 121,867.02 million RUR in 9M 2009 to 164,512.49 million RUR in 9M 2010. The top line growth was due to an increase in selling space as well as to a 6.78% increase of like-for- like sales (excl. VAT). Revenue growth in dollar terms amounted to 44.93%: from US$ 3,751.90 million to US$ 5,437.75 million.²

Gross margin reduced from 23.27% in 9M 2009 to 22.30% in 9M 2010 due to continued large-scale price investments. Gross profit in rubles increased by 29.37% from 28,358.51 million RUR (US$ 873.07 million) to 36,687.96 million RUR (US$ 1,212.67 million).

EBITDA increased by 16.50% from 11,362.47 million RUR (US$ 349.81 million) in 9M 2009 to 13,236.76 million RUR (US$ 437.52 million) in 9M 2010. EBITDA margin in 9M 2010 amounted to 8.05% which is 1.28% below the figure of 9M 2009 (9.32%).

9M 2010 net income increased by 22.30% and amounted to 7,169.41 million RUR (US$ 236.98 million) vs. 5,861.96 million RUR (US$ 180.47 million) in 9M 2009.

¹ According to management accounts

² Based on the average exchange rate for 9M 2010 — 30.2538 RUR per 1 USD, 9М 2009 — 32.4814 RUR per 1 USD

OJSC "Magnit" announces 9М 2010 financial results