KRASNODAR, March 19, 2008: OJSC “Magnit” (the “Company”; RTS: MGNT) is pleased to release its 12M2007 financial results prepared in accordance with IFRS and audited by Deloitte and Touche.

During 2007 the Company added 304 stores (301 convenience store and 3 hypermarkets) and increased its selling space by over 24.62% relative to FY2006 from

522.92 thousand sq. m. to 651.66 thousand sq. m. at the end of 2007.

Net revenue of the Company increased by 46.77% YoY from 2,505.03 million USD in 2006 to 3,676.56 million USD in 2007. Net revenue increase was due to increase in selling space as well as 21.08% increase of like-for-like sales (excl. VAT).

Gross margin improved from 18.2% in 2006 to 19.9% in 2007 primarily due to better purchasing terms as well as an in-house logistics function improvement. EBITDA increased by 77.40% from 123.59 million USD in 2006 to 219.24 million USD in 2007. Net debt/EBITDA ratio for 2007 amounted to 2.6.

Net income for 2007 increased by 68.02% and amounted to 97.39 million USD vs. 57.97 million USD in 2006. Sergey Galitsky, the Company’s CEO, provided the following comments on the published 2007 results:

“We managed to improve the effectiveness of our business. We do not want to stop and will continue to work on it. We would like to assure our shareholders of the fact that we will be aggressive in our development this year as well”.

Magnit announces audited 12M2007 operating and financial results for the year ended December 31, 2007