KRASNODAR, August 26, 2008: OJSC “Magnit” (the “Company”; RTS, MICEX and LSE: MGNT) is pleased to release its reviewed 1H2008 operating and financial results prepared in accordance with IFRS.

During 1H2008 the Company added 124 stores (118 convenience stores and 6 hypermarkets) and increased its selling space by 25.2% relative to 1H2007 from 570.7 thousand sq. m. to 714.6 thousand sq. m. at the end of 1H2008.

Net revenue of the Company increased by 50.8% YoY from 1,638.2 million US$ in 1H07 to 2,469.9 million US$ in 1H08. Net revenue increase was due to increase in selling space as well as 28.97% increase of like-for-like sales (excl. VAT).

Gross margin improved from 18.8% in 1H07 to 20.9% in 1H08 primarily due to better purchasing terms as well as an in-house logistics function improvement. EBITDA increased by 90.2% from 82.8 million US$ in 1H07 to 157.6 million US$ in 1H08.

Net income for 1H08 increased by 75.3% and amounted to 65.9 million US$ vs. 37.6 million US$ in 1H08. Sergey Galitskiy, the Company’s CEO, provided the following comments on the published 1H2008 results:

“90% EBITDA growth is a good result. But this is not only due to the Company’s performance in the second quarter of 2008 — we are facing the effect of the set of measures realized during the year. It is our primary task to work on the net cost of our business, and the achieved results encourage and assure us of the right strategy we follow”.

Magnit announces reviewed 1H2008 operating and financial results