Krasnodar, October 13, 2014: OJSC “Magnit”, Russia’s largest food retailer (the “Company”; MICEX and LSE: MGNT), announces the execution of the transaction on October 13, 2014.

Please be informed that on October 13, 2014 OJSC “Magnit” (the Lender) and JSC “Tander” (the Borrower) executed the related party transaction, according to which the Lender provides the loan of funds to the Borrower which is to be repaid by the Borrower within the period determined by the contract. The repayment of the loan and (or) the interest may be effected by the Borrower in advance, without written notice to the Lender of the loan repayment, by means of transfer of the loan to the bank details specified in the contract or otherwise not contradictory to the Civil Code of the Russian Federation (offset of mutual claims, assignment of a claim, etc.).

OJSC “Magnit” announces the execution of the related party transaction