KRASNODAR, May 13, 2008: OJSC “Magnit” (the “Company”; RTS, MICEX and LSE: MGNT) is pleased to release its 1Q2008 unaudited operating and financial results prepared in accordance with IFRS.

During 1Q2008 the Company added 41 stores (39 convenience stores and 2 hypermarkets) and increased its selling space by 23.5% relative to 1Q2007 from 546.5 thousand sq. m. to 674.9 thousand sq. m. at the end of 1Q2008.

Net revenue of the Company increased by 48.6% YoY from 781.2 million US$ in 1Q07 to 1,161.2 million US$ in 1Q08. Net revenue increase was due to increase in selling space as well as 27.87% increase of like-for-like sales (excl. VAT).

Gross margin improved from 18.8% in 1Q07 to 20.8% in 1Q08 primarily due to better purchasing terms as well as an in-house logistics function improvement. EBITDA increased by 93.6% from 36.6 million US$ in 1Q07 to 70.8 million US$ in 1Q08.

Net income for 1Q08 increased by 71.4% and amounted to 28.5 million US$ vs. 16.6 million US$ in 1Q08. Sergey Galitsky, the Company’s CEO, provided the following comments on the published 2007 results:

“In first quarter we achieved positive results. Compared to 1Q2007 we managed to improve the efficiency of our business. The figures fit in with our business plan and we hope that this trend will continue”.

Magnit announces unaudited 1Q2008 operating and financial results