Krasnodar, May 17, 2010: OJSC “Magnit” (the “Company”; RTS, MICEX and LSE: MGNT) is pleased to release its 1Q 2010 financial results prepared in accordance with IFRS¹.

During 1Q 2010 the Company added 90 stores (89 convenience stores and 1 hypermarket) and increased its selling space by 27.90% in comparison to 1Q 2009 from 854.26 thousand sq. m. to 1,092.61 thousand sq. m. The total store base as of March 31, 2010 reached 3,318 stores (3,293 convenience stores and 25 hypermarkets).

Revenue in rubles increased by 28.09% YoY from 38,263.13 million RUR in 1Q 2009 to 49,009.71 million RUR in 1Q 2010. The top line growth was due to an increase in selling space as well as to a 2.81% increase of like-for-like sales (excl. VAT). Revenue growth in dollar terms amounted to 45.40%: from US$ 1,127.68 million to US$ 1,639.65 million due to significant change of US$ exchange rate².

Gross margin reduced from 23.29% in 1Q 2009 to 21.87% in 1Q 2010. Gross profit in rubles increased by 20.29% from 8,909.74 million RUR (US$ 262.59 million) to 10,717.51 million RUR (US$ 358.56 million).

EBITDA increased by 7.98% from 3,450.08 million RUR (US$ 101.68 million) in 1Q 2009 to 3,725.43 million RUR (US$ 124.64 million) in 1Q 2010. EBITDA margin in 1Q 2010 amounted to 7.60% which is 1.42% below the figure of 1Q 2009 (9.02%). The reduction of EBITDA margin compared to 1Q 2009 was mainly conditioned by spread between reduction of mark-up and improvement of purchasing conditions. Besides, it is important to note that about 0.5% of EBITDA margin in 1Q 2009 was contributed by the additional mark-up on products due to the increase of sale prices on the back of the growth of the dollar exchange rate within the reported period. Net debt/EBITDA ratio (in ruble terms) for 1Q 2010 amounted to 0.27.

1Q 2010 net income increased by 7.21% and amounted to 1,930.41 million RUR (US$ 64.58 million) vs. 1,800.57 million RUR (US$ 53.07 million) in 1Q 2009.

Sergey Galitsky, the Company’s CEO, provided the following comments on the published 1Q 2010 results:

“First results of price investments support the right and well-timed strategy. We see a positive trend of traffic and average ticket, at that we confirm our EBITDA margin guidance of 8-9% for 2010”.

¹ According to management accounts

² Based on the average exchange rate for 1Q 2010 — 29.8903 RUR per 1 USD, 1Q 2009 — 33.9308 RUR per 1 USD

OJSC "Magnit" announces unaudited 1Q 2010 results