KRASNODAR, November 9, 2007: OJSC “Magnit” (the “Company”; RTS: MGNT) is pleased to announce its unaudited 9M2007 financial results prepared in accordance with IFRS.

During 9M2007 the Company opened 176 stores and increased its selling space by over 13% relative to FY2006 from 522,92 thousand sq. m. to 593,05 thousand sq. m. at the end of 9M2007.

Net revenue of the Company increased by 40,2% YoY in rouble terms, from 47,51 billion rubles in 9M2006 to 66,61 billion rubles in 9M2007.

Net revenue increase was due to increase in selling space by 24,9% in 9M2007 relative to 9M2006 as well as 14,4% increase of like-for-like sales in rouble terms (ex. VAT).

Like-for-like sales increase was in its turn driven by 0,4% traffic inflow (LFL) and 14,0% average ticket increase.

Net revenue in USD terms increased by 48,3% YoY, from 1 734,9 million USD in 9M2006 to 2 572,8 million USD in 9M2007.

Gross margin improved from 17,91% in 9M2006 to 19,25% in 9M2007 due to the better achieved purchasing terms as well as an in-house logistics function improvement.

EBITDA increased by 76,4% from 76,3 million USD in 9M2006 to 134,6 million USD in 9M2007. Net income for 9M2007 increased by 42,2% and amounted to 60,0 million USD vs. 42,2 million USD in 9M2006.

Magnit announces unaudited 9M2007 financial and operating results