KRASNODAR, October 29, 2008: OJSC “Magnit” (the “Company”; RTS, MICEX and LSE: MGNT) is pleased to release its unaudited 9M 2008 operating and financial results prepared in accordance with IFRS.

During 9M2008 the Company added 208 stores (200 convenience stores and 8 hypermarkets) and increased its selling space by 27.1% relative to 9M 2007 from 593.1 thousand sq. m. to 753.6 thousand sq. m. at the end of 9M 2008.

Net revenue of the Company increased by 50.9% YoY from 2,572.8 million US$ in 9M07 to 3,881.5 million US$ in 9M08. Net revenue increase was due to increase in selling space as well as 27.76% increase of like-for-like sales (excl. VAT).

Gross margin improved from 19.3% in 9M07 to 21.2% in 9M08 primarily due to better purchasing terms as well as an in-house logistics function improvement. EBITDA increased by 97.1% from 134.6 million US$ in 9M07 to 265.3 million US$ in 9M08.

Net income for 9M08 increased by 98.0% and amounted to 118.9 million US$ vs. 60.0 million US$ in 9M08.

We would also like to inform you that within realization of the government program to support Russian retailers VTB and the operational сompany of the Group reached an agreement on credit lines in the total amount of 2,500 bn rub, 0.3 bn rub out of which are already received by the Company.

Sergey Galitskiy, the Company’s CEO, provided the following comments on the published 9M2008 results:

“Crisis is a good time to look at one’s business from all sides. Usually at such times they talk about costs only. We have been working with our expenses for many years and now it pays off. In terms of liquidity, our robustness together with the government support to retailers will help us to keep fast pace of development”.

Magnit announces unaudited 9M 2008 operating and financial results