KRASNODAR, June, 29 2007: OJSC “Magnit” (the “Company”; RTS: MGNT), Russia’s leading retail chain in terms of number of stores and customers, is pleased to announce the results of the annual general shareholders’ meeting, opening of the two-thousandth convenience store and a new distribution centre.

Dear Ladies and Gentlemen!

We would like to inform you that the annual general shareholders’ meeting of OJSC “Magnit” was held on June, 28 2007. The results of the meeting are as follows:

2006 annual report of OJSC “Magnit”^*, 2006 annual accounting report, including profit and loss statements (profit and loss accounts) of OJSC “Magnit” as well as profit and loss appropriation of OJSC “Magnit” in accordance with FY2006 results were ratified; management board and auditing commission of OJSC “Magnit” were elected, the auditor of OJSC “Magnit” according to the Russian accounting reporting standards and the auditor of OJSC “Magnit” according to the international financial reporting standards were ratified; the returning board was elected; the related party transaction^** was approved; new editions of the charter of OJSC “Magnit”, Regulations on the general shareholders’ meeting of OJSC “Magnit” and Regulations on the individual executing agency (CEO) of OJSC “Magnit” were accepted.

We are pleased to say that on June, 28 2007 the 2000th store opened in Gribanovsky village, Voronezh region. Store premises are owned by the Company with total space of 713 sq.m. and selling space of 580 sq.m.

Today the Company operates in 637 locations in Russian Federation. As of 28.06.07 total selling space makes up 568 245 sq.m.

^* Annual report will be placed on our website upon Registrar’s conclusion

^** Lease agreement between the Leaser (OJSC “Magnit”) and the Lessee (CJSC “Tander”) regarding the transfer of any immovable(s) belonging to the Leaser under the right of ownership to the Lessee

Federal District	Number of stores	Total selling space
Southern	822	227 525
Volga	574	163 893
Central	487	137 812
North-Western	80	28 233
Ural	37	10 782
Total	2 000	568 245

This year the Company plans to open not less than 300 stores in total.

The Company is also glad to let you know that a second phase of a new distribution centre was opened in Bataisk reaching 16 576 sq.m. capacity of this DC. As of 29.06.07 the Company has 7 distribution centers with 113 353 sq.m. total capacity.

Another distribution centre in Chelyabinsk and a second phase of Ivanovo DC are also scheduled to open this year.

City	Federal District	Space, sq.m	Number of serviced stores	Owned/Leased
Bataisk	Southern	16 576	185	Owned
Kropotkin	Southern	30 048	482	Owned
Engels	Volga	19 495	402	Owned
Togliatti	Volga	8 379	279	Leased
Tver	Central	10 714	147	Owned
Oryol	Central	12 472	287	Owned
Ivanovo	Central	15 669	218	Owned
Total		113 353	2 000

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