OJSC MAGNIT - August/8M 2014 Results

Press-release

Krasnodar

September 9, 2014

OJSC "Magnit" Announces 34.13% Retail Sales Growth in Rubles for
August 2014[1]

Krasnodar, September 9, 2014: OJSC "Magnit", Russia's largest food
retailer (the "Company"; MICEX and LSE: MGNT) announces 34.13% retail sales
growth in rubles for August 2014.

During August 2014 the Company opened (net) 166 stores. The total
store base reached 8,899 stores (7,812 convenience stores, 172 hypermarkets,
62 "Magnit Family" stores and 853 drogeries).

Preliminary consolidated unaudited net retail revenue (excl. VAT)
in 8M 2014 increased by 29.49% in ruble terms (compared to 8M 2013) and stood
at 480,181.89 million rubles.

According to Rosstat food inflation in August 2014 amounted to
-0.3% compared to -0.7% in August 2013, in 8M 2014 7.3% compared to 4.4% in 8M
2013.





[1] According to management accounts

August and 8M 2014 Key Operating and Financial Highlights:

                                    August 2014   August 2013     Growth Rate      8М 2014     8М 2013     Growth Rate
Number of opened stores, NET                166            71             n/a          806         671             n/a
               convenience stores           126            70             n/a          612         642             n/a
                     hypermarkets             2             4             n/a           11          21             n/a
                    magnit family             1             0             n/a           16          10             n/a
                        drogeries            37           (3)             n/a          167         (2)             n/a

Total number of stores                    8,899         7,555             n/a        8,899       7,555             n/a
               convenience stores         7,812         6,688             n/a        7,812       6,688             n/a
                     hypermarkets           172           147             n/a          172         147             n/a
                    magnit family            62            30             n/a           62          30             n/a
                        drogeries           853           690             n/a          853         690             n/a

Selling space, eop, th. sq. m.         3,278.12      2,814.92          16.45%     3,278.12    2,814.92          16.45%
               convenience stores      2,494.66      2,169.17          15.01%     2,494.66    2,169.17          15.01%
                     hypermarkets        512.23        446.93          14.61%       512.23      446.93          14.61%
                    magnit family         71.71         35.44         102.36%        71.71       35.44         102.36%
                        drogeries        199.51        163.39          22.11%       199.51      163.39          22.11%

Selling space growth, th. sq.m.           50.72         31.60             n/a       266.74      265.67             n/a
               convenience stores         37.80         19.60             n/a       182.46      191.71             n/a
                     hypermarkets          4.27         12.49             n/a        29.35       59.32             n/a
                    magnit family          0.92          0.00             n/a        18.45       11.08             n/a
                        drogeries          7.73        (0.49)             n/a        36.47        3.56             n/a

Net retail sales, million RUR         65,569.62     48,883.85          34.13%   480,181.89  370,839.74          29.49%
               convenience stores     49,790.82     37,729.49          31.97%   366,932.88  291,264.79          25.98%
                     hypermarkets     11,823.92      9,137.01          29.41%    87,606.05   66,484.62          31.77%
                    magnit family      2,211.58        958.09         130.83%    14,384.94    6,077.15         136.71%
                        drogeries      1,743.31      1,059.25          64.58%    11,258.02    7,013.17          60.53%

Net retail sales, million US$[2]       1,815.76      1,480.63          22.63%    13,688.00   11,775.90          16.24%
               convenience stores      1,378.82      1,142.78          20.65%    10,459.74    9,249.02          13.09%
                     hypermarkets        327.43        276.75          18.31%     2,497.29    2,111.20          18.29%
                    magnit family         61.24         29.02         111.04%       410.06      192.98         112.49%
                        drogeries         48.28         32.08          50.47%       320.92      222.70          44.10%





[2] Based on the average exchange rate for August 2014 - 36.1113
RUB per 1 USD, August 2013 - 33.0156 RUB per 1 USD, 8M 2014 - 35.0805 RUB per
1 USD, 8M 2013 - 31.4914 RUB per 1 USD





For further information, please contact:

Timothy Post                                                Director, Investor Relations
                                                            Email: [e-mail]
                                                            Office: [phone] x 17600
                                                            Mobile: [phone]
                                                            Direct Line: [phone]

Dina Svishcheva                                             Deputy Director, Investor Relations
                                                            Email: [e-mail]
                                                            Office: [phone] x 15101
                                                            Mobile: [phone]
                                                            Direct Line: [phone]

Company description:

Magnit is Russia's largest food retailer. Founded in 1994, the
company is headquartered in the southern Russian city of Krasnodar. As of June
30, 2014, Magnit operated 24 distribution centers and over 8,600 stores (7,614
convenience, 226 hypermarkets, and 778 drogeries) in approximately 2,000
cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the reviewed IFRS consolidated financial
statements for 1H 2014, Magnit had revenues of $9,979 million USD and an
EBITDA of $1,045 million USD. Magnit's local shares are traded on the Moscow
Stock Exchange (MICEX: MGNT) and its GDRs on the London Stock Exchange (LSE:
MGNT) and it has a credit rating from Standard & Poor's of BB. Measured by
market capitalization, Magnit is one of the largest retailers in Europe.

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