OJSC MAGNIT - July/7M 2014 Results

Press-release

Krasnodar

August 8, 2014

OJSC "Magnit" Announces 33.68% Retail Sales Growth in Rubles for July 2014[1]

Krasnodar, August 8, 2014: OJSC "Magnit", Russia's largest food
retailer (the "Company"; MICEX and LSE: MGNT) announces 33.68% retail sales
growth in rubles for July 2014.

During July 2014 the Company opened (net) 115 stores. The total
store base reached 8,733 stores (7,686 convenience stores, 170 hypermarkets,
61 "Magnit Family" stores and 816 drogeries).

Preliminary consolidated unaudited net retail revenue (excl. VAT)
in 7M 2014 increased by 28.78% in ruble terms (compared to 7M 2013) and stood
at 414,612.27 million rubles.

According to Rosstat food inflation in July 2014 amounted to 0.7%
compared to 0.5% in July 2013, in 7M 2014 7.6% compared to 5.2% in 7M 2013.

July and 7M 2014 Key Operating and Financial Highlights:

                                    July 2014     July 2013     Growth Rate       7М 2014     7М 2013    Growth Rate
Number of opened stores, NET                115            68             n/a          640         600             n/a
               convenience stores            72            66             n/a          486         572             n/a
                     hypermarkets             1             5             n/a            9          17             n/a
                    magnit family             4             4             n/a           15          10             n/a
                        drogeries            38           (7)             n/a          130           1             n/a

Total number of stores                    8,733         7,484             n/a        8,733       7,484             n/a
               convenience stores         7,686         6,618             n/a        7,686       6,618             n/a
                     hypermarkets           170           143             n/a          170         143             n/a
                    magnit family            61            30             n/a           61          30             n/a
                        drogeries           816           693             n/a          816         693             n/a

Selling space, eop, th. sq. m.         3,227.40      2,783.32          15.95%     3,227.40    2,783.32          15.95%
               convenience stores      2,456.86      2,149.56          14.30%     2,456.86    2,149.56          14.30%
                     hypermarkets        507.96        434.45          16.92%       507.96      434.45          16.92%
                    magnit family         70.79         35.44          99.78%        70.79       35.44          99.78%
                        drogeries        191.78        163.87          17.03%       191.78      163.87          17.03%

Selling space growth, th. sq.m.           38.19         35.23             n/a       216.02      234.06             n/a
               convenience stores         23.20         20.18             n/a       144.66      172.11             n/a
                     hypermarkets          3.42         11.36             n/a        25.08       46.83             n/a
                    magnit family          3.76          4.25             n/a        17.53       11.08             n/a
                        drogeries          7.79        (0.57)             n/a        28.74        4.05             n/a

Net retail sales, million RUR         65,708.54     49,155.32          33.68%   414,612.27  321,955.89          28.78%
               convenience stores     50,160.02     38,273.97          31.06%   317,142.07  253,535.30          25.09%
                     hypermarkets     11,773.83      8,989.59          30.97%    75,782.13   57,347.61          32.15%
                    magnit family      2,091.65        915.61         128.44%    12,173.35    5,119.07         137.80%
                        drogeries      1,683.04        976.14          72.42%     9,514.71    5,953.91          59.81%

Net retail sales, million US$[2]       1,896.95      1,501.49          26.34%    11,869.87   10,296.49          15.28%
               convenience stores      1,448.08      1,169.11          23.86%     9,079.41    8,108.33          11.98%
                     hypermarkets        339.90        274.59          23.78%     2,169.56    1,834.04          18.29%
                    magnit family         60.38         27.97         115.90%       348.51      163.71         112.88%
                        drogeries         48.59         29.82          62.95%       272.40      190.41          43.06%



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 audited IFRS consolidated financial
statements for 2013, Magnit had revenues of $18,202 million USD and an EBITDA
of $2,032 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.

---------------------------------

[1] According to management accounts

[2] Based on the average exchange rate for July 2014 - 34.6390 RUB
per 1 USD, July 2013 - 32.7378 RUB per 1 USD, 7M 2014 - 34.9298 RUB per 1 USD,
7M 2013 - 31.2685 RUB per 1 USD

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