OJSC MAGNIT - May/5M 2014 Results

Press-release

Krasnodar

June 10, 2014

OJSC "Magnit" Announces 28.7% Retail Sales Growth in Rubles for May
2014[1]

Krasnodar, June 10, 2014: OJSC "Magnit", Russia's largest food
retailer (the "Company"; MICEX and LSE: MGNT) announces 28.7% retail sales
growth in rubles for May 2014.

During May 2014 the Company opened (net) 174 stores. The total
store base reached 8,517 stores (7,545 convenience stores, 169 hypermarkets,
51 "Magnit Family" stores and 752 cosmetics stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT)
in 5M 2014 increased by 26.88% in ruble terms (compared to 5M 2013) and stood
at 285,871.77 million rubles.

According to Rosstat food inflation in May 2014 amounted to 1.5%
compared to 1.0% in May 2013, in 5M 2014 6.9% compared to 4.7% in 5M 2013.

May and 5M 2014 Key Operating and Financial Highlights:

                                    May 2014      May 2013      Growth Rate     5М 2014    5М 2013     Growth Rate
Number of opened stores, NET                174            79             n/a          424         362             n/a
               convenience stores           135            78             n/a          345         337             n/a
                     hypermarkets             2             1             n/a            8           9             n/a
                    magnit family             1             2             n/a            5           4             n/a
                 cosmetics stores            36           (2)             n/a           66          12             n/a

Total number of stores                    8,517         7,246             n/a        8,517       7,246             n/a
               convenience stores         7,545         6,383             n/a        7,545       6,383             n/a
                     hypermarkets           169           135             n/a          169         135             n/a
                    magnit family            51            24             n/a           51          24             n/a
                 cosmetics stores           752           704             n/a          752         704             n/a

Selling space, eop, th. sq. m.         3,153.27      2,690.66          17.19%     3,153.27    2,690.66          17.19%
               convenience stores      2,410.98      2,080.16          15.90%     2,410.98    2,080.16          15.90%
                     hypermarkets        504.54        416.66          21.09%       504.54      416.66          21.09%
                    magnit family         59.22         29.40         101.44%        59.22       29.40         101.44%
                 cosmetics stores        178.54        164.44           8.58%       178.54      164.44           8.58%

Selling space growth, th. sq.m.           55.70         27.11             n/a       141.90      141.40             n/a
               convenience stores         40.50         22.69             n/a        98.78      102.70             n/a
                     hypermarkets          6.58          2.01             n/a        21.66       29.04             n/a
                    magnit family          1.14          2.46             n/a         5.96        5.04             n/a
                 cosmetics stores          7.48        (0.05)             n/a        15.50        4.61             n/a

Net retail sales, million RUR         62,195.35     48,326.62          28.70%   285,871.77  225,317.62          26.88%
               convenience stores     47,331.76     37,993.68          24.58%   219,024.81  178,227.22          22.89%
                     hypermarkets     11,691.38      8,740.40          33.76%    52,376.18   39,626.12          32.18%
                    magnit family      1,888.47        755.61         149.93%     8,132.98    3,394.56         139.59%
                 cosmetics stores      1,283.74        836.93          53.39%     6,337.81    4,069.71          55.73%

Net retail sales, million US$[2]       1,780.53      1,546.89          15.10%     8,146.12    7,323.62          11.23%
               convenience stores      1,355.01      1,216.14          11.42%     6,241.27    5,793.01           7.74%
                     hypermarkets        334.70        279.77          19.63%     1,492.50    1,287.99          15.88%
                    magnit family         54.06         24.19         123.53%       231.76      110.34         110.05%
                 cosmetics stores         36.75         26.79          37.18%       180.60      132.28          36.53%

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
March 31, 2014, Magnit operated 23 distribution centers and over 8,200 stores
(7,341 convenience, 215 hypermarkets, and 700 cosmetics) in more than 1,905
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 May 2014 - 34.9308 RUB
per 1 USD, May 2013 - 31.2411 RUB per 1 USD, 5M 2014 - 35.0903 RUB per 1 USD,
5M 2013 - 30.7659 RUB per 1 USD

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