Press-releaseKrasnodarJuly 9, 2014OJSC "Magnit" Announces the Results of the BOD MeetingKrasnodar, July 9, 2014: OJSC "Magnit" (the "Company", "Issuer"; MICEX and LSE:MGNT) is pleased to announce the results of the BOD meeting held on June 3,2014.Please be informed that on July 9, 2014 the BOD meeting was held (minutes ofthe BOD meeting of OJSC "Magnit" are w/o No. of July 9, 2014).The meeting agenda: 1. Determination of OJSC "Magnit" business priorities. 2. Approval of the related party transactions.The following BOD members were present: S. Galitskiy, K. Pombukhchan and A.Shkhachemukov.A. Arutyunyan, A. Zayonts, A. Makhnev and A. Pshenichniy provided their writtenopinions on the items of the agenda of the BOD meeting of OJSC "Magnit".The number of the BOD members participated in the meeting, including writtenopinions of A. Arutyunyan, A. Zayonts, A. Makhnev and A. Pshenichniy amounts tonot less than half of the number of the BOD members determined by the Charterof the Company.Quorum to hold the BOD meeting with this agenda is present.Content of the decisionsand voting results:Item 1 on the agenda:"To determine OJSC "Magnit" business priorities by means of ratification of thePlans of financial and economic activity of the Company for the third quarterof 2014 (annex №1 to the minutes of the BOD meeting)".Votes were cast as follows:A. Arutyunyan - "for", S. Galitskiy - "for", A. Zayonts - "for", A. Makhnev -"for", K. Pombukhchan - "for", A. Pshenichniy - "for", A. Shkhachemukov -"for".The decision was made.Item 2.1 on the agenda:"To approve the additional agreement to the real estate lease agreement № GK/1599/12 of March 7, 2012, which the Company executed with JSC "Tander" andwhich is the related party transaction based on the following terms andconditions of the lease agreement including changes introduced by theadditional agreement:• Parties of the transaction: Lessor - OJSC "Magnit", Lessee - JSC "Tander".• Subject of the transaction: the Lessor shall provide the following realproperty to the Lessee for a fee for temporary possession and use:non-residential building with the total space of 1391.9 sq. m, cadastral number61:12:0040333:551, located at the address: 18 K. Marxa street, Zernograd,Zernogradskiy district, Rostov region, Russia.• Lease fee: 1,248,493 (one million two hundred and forty eight thousand fourhundred and ninety three) rubles per month including VAT.• Lease period: 10 (ten) years.The price of the property to the possible disposal of which the transaction isrelated amounts to less than 2% of the book value of assets of the Companydetermined on the basis of the accounting statements for the latest accountingperiod".Votes were cast as follows:A. Arutyunyan - "did not participate in voting", S. Galitskiy - "did notparticipate in voting", A. Zayonts - "for", A. Makhnev - "for", K. Pombukhchan- "for", A. Pshenichniy - "for", A. Shkhachemukov - "for".The decision was made.Item 2.2 on the agenda:"To approve the additional agreement to the real estate lease agreement № NvrF/637/12 of April 13, 2012, which the Company executed with JSC "Tander" andwhich is the related party transaction based on the following terms andconditions of the lease agreement including changes introduced by theadditional agreement:• Parties of the transaction: Lessor - OJSC "Magnit", Lessee - JSC "Tander".• Subject of the transaction: the Lessor shall provide the following realproperty to the Lessee for a fee for temporary possession and use:non-residential premises with the total space of 584.5 sq. m, cadastral number23:47:0113001:408, located at the address: 5 Tobolskaya street, Novorossiysk.• Lease fee: 343,448 (three hundred and forty three thousand four hundred andforty eight) rubles per month including VAT.• Lease period: 10 (ten) years.The price of the property to the possible disposal of which the transaction isrelated amounts to less than 2% of the book value of assets of the Companydetermined on the basis of the accounting statements for the latest accountingperiod".Votes were cast as follows:A. Arutyunyan - "did not participate in voting", S. Galitskiy - "did notparticipate in voting", A. Zayonts - "for", A. Makhnev - "for", K. Pombukhchan- "for", A. Pshenichniy - "for", A. Shkhachemukov - "for".The decision was made.Item 2.3 on the agenda:"To approve the additional agreement to the guarantee agreement №KRD/PR/039/14of May 19, 2014, which the Company (hereinafter - Guarantee) executed withJoint-stock commercial bank "ROSBANK" (open joint-stock company) as securityfor obligation of Joint-stock company "Tander" (beneficiary) (hereinafter -Borrower) to Joint-stock commercial bank "ROSBANK" (open joint-stock company)(hereinafter - Creditor) under the Bank account agreement №0249018/RUB ofOctober 25, 2007 (together with the Additional agreement №10 of May 19, 2014)(hereinafter - Credit agreement) which is the related party transaction basedon the following terms and conditions of the guarantee agreement includingchanges introduced by the additional agreement: 1. Maximum credit amount (credit limit): 350,000,000 (three hundred and fifty million) Russian rubles. 2. Deadline of indebtedness continuity (payment period of each overdraft credit): 30 (thirty) calendar days. 3. Term of validity of the Credit agreement: until May 18, 2015 (inclusive). 4. Credit interest rate in ruble terms: the Borrower pays interest to the Bank in the amount of MosPrime OverNight rate increased by the Bank Margin (1.8% (one point eight) percent per annum). Interest rate (including the Bank margin) cannot exceed 12 (twelve) percent per annum ("Maximum interest rate"). 5. Credit terms, procedure of credit providing and redemption of credit amounts, interest and other payments are determined by the Credit agreement. 6. Limit price (amount) of the guarantee agreement: total amount of the Guarantee obligations under the Credit agreement cannot exceed 392,000,000 (three hundred and ninety two million) rubles. In case of non-fulfillment by the Guarantee of the Creditor's requirements for the payment of the corresponding monetary amount (in case of violation of any of the secured obligations by the Borrower) within 5 (five) Bank days from the date of receiving the requirement, the Guarantee shall pay a penalty to the Creditor in the amount of 3% (three) percent of the amount of the corresponding requirement.The price of the property to the possible disposal of which the transaction isrelated shall not exceed 2% of the balance sheet assets value of the companydetermined on the basis of the accounting statement for the last reportingdate".Votes were cast as follows:A. Arutyunyan - "did not participate in voting", S. Galitskiy - "did notparticipate in voting", A. Zayonts - "for", A. Makhnev - "for", K. Pombukhchan- "for", A. Pshenichniy - "for", A. Shkhachemukov - "for".The decision was made.For further information, please contact:Timothy Post Director, Investor Relations Email: post@magnit.ru Office: +7-861-277-4554 x 17600 Mobile: +7-961-511-7678 Direct Line: +7-861-277-4562Dina Svishcheva Deputy Director, Investor Relations Email: Chistyak@magnit.ru Office: +7-861-277-45-54 x 15101 Mobile: +7-961-511-02-02 Direct line: +7 (861) 277-45-62Company description:Magnit is Russia's largest food retailer. Founded in 1994, the company isheadquartered in the southern Russian city of Krasnodar. As of June 30, 2014,Magnit operated 24 distribution centers and over 8,600 stores (7,614convenience, 226 hypermarkets, and 778 cosmetics) in approximately 2,000 citiesand 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) andits GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit ratingfrom Standard & Poor's of BB. Measured by market capitalization, Magnit is oneof the largest retailers in Europe.