OJSC MAGNIT: Execution of Related Party Transaction

 Press-release  Krasnodar  June 24, 2014  OJSC "Magnit" Announces the Execution of the Related Party Transaction  Krasnodar, June 24, 2014: OJSC "Magnit", Russia's largest food retailer (the "Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the transaction on June 23, 2014.  The essentials of the transaction are as follows:  Type of transaction: Related party transaction                                                                                                               Subject of           Provision by the Issuer of the guarantee underthe          transaction:         revolvingcredit line agreement №KRD/RK/003/14as of  June23,                         2014, executed between JSC "Tander" and OJSC JSCB "ROSBANK                      "                                                                                                                                        Content of the       In accordance with the guarantee agreement  №KRD/PR/052/14  transaction:         as of June23, 2014the Guarantor shall be gratuitously                              liable to the Creditorto the extent provided by this                            Agreement for the performance of obligationsbythe Borrower                    under the Revolving credit line agreement  №KRD/RK/003/14,                          executed between the Borrower and the Creditor in                               Krasnodar as of June 23, 2014,on the following terms:                                                                                                             * The creditamount : 3,400, 000,000 (threebillion four                            hundred million)rubles                                                                                                                                        * The granted term of the credit is until July22, 2015                            (inclusive)                                                                                                                                                   * The Borrower shall pay the interest on credit to the C                          reditor at the rate determined by the Revolving credit                          line agreement but not exceeding 12% per annum                                                                                                                * The liability of the Guarantorfor the performance of                            all obligationsby the Borrowerunder the Credit a                                greement shall belimited to the amount of 3,40                                  0,000,000.00 (threebillion four hundred million)                                rubles                                                                                                                                                        * The guaranteeterminates upon the proper performance of                          obligations by the Borrower under the Credit Agreement                          or the unilateral change of the Credit Agreement                                essentials increasing the liability of theGuarantor                                                                                  Deadline for the     July 22, 2015 (credit maturity)                            fulfillment of the                                                              obligations:                                                                                                                                                 Parties and          The creditor - OJSC JSCB "ROSBANK"                         beneficiaries under                                                             transaction:         The guarantor - open joint-stock company "Magnit"                                                                                                                  The borrower (beneficiary) -joint-stock company "Tander"                                                                                 The amount of the    3,400, 000,000rubles which amounts to 4.16% of the balance transaction in the   sheet assets of the issueras of December 31, 2013          monetary value and                                                              as a % of the asset                                                             value of the issuer:                                                                                                                                         Asset value of the   88,717, 075thousand rubles(as of December 31, 2013)        issuer as of the                                                                closing date of the                                                             accounting period                                                               preceding the                                                                   execution of the                                                                transaction:                                                                                                                                                 Date of the          June23, 2014                                               transaction                                                                     execution:                                                                                                                                                   Information on the   The transaction was approved by the General shareholders   approval of the      meetingof May 29, 2014(Minutes of the general shareholders transaction:         meeting of OJSC "Magnit" w/o No. of May 29, 2014)           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: +7-861-277-4562                                                                                          Dina Svishcheva                         Deputy Director, Investor Relations                                                Email: Chistyak@magnit.ru                                                       Office: +7-861-277-45-54 x 15101                                                Mobile: +7-961-511-0202                                                         Direct Line: +7-861-277-4562             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.    END  -0- Jun/24/2014 06:00 GMT    
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