MGNT.L Regulatory News (MGNT)

Press-release Krasnodar December 8, 2014 PJSC "Magnit" Announces the Execution of the Related Party Transaction Krasnodar, December 8, 2014: PJSC "Magnit", Russia's largest food retailer (the"Company"; MICEX and LSE: MGNT), announces the execution of the transaction onDecember 8, 2014. Please be informed that on December 8, 2014 PJSC "Magnit" (the Lender) and JSC"Tander" (the Borrower) executed the related party transaction (materialtransaction which is not major), according to which the Lender provides theloan of funds to the Borrower which is to be repaid by the Borrower within theperiod determined by the contract. The repayment of the loan and (or) theinterest may be effected by the Borrower in advance, without written notice tothe Lender of the loan repayment, by means of transfer of the loan to the bankdetails specified in the contract or otherwise not contradictory to the CivilCode of the Russian Federation (offset of mutual claims, assignment of a claim,etc.). The essentials of the transaction are as follows: Type of transaction: material transaction which is not major; related party transaction Subject of transaction: loan of funds Parties and beneficiaries the Lender - public joint-stock company "Magnit"under transaction: the Borrower - joint-stock company "Tander" Maturity: loan maturity date - 06. 12.2017 Transaction amount: 8,756,000,000.00 rubles, which amounts to 10.13 % of the balance sheet value of assets of the issuer Interest rate: 12.00% per annum The assets value of the issuer 86,465,293 thousand rublesas of the closing date of thereporting period preceding thetransaction execution and inrespect of which the deadlinefor filing the accounting(financial) report has passed: The transaction was approved by the General shareholders meeting on September25, 2014 (minutes of the extraordinary shareholders meeting of PJSC "Magnit" №w/n of September 26, 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 isheadquartered in the southern Russian city of Krasnodar. As of September 30,2014, Magnit operated 25 distribution centers and over 9,020 stores (7,891convenience, 243 hypermarkets, and 886 drogerie stores) in approximately 2,000cities and towns throughout 7 federal regions of the Russian Federation. In accordance with the reviewed IFRS consolidated financial statements for 1H2014, Magnit had revenues of $9,979 million USD and an EBITDA of $1,045 millionUSD. 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 creditrating from Standard & Poor's of BB. Measured by market capitalization, Magnitis one of the largest retailers in Europe.