#1** THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN. ** МАГНИТ Press-release Krasnodar June, 29 2007 OJSC Magnit : BREAKING NEWS ▪ annual general shareholders meeting " opening of the two-thousandth store opening of a new distribution center KRASNODAR, June, 29 2007: OJSC «Magnit» (the Company; RTS: MGNT), Russia s leading retail chain in terms of number of stores and customers, is pleased to announce the results of the annual general shareholders meeting, opening of the two-thousandth convenience store and a new distribution centre. Dear Ladies and Gentlemen! We would like to inform you that the annual general shareholders meeting of OJSC Magnit was held on June, 28 2007. The results of the meeting are as follows: 2006 annual report of OJSC Magnit, 2006 annual accounting report, including profit and loss statements (profit and loss accounts) of OJSC Magnit as well as profit and loss appropriation of OJSC Magnit in accordance with FY2006 results were ratified; management board and auditing commission of OJSC Magnit were elected, the auditor of OJSC Magnit according to the Russian accounting reporting standards and the auditor of OJSC Magnit according to the international financial reporting standards were ratified; the returning board was elected; the related party transaction was approved; new editions of the charter of OJSC Magnit, Regulations on the general shareholders meeting of OJSC Magnit and Regulations on the individual executing agency (CEO) of OJSC Magnit were accepted. We are pleased to say that on June, 28 2007 the 2000th store opened in Gribanovsky village, Voronezh region. Store premises are owned by the Company with total space of 713 sq.m. and selling space of 580 sq.m. Today the Company operates in 637 locations in Russian Federation. As of 28.06.07 total selling space makes up 568 245 sq.m. ** Annual report will be placed on our website upon Registrars conclusion Lease agreement between the Leaser (OJSC Magnit) and the Lessee (CJSC Tander) regarding the transfer of any immovable(s) belonging to the Leaser under the right of ownership to the Lessee#2Federal District Number of stores Total selling space Southern 822 227 525 Volga 574 163 893 Central 487 137 812 North-Western Ural Total 80 28 233 37 10 782 2 000 568 245 This year the Company plans to open not less than 300 stores in total. The Company is also glad to let you know that a second phase of a new distribution centre was opened in Bataisk reaching 16 576 sq.m. capacity of this DC. As of 29.06.07 the Company has 7 distribution centers with 113 353 sq.m. total capacity. Another distribution centre in Chelyabinsk and a second phase of Ivanovo DC are also scheduled to open this year. City Federal District Space, sq.m Number of serviced stores Owned/Leased Bataisk Kropotkin Southern Southern 16 576 185 Owned 30 048 482 Owned Engels Volga 19 495 402 Owned Togliatti Tver Volga 8 379 279 Leased Central 10 714 147 Owned Oryol Ivanovo Total For further information, please contact: Oleg Goncharov Central 12 472 287 Owned Central 15 669 218 Owned 113 353 2 000 Dina Chistyak Director, Investor Relations e-mail: [email protected] tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 5100 Mob.: +7 (903) 411-40-35 Direct line for investors only: +7 (861) 277-45-62 Manager, Investor Relations e-mail: [email protected] tel. in Krasnodar +7 (861) 277-45-54, 210-98-10 ext. 3201 Mob.: +7-961-511-02-02 Direct line for investors only: +7 (861) 277-45-62 2#33 Company description: Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company Magnit is a holding company for a group of entities that operate in the retail trade under the Magnit name. The chain of Magnit stores is one of the leading operators in the Russian food retail market. As of December 31, 2006 the chain consisted of 1 893 convenience stores in more than 600 locations of Russian Federation. Approximately two-thirds of the Company's stores are located in cities with a population of less than 500 thousand. Most of its stores are located within the Southern, Central and Volga regions. The Company also operates stores in the North West and Urals regions. The Company operates an in-house logistics system consisting of 6 modern distribution centers, employing automated stock replenishment systems and a fleet of over 700 vehicles. In accordance with the audited IFRS consolidated financial statements, in the year ended December 31, 2006, the Company posted consolidated revenues of approximately 2 505 million USD and a consolidated EBITDA of around 123 million USD. THIS PRESS RELEASE IS NOT AN OFFER FOR SALE OF THE SHARES IN THE UNITED STATES. THE SHARES MAY NOT BE OFFERED OR SOLD IN THE UNITED SATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. THE COMPANY HAS NOT REGISTERED AND DOES NOT INTEND TO REGISTER ANY PORTION OF THE OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF THE SHARES IN THE UNITED STATES. THIS PRESS RELEASE IS ONLY FOR DISTRIBUTION TO AND IS ONLY DIRECTED AT: (1) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM; OR (II) TO INVESTMENT PROFESSIONALS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 AS AMENDED (THE ORDER ); OR (III) HIGH NET WORTH ENTITIES FALLING WITHIN ARTICLE 49(2)(A) TO (D) OF THE ORDER; OR (IV) OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED IN ACCORDANCE WITH THE ORDER; OR (V) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS RELEVANT PERSONS ). ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS PRESS RELEASE RELATES IS AVAILABLE ONLY TO, AND WILL BE ENGAGED ONLY WITH, RELEVANT PERSONS. ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS PRESS RELEASE OR ANY OF ITS CONTENTS. THE INFORMATION CONTAINED IN THIS PRESS RELEASE DOES NOT CONSTITUTE A PUBLIC OFFER UNDER ANY APPLICABLE LEGISLATION, OR AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. ANY OFFER OF SECURITIES TO THE PUBLIC THAT MAY BE DEEMED TO BE MADE PURSUANT TO THIS COMMUNICATION IN ANY EUROPEAN ECONOMIC AREA MEMBER STATE THAT HAS IMPLEMENTED DIRECTIVE 2003/71/EC (TOGETHER WITH ANY APPLICABLE IMPLEMENTING MEASURES IN ANY MEMBER STATE, THE PROSPECTUS DIRECTIVE) IS ONLY ADDRESSED TO QUALIFIED INVESTORS IN THAT MEMBER STATE WITHIN THE MEANING OF THE PROSPECTUS DIRECTIVE. THIS PRESS RELEASE IS NOT A PUBLIC OFFER OR ADVERTISING OF SECURITIES IN THE TERRITORY OF THE RUSSIAN FEDERATION AND IS NOT AN OFFER TO PURCHASE OR A PUBLIC INVITATION TO MAKE OFFERS TO PURCHASE ANY SECURITIES IN THE TERRITORY OF THE RUSSIAN FEDERATION. THIS PRESS RELEASE IS NOT AN OFFER OR AN INVITATION TO ENTER INTO AN AGREEMENT WITH OJSC MAGNIT FOR ORGANIZATION OF TRADING OF ANY SECURITIES OF OJSC MAGNIT OUTSIDE THE RUSSIAN FEDERATION.