Press-release

    Krasnodar

    May 31, 2016

    PJSC "Magnit" Announces the Execution of the Related Party Transaction

    Krasnodar, May 31, 2016: PJSC "Magnit", Russia's largest food retailer (the
    "Company", the "Issuer"; MOEX and LSE: MGNT), announces the execution of the
    related party transaction on May 31, 2016.

    Please be informed that on May 31, 2016 PJSC "Magnit" (the Lender) and JSC
    "Tander" (the Borrower) executed the related party transaction, according to
    which the Lender provides the loan of funds to the Borrower which is to be
    repaid by the Borrower within the period determined by the contract. The
    repayment of the loan and (or) the interest may be effected by the Borrower in
    advance, without written notice to the Lender of the loan repayment, by means
    of transfer of the loan to the bank details specified in the contract or
    otherwise not contradictory to the Civil Code of the Russian Federation (offset
    of mutual claims, assignment of a claim, etc.).

    The essentials of the transaction are as follows:

    Type of transaction:                related party transaction; material transaction which is 
                                        not major                                                
                                                                                                 
    Subject of transaction:             loan of funds                                            
                                                                                                 
    Parties and beneficiaries under     the Lender - Public Joint Stock Company "Magnit"         
    transaction:                        the Borrower - Joint Stock Company "Tander"              
                                                                                                 
    Maturity:                           loan maturity date - 28.05.2019                          
                                                                                                 
    Transaction amount:                 11,411,000,000 rubles, which amounts to 10.33% of the    
                                        balance sheet value of assets of the issuer              
                                                                                                 
    Interest rate:                      11.3% per annum                                          
                                                                                                 
    The assets value of the issuer as   110,478,878 thousand rubles                              
    of the closing date of the last                                                              
    reporting period preceding the                                                               
    transaction execution:                                                                       

    The transaction was approved by the General shareholders meeting on December
    22, 2015 (minutes of the extraordinary General shareholders meeting of PJSC
    "Magnit" w/o No. of December 24, 2015).

    For further information, please contact:

    Timothy Post                               Head of Investor Relations                  
                                               Email: post@magnit.ru                       
                                               Office: +7-861-277-4554 x 17600             
                                               Mobile: +7-961-511-7678                     
                                               Direct Line: +7-861-277-4562                
                                                                                           
    Investor Relations Office                  MagnitIR@magnit.ru                          
                                               Direct Line: +7-861-277-4562                
                                               Website: ir.magnit.com/                     
                                                                                           
    Media Inquiries                            Media Relations Department                  
                                               press@magnit.ru                             

    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, 2016,
    Magnit operated 34 distribution centers and about 12,434 stores (9,715
    convenience, 382 hypermarkets, and 2,337 drogerie stores) in 2,385 cities and
    towns throughout 7 federal regions of the Russian Federation.

    In accordance with the audited IFRS results for 2015, Magnit had revenues of
    RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are
    traded on the Moscow Stock Exchange (MOEX: 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.