OREANDA-NEWS. August 10, 2012. OJSC “Magnit” (the “Company”; MICEX and LSE: MGNT) announces 32% retail sales growth in rubles in July 20121.

During 7M 2012 the Company opened (net) 528 stores. The total store base reached 5,837 stores (5,340 convenience stores, 102 hypermarkets, 6 “Magnit Family” stores and 389 cosmetics stores). Preliminary consolidated unaudited net retail revenue (excl. VAT) in 7M 2012 increased by 32.40% in ruble terms (compared to 7M 2011) and stood at 245,376.27 million rubles.

As a result of amendments to the Federal law 171-FZ “On alcohol turnover^” effective from 01.07.2012 sale of alcohol had to be suspended in 111 stores due to their proximity to markets, sports and medical institutions, crowded areas. Sale of alcohol was temporarily suspended in another 144 stores due to absence of long-term registered rent agreements. Within August-September 2012 sale of alcohol products will be resumed in more than 100 out of them as soon as the registration procedure is completed. Since the beginning of 2012 the Company has renegotiated and registered over 1 000 rent agreements to comply with this requirement effective from July 1, 2012.

We anticipate that the impact of this situation on sales volume and operating efficiency of the Company in 2012 will be immaterial.