OREANDA-NEWS. OJSC ЃgMagnitЃh, Russia's largest retailer (the ЃgCompanyЃh; MICEX and LSE: MGNT) announces 29.22% retail sales growth in rubles for 2013.

During December 2013 the Company opened (net) 173 stores. The total store base reached 8,093 stores (7,200 convenience stores, 161 hypermarkets, 46 ЃgMagnit FamilyЃh stores and 686 cosmetics stores).

Preliminary consolidated unaudited net retail revenue (excl. VAT) in 12M 2013 increased by 29.22% in ruble terms (compared to 12M 2012) and stood at 579,528.48 million rubles.

Magnit Sales Growth guidance for 2013 (28-29%) has been achieved with full-year actual Sales Growth of

29.22%.

For the month of December 2013, please note the following reasons for the slowdown year-to-year in the monthly Sales Growth rate:

A decline of consumer activity of households which was reflected in the slowdown of the average ticket growth rates in December 2013 y-o-y. We see a clear trend of customers refocusing towards products in lower price segments. This trend is representative of all product categories and social consumer groups. Nonetheless, it is important to note that there is no abrupt transition from the expensive to the cheap but the changes are of a smooth nature and as a rule one level lower in price category.

A slowdown in sales growth rates for convenience stores, which began on December 20th. The slowdown was due to the following factors:

The growth in the number of large formats now operating in Russia. In the last year there were a massive number of openings, which resulted in a transition of consumer preferences in favor of Hypermarkets and Shopping Centers during the period of the New Year holidays. This fact can be seen by the growth of sales for Magnit's hypermarkets in the above-listed period. This trend is consumer preferences is traditional for food retail globally and has become noticeable in Russia in 2013, in particular.

Abnormally warm weather in the second half of December in the European part of Russia (8 degrees Celsius warmer on average) resulted in higher activity for open markets and grocery fairs compared to the previous years.

We assume that the future New Year's sales growth rate for convenience stores should not exceed 15-17%.

Magnit is pleased by the sales and efficiency results achieved in 2013. Please note that on January 27th, 2014 Magnit will publish a press release with its unaudited full-year Ѓgmanagement accountsЃh results.

December 2013 Key Operating and Financial Highlights:

Ѓ@

December 2013

December 2012

Growth Rate

Number of opened stores, NET

173

407

n/a

convenience stores

140

293

n/a

hypermarkets

9

13

n/a

magnit family

12

3

n/a

cosmetics stores

12

98

n/a

Ѓ@

Total number of stores

8,093

6,884

n/a

convenience stores

7,200

6,046

n/a

hypermarkets

161

126

n/a

magnit family

46

20

n/a

cosmetics stores

686

692

n/a

Ѓ@

Selling space growth, thousand sq.m.

77.51

156.68

n/a

convenience stores

38.90

89.38

n/a

hypermarkets

22.82

39.13

n/a

magnit family

13.24

4.00

n/a

cosmetics stores

2.55

24.17

n/a

Ѓ@

Selling space, eop, thousand sq. m.

3,011.38

2,549.26

18.13%

convenience stores

2,312.20

1,977.46

16.93%

hypermarkets

482.88

387.62

24.58%

magnit family

53.26

24.36

118.67%

cosmetics stores

163.04

159.83

n/a

Ѓ@

Number of customers, million

234.52

196.11

19.59%

convenience stores

204.82

175.30

16.84%

hypermarkets

20.15

15.35

31.29%

magnit family

3.79

1.81

109.64%

cosmetics stores

5.76

3.65

n/a

Ѓ@

Net retail sales, million RUR

63,624.03

51,779.25

22.88%

convenience stores

47,132.34

39,895.20

18.14%

hypermarkets

13,221.25

10,129.09

30.53%

magnit family

1,640.41

732.01

124.10%

cosmetics stores

1,630.03

1,022.96

n/a

Ѓ@

Net retail sales, million USD

1,934.18

1,684.38

14.83%

convenience stores

1,432.83

1,297.79

10.41%

hypermarkets

401.93

329.50

21.98%

magnit family

49.87

23.81

109.43%

cosmetics stores

49.55

33.28

n/a

4Q and 12M 2013 Key Operating and Financial Highlights:

Ѓ@

4Q 2013

4Q 2012

Growth Rate

12„M 2013

12„M 2012

Growth Rate

Number of opened stores, NET

447

765

n/a

1,209

1,575

n/a

convenience stores

417

523

n/a

1,154

1,040

n/a

hypermarkets

13

21

n/a

35

36

n/a

magnit family

16

9

n/a

26

17

n/a

cosmetics stores

1

212

n/a

(6)

482

n/a

Ѓ@

Total number of stores

8,093

6,884

n/a

8,093

6,884

n/a

convenience stores

7,200

6,046

n/a

7,200

6,046

n/a

hypermarkets

161

126

n/a

161

126

n/a

magnit family

46

20

n/a

46

20

n/a

cosmetics stores

686

692

n/a

686

692

n/a

Ѓ@

Selling space growth, th. sq.m.

169.99

288.38

n/a

462.12

579.09

n/a

convenience stores

116.46

164.03

n/a

334.74

339.63

n/a

hypermarkets

34.43

62.93

n/a

95.26

109.17

n/a

magnit family

17.83

10.73

n/a

28.91

20.56

n/a

cosmetics stores

1.27

50.68

n/a

3.21

109.74

n/a

Ѓ@

Selling space, eop, th. sq. m.

3,011.38

2,549.26

18.13%

3,011.38

2,549.26

18.13%

convenience stores

2,312.20

1,977.46

16.93%

2,312.20

1,977.46

16.93%

hypermarkets

482.88

387.62

24.58%

482.88

387.62

24.58%

magnit family

53.26

24.36

118.67%

53.26

24.36

118.67%

cosmetics stores

163.04

159.83

n/a

163.04

159.83

n/a

Ѓ@

Number of customers, million

656.92

549.44

19.56%

2,465.05

2,033.43

21.23%

convenience stores

579.17

497.07

16.52%

2,193.87

1,863.62

17.72%

hypermarkets

53.45

39.47

35.42%

193.06

137.69

40.21%

magnit family

9.57

4.34

120.63%

29.60

8.87

233.84%

cosmetics stores

14.73

8.56

n/a

48.52

23.25

n/a

Ѓ@

Net retail sales, million RUR

162,467.00

129,153.84

25.79%

579,528.48

448,486.20

29.22%

convenience stores

123,796.88

102,481.13

20.80%

450,801.48

364,236.40

23.77%

hypermarkets

31,180.71

22,881.23

36.27%

106,175.58

75,418.70

40.78%

magnit family

3,695.40

1,583.85

133.32%

10,678.07

3,098.58

244.61%

cosmetics stores

3,794.01

2,207.63

n/a

11,873.35

5,732.51

n/a

Ѓ@

Net retail sales, million USD

4,993.85

4,155.97

20.16%

18,196.70

14,424.02

26.16%

convenience stores

3,805.22

3,297.68

15.39%

14,154.78

11,714.42

20.83%

hypermarkets

958.42

736.28

30.17%

3,333.82

2,425.58

37.44%

magnit family

113.59

50.97

122.87%

335.28

99.66

236.44%

cosmetics stores

116.62

71.04

n/a

372.81

184.37

n/a

LFL Results

LFL growth 4Q 2013 - 4Q 20124

Convenience stores

Hypermarkets

Magnit Family

Cosmetics stores

Total

Average ticket (excl. VAT), RUR

4.21%

2.13%

1.77%

4.92%

4.29%

Traffic

(2.03)%

1.75%

(2.78)%

26.69%

(1.52)%

Revenue, RUR

2.09%

3.92%

(1.06)%

32.92%

2.71%

LFL growth 12„M 2013 - 12„M 20125

Convenience stores

Hypermarkets

Magnit Family

Cosmetics stores

Total

Average ticket (excl. VAT), RUR

5.35%

2.04%

5.01%

3.72%

5.22%

Traffic

(1.57)%

2.52%

7.41%

10.54%

(1.28)%

Revenue, RUR

3.70%

4.61%

12.80%

14.65%

3.88%

Magnit is Russia's largest retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of December 31, 2013, Magnit operated 22 distribution centers and over 8,000 stores (7,200 convenience, 207 hypermarkets, and 686 cosmetics) in more than 1,868 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with its reviewed IFRS consolidated financial statements, Magnit had 1H 2013 revenues of USD 8.7 billion USD and an EBITDA of USD 890 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 now Europe's 2nd largest food retailer.