OREANDA-NEWS. OJSC “Magnit” (the “Company”, “Issuer”; MICEX and LSE: MGNT) is pleased to announce the results of the BOD meeting held on June 3, 2014.

Please be informed that on July 9, 2014 the BOD meeting was held (minutes of the BOD meeting of OJSC “Magnit” are w/o No. of July 9, 2014).

The meeting agenda:

1. Determination of OJSC "Magnit" business priorities.

2. Approval of the related party transactions.

The following BOD members were present: S. Galitskiy, K. Pombukhchan and A. Shkhachemukov. A. Arutyunyan, A. Zayonts, A. Makhnev and A. Pshenichniy provided their written opinions on the items of the agenda of the BOD meeting of OJSC “Magnit”. The number of the BOD members participated in the meeting, including written opinions of A. Arutyunyan, A. Zayonts, A. Makhnev and A. Pshenichniy amounts to not less than half of the number of the BOD members determined by the Charter of the Company.

Quorum to hold the BOD meeting with this agenda is present.

Content of the decisions and voting results:

Item 1 on the agenda:

“To determine OJSC “Magnit” business priorities by means of ratification of the Plans of financial and economic activity of the Company for the third quarter of 2014 (annex ¹1 to the minutes of the BOD meeting)”.

Votes were cast as follows:

A. Arutyunyan - “for”, S. Galitskiy - “for”, A. Zayonts - “for”, A. Makhnev - “for”, K. Pombukhchan - “for”, A. Pshenichniy - “for”, A. Shkhachemukov - “for”.

The decision was made.

Item 2.1 on the agenda:

“To approve the additional agreement to the real estate lease agreement ¹ GK/1599/12 of March 7, 2012, which the Company executed with JSC "Tander" and which is the related party transaction based on the following terms and conditions of the lease agreement including changes introduced by the additional agreement:

Parties of the transaction: Lessor - OJSC “Magnit”, Lessee - JSC “Tander”.

Subject of the transaction: the Lessor shall provide the following real property to the Lessee for a fee for temporary possession and use: non-residential building with the total space of 1391.9 sq. m, cadastral number 61:12:0040333:551, located at the address: 18 K. Marxa street, Zernograd, Zernogradskiy district, Rostov region, Russia.

Lease fee: 1,248,493 (one million two hundred and forty eight thousand four hundred and ninety three) rubles per month including VAT.

Lease period: 10 (ten) years.

The price of the property to the possible disposal of which the transaction is related amounts to less than 2% of the book value of assets of the Company determined on the basis of the accounting statements for the latest accounting period”.

Votes were cast as follows:

A. Arutyunyan - “did not participate in voting”, S. Galitskiy - “did not participate in voting”, A. Zayonts - “for”, A. Makhnev - “for”, K. Pombukhchan - “for”, A. Pshenichniy - “for”, A. Shkhachemukov - “for”.

The decision was made.

Item 2.2 on the agenda:

“To approve the additional agreement to the real estate lease agreement ¹ NvrF/637/12 of April 13, 2012, which the Company executed with JSC "Tander" and which is the related party transaction based on the following terms and conditions of the lease agreement including changes introduced by the additional agreement:

Parties of the transaction: Lessor - OJSC “Magnit”, Lessee - JSC “Tander”.

Subject of the transaction: the Lessor shall provide the following real property to the Lessee for a fee for temporary possession and use: non-residential premises with the total space of 584.5 sq. m, cadastral number 23:47:0113001:408, located at the address: 5 Tobolskaya street, Novorossiysk.

Lease fee: 343,448 (three hundred and forty three thousand four hundred and forty eight) rubles per month including VAT.

Lease period: 10 (ten) years.

The price of the property to the possible disposal of which the transaction is related amounts to less than 2% of the book value of assets of the Company determined on the basis of the accounting statements for the latest accounting period”.

Votes were cast as follows:

A. Arutyunyan - “did not participate in voting”, S. Galitskiy - “did not participate in voting”, A. Zayonts - “for”, A. Makhnev - “for”, K. Pombukhchan - “for”, A. Pshenichniy - “for”, A. Shkhachemukov - “for”.

The decision was made.

Item 2.3 on the agenda:

“To approve the additional agreement to the guarantee agreement ¹KRD/PR/039/14 of May 19, 2014, which the Company (hereinafter - Guarantee) executed with Joint-stock commercial bank “ROSBANK” (open joint-stock company) as security for obligation of Joint-stock company “Tander” (beneficiary) (hereinafter - Borrower) to Joint-stock commercial bank “ROSBANK” (open joint-stock company) (hereinafter - Creditor) under the Bank account agreement ¹0249018/RUB of October 25, 2007 (together with the Additional agreement ¹10 of May 19, 2014) (hereinafter - Credit agreement) which is the related party transaction based on the following terms and conditions of the guarantee agreement including changes introduced by the additional agreement:

1. Maximum credit amount (credit limit): 350,000,000 (three hundred and fifty million) Russian rubles.

2. Deadline of indebtedness continuity (payment period of each overdraft credit): 30 (thirty) calendar days.

3. Term of validity of the Credit agreement: until May 18, 2015 (inclusive).

4. Credit interest rate in ruble terms: the Borrower pays interest to the Bank in the amount of MosPrime OverNight rate increased by the Bank Margin (1.8% (one point eight) percent per annum). Interest rate (including the Bank margin) cannot exceed 12 (twelve) percent per annum (“Maximum interest rate”).

5. Credit terms, procedure of credit providing and redemption of credit amounts, interest and other payments are determined by the Credit agreement.

6. Limit price (amount) of the guarantee agreement: total amount of the Guarantee obligations under the Credit agreement cannot exceed 392,000,000 (three hundred and ninety two million) rubles. In case of nonfulfillment by the Guarantee of the Creditor's requirements for the payment of the corresponding monetary amount (in case of violation of any of the secured obligations by the Borrower) within 5 (five) Bank days from the date of receiving the requirement, the Guarantee shall pay a penalty to the Creditor in the amount of 3% (three) percent of the amount of the corresponding requirement.

The price of the property to the possible disposal of which the transaction is related shall not exceed 2% of the balance sheet assets value of the company determined on the basis of the accounting statement for the last reporting date”.

Votes were cast as follows:

A. Arutyunyan - “did not participate in voting”, S. Galitskiy - “did not participate in voting”, A. Zayonts - “for”, A. Makhnev - “for”, K. Pombukhchan - “for”, A. Pshenichniy - “for”, A. Shkhachemukov - “for”.

The decision was made.