OREANDA-NEWS. OJSC "Magnit", Russia's largest food retailer (the "Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the transaction on August 15, 2014.

The essentials of the transaction are as follows:

Type of transaction:

Major related party transaction

Subject of transaction:

Provision by the Issuer of the guarantee under the Agreement N29-15/1/496 on the opening of the revolving credit line as of August 15, 2014, executed between JSC "lander" and Open joint-stock company "Sberbank of Russia" (OJSC "Sberbank of Russia")

Content of the transaction:

In accordance with the guarantee agreement N29-15/1/496n1 as of August 15, 2014 the guarantor shall be solidarily liable to the creditor for the fulfillment of obligations of the borrower under the credit agreement executed on the following terms:

• The credit line limit: 15,000,000,000 (fifteen billion) rubles

• The granted term of the credit is until August 13, 2017

• The borrower shall pay the interest on credit to the creditor at the rate determined by the credit agreement but not exceeding 12% per annum

Deadline for the fulfillment of the obligation:

The term of validity of the guarantee - until August 13, 2020; prior to the specified term the guarantee is terminated upon fulfillment of all obligations under the Credit agreement by the Borrower, or upon fulfillment of obligations under the Agreement by the Guarantor or to the extent otherwise stipulated by the legislation of the Russian Federation

Parties and beneficiaries under transaction:

The creditor - open joint-stock company "Sberbank of Russia" (OJSC "Sberbank of Russia")

The guarantor - open joint-stock company "Magnit"

The borrower (beneficiary) - joint-stock company "Tander"

The amount of the transaction in the monetary value and as a % of the asset value of the issuer:

20,395,068,493 (twenty billion three hundred and ninety five million sixty eight thousand four hundred and ninety three) rubles which amounts to 28.98% of the balance sheet assets of the issuer

Asset value of the issuer as of the closing date of the accounting period preceding the execution of the transaction:

70,383,864 thousand rubles

Date of the transaction execution:

August 15, 2014

Information on the approval of the transaction:

The transaction was approved by the general shareholders meeting of May 29, 2014 (Minutes of the general shareholders meeting of OJSC "Magnit" w/o No. of

May 30, 2014)