OREANDA-NEWS. OJSC "Magnit", Russia's largest food retailer (the "Company", the "Issuer"; MICEX and LSE: MGNT), announces the execution of the transaction on October 13, 2014.

The essentials of the transaction are as follows:

Type of transaction:

Related party transaction

Subject of transaction:

Provision by the Issuer of the guarantee under the "Revolving credit line " credit agreement JMKRD-009/VKL-2014 of October 9, 2014 (hereinafter -the credit agreement) executed between JSC "Tander" and "Absolut Bank" joint-stock commercial bank (open joint-stock company)

Content of the transaction:

In accordance with the guarantee agreement M KRD-009/DP-2014 of October 13, 2014 the guarantor shall be solidarily liable to the creditor for the obligations of the borrower under the credit agreement executed on the following terms: • The credit line limit: 3,200,000,000 (three billion two hundred million) rubles • The granted term of the credit is until October 7, 2015 (inclusive) • The borrower shall pay the interest on credit to the creditor at the rate determined by the credit agreement but not exceeding 20% per annum

Deadline for the fulfillment of the obligation:

The guarantee is valid until the borrower fulfills obligations to the creditor under the credit agreement but no longer than 1 (one) year from the credit agreement end date. The guarantee terminates upon the expiration of the indicated period if within this period the creditor does not make a claim against the guarantor and in accordance with the legislation of the Russian Federation.

Parties and beneficiaries under transaction:

The creditor - "Absolut Bank" joint-stock commercial bank (open joint-stock company) 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:

4,000,000,000 (four billion) rubles which amounts to 5.683% 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:

October 13, 2014

Information on the approval of the transaction:

The transaction was approved by the general shareholders meeting of May 29, 2014 (the minutes of the annual general shareholders meeting of OJSC "Magnit"Mw/n of May 30, 2014)