OREANDA-NEWS. December 1, 2011. OJSC "Magnit" (the "Company"; RTS, MICEX and LSE: MGNT) announces its intention to offer newly issued ordinary shares in the share capital of the Company ("New Shares") via an accelerated bookbuild placing to Russian and international institutional investors (the "Placement")

In connection with the Placement, the Company has registered with the Russian Federal Financial Market Service (the "FFMS") 10,813,516 New Shares to be placed through an open subscription, including any New Shares to be placed among existing shareholders of record as of October 6, 2011 through the exercise of their statutory pre-emptive rights (the "Offering").

Name of Issuer

Open Joint Stock Company "Magnit," a company incorporated and existing under the laws of the Russian Federation with its registered address at 18 Kolkhoznaya street, Krasnodar, Krasnodar region, Russian Federation.

The Offering

The Company intends to use the net proceeds it receives from the Offering (including the Placement) to finance its capital expenditure program aimed for further expansion of its chain of hypermarkets, as well as the expansion of its convenience store operations, and the further development of its logistics capabilities.

Application will be made to list or have the New Shares admitted to trading on MICEX and RTS or MICEX only, as the case may be, following the completion of the combination of MICEX and RTS. Following admission to trading after the filing of the notice on the results of the Offering (the "Placement Notice") with the FFMS, and receipt of a notification from the FFMS cancelling the separate registration number of the New Shares, which is expected to occur three months and 14 days after the date of the filing of the Placement Notice, the New Shares are expected to be traded on MICEX under the symbol "MGNT". For so long as the New Shares have a separate registration number required under Russian securities laws they will not be fully fungible with the existing ordinary shares (the "Existing Shares"), and it will not be possible to deposit the New Shares into the Company's Global Depositary Receipt ("GDR") facilities against issuance of GDRs. Once the New Shares bear the same registration number as the Existing Shares, if it is determined that the prior publication of a prospectus is required, it will not be possible for shareholders to deposit any ordinary shares into the GDR facilities against issuance of GDRs until such time as a prospectus has been published. In such a case the Company will consider publication of the prospectus. The deposit of ordinary shares against issue of GDRs are also subject to Russian regulatory limitations on the number of shares that may be deposited into the GDR facilities, as well as terms and conditions of the GDR facilities.

The offer price of the New Shares, including the offer price of New Shares to persons entitled to exercise pre-emptive rights, will be approved by the Company's Board of Directors after expiration of the pre-emptive rights period and will be disclosed not later than the date when the offering is announced on the newswire ("Interfax") and on the Company's website at http://www.magnit-info.ru.

The offer price of the New Shares will be the same for all purchasers, including shareholders entitled to exercise pre-emptive rights.