OREANDA-NEWS. OJSC “Magnit”, Russia's largest retailer (the “Company”, “Issuer”; MICEX and LSE: MGNT), is pleased to announce the results of the BOD meeting held on October 29, 2013.

Please be informed that on October 29, 2013 the BOD meeting was held (minutes of the BOD meeting of OJSC “Magnit” are w/o No. of October 29, 2013).

The meeting agenda:

1. Determination of OJSC “Magnit” business priorities.

2. Approval of the related party transactions.

3. Determination of the amount of remuneration for the auditor's services.

4. On serving of the CEO (Chairman of the Management Board) of OJSC “Magnit” on the management body of the other organization.

The following BOD members were present: A. Arutyunyan, V. Butenko, S. Galitskiy, K. Pombukhchan and A. Shkhachemukov.

A. Zayonts and A. Makhnev 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. Zayonts and A. Makhnev 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 fourth quarter of 2013”.

Votes were cast as follows:

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

The decision was made.

Item 2.1 on the agenda:

“To approve the related party transaction between OJSC “Magnit” and Joint-stock commercial bank “Absolut Bank” (open joint-stock company), namely, the Guarantee agreement as security for the obligation of JSC “Tander” (hereafter - “the Borrower”) to Joint-stock commercial bank “Absolut Bank” (open joint-stock company) (hereafter - “the Creditor”) on the basis of the following terms and conditions:

1. Total credit limit for the Credit agreement, which the Borrower plans to execute in future, amounts to not more than 3,200,000,000 (three billion two hundred million rubles);

2. The credit is provided for the maximum of 1 (one) year;

3. Interest rate for the credit use including charges comprises not more than 20% (twenty percent) per annum;

4. Terms, procedure of granting and repayment of the credit, interest and other payments are determined by the Credit agreement;

5. Total amount of obligation of OJSC “Magnit” out of the provided security on any day of the period of validity of the Credit agreement cannot exceed 1,250,000,000 (one billion two hundred and fifty million) rubles.

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

The decision was made.

Item 2.2 on the agenda:

“To approve the conclusion of the Additional agreement to the Contract of the real property lease N°LpF/216/12 of April 30, 2012, which the Company executed with JSC “Tander” and which is the related party transaction, on the basis of the following terms and conditions of the contract of lease as amended by the additional agreement:

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

Subject of the transaction: the Lessor shall provide the Lessee with the following property for the temporary possession and use:

real property: integrated-attached non-residential premises N° 7, with a total space - 532.2 sq.m., letter A, A2, A3, located on the first floor of the multiple dwelling building at the following address: 38 Kosmonavtov street, Lipetsk, Lipetsk region, Russian Federation;

attached non-residential premises N° 9, with a total space - 110 sq.m., letter A2, located on the underground floor of the multiple dwelling building at the following address: 38 Kosmonavtov street, Lipetsk, Lipetsk region, Russian Federation;

power receivers: introductory fitting of non-residential premises of the dwelling building N°38 at 38 Kosmonavtov street, metering device, internal electrical facilities.

Lease payment: 465,150 (four hundred and sixty five thousand one hundred and fifty) 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 shall amount to not less than 2 per cent of the balance sheet assets of the Company determined on the basis of the accounting report for the latest reporting period”.

Votes were cast as follows:

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

The decision was made.

Item 3.1 on the agenda:

“To determine remuneration for the services of the auditor in accordance with IFRS - Ernst & Young LLC for the conduction of the review of the interim condensed financial statements for the 6 months of 2013 in the amount of 444,299 (four hundred and forty four thousand two hundred and ninety nine) US dollars 50 (fifty) cents (incl. VAT) at the exchange rate of the Central bank of the Russian Federation as of the date of payment.”

Votes were cast as follows:

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

The decision was made.

Item 3.2 on the agenda:

“To determine remuneration for the services of the auditor in accordance with IFRS - Ernst & Young LLC for the audit of the consolidated financial statements (including the consolidated financial statements prepared in accordance with the Federal law as of 27.07.2010 N 208-FZ “On consolidated financial statements”) for the year 2013 in the amount of 1,318,409 (one million three hundred and eighteen thousand four hundred and nine) US dollars 30 (thirty) cents (incl. VAT) at the exchange rate of the Central bank of the Russian Federation as of the date of payment”.

Votes were cast as follows:

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

The decision was made.

Item 4 on the agenda:

“To agree to the serving of Sergey Galitskiy, the CEO, Chairman of the Management Board of OJSC “Magnit” as a Member of the Bureau of the Board of Directors in the all-Russian non-governmental organization “The Russian Union of Industrialists and Entrepreneurs”.

Votes were cast as follows:

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

The decision was made.