Actuality March 26, 2008

Retail chain Magnit has officially declared about the intention to hold the secondary public offering (SPO). As it is said in the company statement 11 300 000 stocks of the additional issue and the existent stocks belonging to Lavreno Ltd. will be offered within the SPO framework.

Currently, Lavreno Ltd. owns 5 160 364 stocks of Magnit. Thus, the total amount of the offered securities makes up 16 460 364 stocks. On March, 25 Magnit stocks cost $49 per security at closing on RTS trade. Therefore, the present market value of the additional emission and the stock interest belonging to Lavreno totals $806,558 mln. Thus, the additional stocks’ cost is $553,7 mln, and Lavreno stock interest is $252,86 mln. If the additional issue stocks and Lavreno securities will be all offered, the SPO volume will total 18,6% from the increased company book value. SPO will list the stocks’ offers to the international institutional investors in the Russian Federation (RF) and other countries. The Group plans to direct the facilities received within the offer at "hypermarket" format development, further expansion of "neighborhood store" format as well as at own logistic basis strengthening.

In April, 2006 Magnit held IPO in RF, within which the investors purchased 18,94% stocks for $368,355 mln. OJSC Magnit book value totals RUR 720 000. It issued 72 mln common stocks with RUR 0,01 par value. According to the last year-end data the Company director general Sergey Galitsky owns 51% company stocks, Labini Investments Ltd., controlled by the chairman of Sistema Bank directors’ board Alexey Bogachev, owns 10,28%, and Lavreno Ltd. owns 7,17%.

OJSC Magnit is one of the largest Russian retail chains. About two thirds of the Company stores operate in the cities with less than 500 000 people. The majority of Magnit stores are located in Southern, Central and Volga Federal Districts. But it also operates in the Northwestern and Ural Federal Districts. As of December 31, 2007 Magnit chain accounted 2194 "neighborhood stores" and three hypermarkets located in more than 700 settlements of RF. The Company overall sales area has increased by 24,6% last year, and accounts 651 600 sq.m. now. OJSC Magnit consolidated proceeds have grown by 46,7% and total $3,676 bln in 2007 as compared to 2006. Net income has increased by 68% and totals $97,4 mln.