Magnit

M&A Activity • Oct 18, 2017

MAGNIT PJSC (MGNT)

18-Oct-2017 / 12:03 CET/CEST

Dissemination of a RegulatoryAnnouncement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

Press Release Krasnodar October 18, 2017

"Magnit" Group of Companies Submitted to the FAS Russia a Request forApproval forthe Transaction toAcquire LLC"ETK"

Krasnodar, Russia (October 18, 2017): Magnit PJSC, one ofRussia's leading retailers (MOEXand LSE:MGNT) announces thefollowing:

"Magnit" Group of Companies and the owners of LLC "ETK" have determined the main parameters of the transaction for"Magnit" Group of Companies to acquire 100% share in the charter capital of LLC "ETK"and have submitted the FAS Russia with the request for approval for the transaction.

LLC "ETK" is the owner of the leasehold rights of selling space in Krasnoyar sk and other towns in the Krasnoyarsk Krai and the Republic of Khakassia, which iscurrently operated by "KrasniyYar",aregionalretailchain ("KrasniyYar"and "Baton"stores).

Currently, "Magnit"Group of Companies and the owners of LLC "ETK"are negotiating the terms and conditions of the transaction which can be completed after the approval of the FAS Russia. If the transaction is successfully completed "Magnit"Group of Companies will become the owner of 100%share in the charter capital of LLC "ETK"and receive the opportunity to open not less than 153 stores and 3 hypermarkets with a total selling space of not less than 62,417 sq. m.

Thisannouncementcontains insideinformation disclosed in accordance with the MarketAbuse Regulation entered into force on July 3, 2016.

Forfurtherinformation, please contact:

Timothy Post	Head ofInvestor Relations Email: post@magnit.ru Office:+7-861-277-4554 x 17600
Dina Svishcheva	DeputyDirector, Investor Relations Email:Chistyak@magnit.ru Office:+7-861-277-4554 x 15101
MediaInquiries	Media Relations Department press@magnit.ru

Company description:

Public Joint Stock Company "Magnit"is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As ofJune 30, 2017, Magnit operated 35 distribution centers and 14,844 stores (11,114 convenience, 430 hypermarkets and 3,300 drogeriestores) in 2,567 citiesand towns throughout 7 federalregions ofthe Russian Federation.

In accordance with thereviewed IFRS consolidated financialstatements for 1H2017, Magnit had revenues of RUB 555 billion and an EBITDAof RUB49 billion. Magnit's localshares are traded on the Moscow Exchange (MOEX:MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB+. Measured by market capitalization, Magnit is one ofthe largest retailers in Europe.

ISIN: US55953Q2021 Category Code: MSCU TIDM: MGNT LEICode: 2534009KKPTVL99W2Y12 OAM Categories:2.2. Inside information Sequence No.: 4758

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