St. Petersburg, Russia; 10 October 2014 – Lenta Ltd. (“Lenta” or the “Company”), one of the largest retail chains in Russia, today announces the improvement of the terms and conditions under the loan agreement with VTB Capital.

Lenta LLC (a main operating subsidiary of Lenta Ltd) has significantly improved terms and conditions of the facility agreement with VTB Capital. Lenta LLC as a borrower entered into a long-term, Rouble-denominated credit facility with VTB Capital in September 2011, which was further amended and restated in January 2013 and April 2013. The facility in the total amount of RUB 40.375 billion, of which RUB 33.075 billion is currently outstanding, is due 2018-2019.

According to the amendment agreement, the margins over MosPrime 3M for all tranches will be reduced, pledge of shares of legal entities under Lenta Ltd. will be released and guarantees in favor of VTB Capital issued by legal entities under Lenta Ltd. will be terminated. In addition, availability period for the undrawn part of the VTB facility of RUB 7.3 billion has been extended to October 2015. The parties have also agreed to increase threshold for financial covenant (Net Debt to EBITDA).

For further information, please visit www.lentainvestor.com, or contact:

Lenta

Anna Meleshina, Director of Public Relations and Government Affairs
+7 812 363 28 53
Anna.Meleshina@lenta.com

Albert Avetikov, Director of Investor Relations
+7 812 363 28 44
Albert.Avetikov@lenta.com

Instinctif Partners

International Media
Mark Walter & Tony Friend
+44 20 7457 2020
Mark.Walter@instinctif.com

Russian Media
Anton Karpov
+7 495 660 05 91
Anton.Karpov@instinctif.com

Leonid Fink
+44 20 7457 2020
Leonid.Fink@instinctif.com

About Lenta
Lenta is one of the largest retail chains in Russia and the country’s second largest hypermarket chain (in terms of 2013 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 87 hypermarkets in 50 cities across Russia and 17 supermarkets in Moscow and the Moscow region, with a total of approximately 570,674 sq.m. of selling space. The average Lenta hypermarket store has selling space of approximately 6,400 sq.m. The Company operates four hypermarket distribution centres.

The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 27,800 people as of 31 December 2013.

The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include TPG Capital, the European Bank for Reconstruction and Development and VTB Capital Private Equity, all of whom are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’.

Forward looking statements:
This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “expected”, “plan”, “goal”, “believe”, or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond Lenta's control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.

Any forward-looking statements made by or on behalf of Lenta speak only as at the date of this announcement. Save as required by any applicable laws or regulations, Lenta undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.