We analyse the conductance of an Aharonov-Bohm (AB) ring with a quantum point contact (QPC) that is inserted in one of its arms and which contains a single electron. The conductance of the device is calculated as a function of the one-dimensional (1D) carrier concentration and the value of the magnetic field perpendicular to the plane of the AB ring. The exchange interaction between the electron localized inside QPC and freely propagating electrons is shown to modify the conductance pattern at small carrier concentration significantly, giving rise to the effects related to the formation of the '0.7 feature' in the quantum conductance staircase.

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