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JSFC Sistema (SSA)

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Tuesday 18 April, 2006

JSFC Sistema

Independent Valuation Report on Sistema Real Es...

JSFC Sistema


Sistema (LSE: SSA), the largest private sector consumer services company in
Russia and the CIS, today announced that the regular valuation conducted by
Cushman & Wakefield Stiles & Riabokobylko ('C&WS&R') on Sistema's real estate
portfolio demonstrated that the enlarged portfolio has more than doubled in
value over the past year.

Based on current values as at January 1, 2006, C&WS&R estimated that the
aggregated market value of a 100% share of the freehold or leasehold interest in
the 54 portfolio properties totalled approximately US $ 898.6 million, of which
approximately US$ 709.2 million(1) was attributable to Sistema. This compared to
an estimated current aggregated market value of approximately US$ 316.3 million
as at December 30, 2004 for the then 28 properties in the portfolio, of which
approximately US$ 238.5 million(1) was attributable to Sistema. The 2004
valuation report was also conducted by C&WS&R.

The above January 1, 2006 valuation excludes the 'Big City' commercial office
space development in Central Moscow, which has been analysed on a very
restrictive set of assumptions and should be considered separately from the
valuation as a whole. Based on current values as at January 1, 2006, C&WS&R
estimated the market value of the project to be approximately US$ 460.9 million,
but the attributable value to Sistema is currently unknown as the project is at
an early stage of development. C&WS&R estimated the total market value of the
whole real estate portfolio, including the 'Big City' project, to be
approximately US$ 1,359.5 million, but the value attributable to Sistema is
unclear due to the significant proportion that is made up by the 'Big City'

The valuations stated above represent the aggregate of the current values of the
individual properties, and should not therefore be regarded as valuations of the
entire portfolio as a single lot.

The valuations are also subject to the limitations and assumptions referenced in
the summary of the most recent valuation report, which is now available online
in full at

For further information, please visit or contact:

Sistema Investor Relations        Shared Value Limited
Alexei Kurach                     Matthew Hooper
Tel: +7 495 6292741               Tel. +44 (0) 20 7321 5023       

(1)Sistema's estimate represents the sum of the multiples of: (i) the beneficial
ownerships as at January 1, 2006 and (ii) the market values of the corresponding
properties from the January 1, 2006 C&W&S&R report.

Sistema is the largest private sector consumer services company in Russia and
the CIS, with over 60 million customers. Sistema develops and manages
market-leading businesses in selected service-based industries, including
telecommunications, technology, insurance, banking, real estate, retail and
media. Founded in 1993, the company reported revenues of US$ 5.4 billion for the
first nine months of 2005, and total assets of US$ 12.1 billion as at September
30, 2005. Sistema's shares are listed under the symbol 'SSA' on the London Stock
Exchange, under the symbol 'AFKS' on the Russian Trading System (RTS), and under
the symbol 'SIST' on the Moscow Stock Exchange (MSE).

Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Sistema. You can identify forward looking statements by terms
such as 'expect,' 'believe,' 'anticipate,' 'estimate,' 'intend,' 'will,'
'could,' 'may' or 'might' the negative of such terms or other similar
expressions. We wish to caution you that these statements are only predictions
and that actual events or results may differ materially. We do not intend to
update these statements to reflect events and circumstances occurring after the
date hereof or to reflect the occurrence of unanticipated events. Many factors
could cause the actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others, general
economic conditions, our competitive environment, risks associated with
operating in Russia, rapid technological and market change in our industries, as
well as many other risks specifically related to Sistema and its operations.