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JSFC Sistema (SSA)

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Monday 03 October, 2005

JSFC Sistema


JSFC Sistema

Sistema Increases Stakes in Five Russian Energy Companies for US$ 96.8 Million

Sistema (LSE:SSA), the largest private sector consumer services company in
Russia and the CIS, announced today that it has increased its stakes in five out
of seven energy companies in the Republic of Bashkortostan in the Ural Mountains
in which it had previously acquired minority shareholdings, for a total cash
consideration of US$ 96.8 million. Following these two transactions, Sistema's
total investment in acquiring the stakes amounted to US$ 599.7 million.

Sistema has acquired additional voting stakes of 8.27% in OAO Novoil, 5.62% in
OAO Ufimsky NPZ, 2.53% in OAO Ufaneftekhim, 3.10% in OAO ANK Bashneft and 4.97%
in OAO Ufaorgsintez (the 'Companies').

Sistema also acquired a further 2.00% voting stake in Bashneft, while at the
same time reaching an agreement to cancel the acquisition of a 10.08% stake in
OAO Bashkirenergo. As a result, Sistema's stake in Bashneft now amounts to
25.00%, and in OAO Bashkirenergo to 0%.

Sistema's voting stake in OAO Novoil increased to 28.17%, in OAO Ufimsky NPZ to
25.52%, in OAO Ufaneftekhim to 22.43% and in OAO Ufaorgsintez to 24.87%. The
transaction did not affect Sistema's holdings in OAO Bashnefteproduct which
stayed at 18.57%. By completing this transaction, Sistema reached the initially
planned ownership levels in the aforementioned companies, and currently has no
intention to further increase its shareholdings.

All six companies together comprise the majority of the energy sector in the
region and are engaged in oil exploration and extraction, oil refining and
petrochemical production. Taken as a whole, they are Russia's third largest oil
refiner. The Companies' results are reported under Russian accounting standards
and are not therefore comparable with Sistema's consolidated accounts, which are
reported according to US GAAP. The total market value of Sistema's combined
equity stake as calculated based on the RTS closing prices for Friday, September
30, 2005, stood at approximately US$ 1,223 million.

For further information, please visit

Sistema is the largest private sector consumer services company in Russia and
the CIS, with over 50 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$ 5.7 billion for the
full year 2004, and total assets of US$ 8.8 billion as at December 31, 2004.
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.

    CONTACT: Sistema Investor Relations
             Alexei Kurach, +7 095 229 2741
             Shared Value Limited
             Matthew Hooper, +44 (0) 20 7321 5023