SISTEMA MASS MEDIA ACQUIRES A DIGITAL TV BROADCASTING COMPANY
Sistema (LSE:SSA), the largest private sector consumer services company in
Russia and the CIS, announced today that its media arm, Sistema Mass Media,
acquired a 74% stake in Cifrovoe Teleradioveshanie (CTV), a digital television
broadcasting company, for cash consideration of approximately US$7 million.
CTV was incorporated in June 2005, and was licensed to provide digital TV
broadcasting services in Moscow, Moscow Region, Nizhny Novgorod and Nizhny
Novgorod Region. In January 2003, the company launched commercial digital TV
broadcasting for automobile TV receivers.
Sistema views digital TV as a promising new line of its existing media business
and this acquisition is yet another step in the execution of Sistema Mass
Media's strategy of refocusing from traditional to digital media.
'We already distribute our content through cable, MMDS and ADSL networks, and
this acquisition will enable us to add a new distribution channel to our
existing TV infrastructure,' commented Alexander Leiviman, CEO of Sistema Mass
For further information, please visit www.sistema.com or contact:
Sistema Investor Relations Shared Value Limited
Alexei Kurach Matthew Hooper
Tel: +7 095 229 2741 Tel. +44 (0) 20 7321 5023
Sistema is the largest private sector consumer services company in Russia and
the CIS, with over 50 million customers. Sistema develops and manages
market-leading businesses in selected service-based industries, including
telecommunications, technology, insurance, banking, real estate, retail and
media. Founded in 1993, the company reported revenues of US$ 3.4 billion for the
first six months of 2005, and total assets of US$ 11.6 billion as at June 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.