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JSFC Sistema (SSA)

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Wednesday 11 January, 2006

JSFC Sistema

Acquisition

JSFC Sistema
                  

          Comstar UTS Makes Acquisition in the Moscow Region

Sistema (LSE: SSA), the largest private sector consumer services company in
Russia and the CIS, announced today that its fixed-line telecommunications
provider subsidiary Comstar UTS has acquired a 100% stake in CTK
Contrast-Telecom - a leading alternative fixed-line operator in Sergiev Posad,
one of the largest districts in the Moscow Region.

CTK Contrast-Telecom provides local fixed-line voice service, data transmission,
internet access and a range of value-added services. The company operates a
proprietary telecommunications network, controlling about 25% of the local fixed
voice market and over 50% of the Internet access market in Sergiev Posad. The
company's revenues for 2005 amounted to US$2m, of which about 49% comes from the
corporate clients, with OIBDA of approximately US$1m.

The acquisition of one of the leading alternative telecommunications operators
in the Moscow Region is the next step in Comstar UTS' expansion strategy,
allowing it to further improve its coverage of the Moscow Region. The company
has set up a regional office at the end of 2005 to coordinate its operations in
twelve districts of the Moscow Region.

For further information, please visit www.sistema.com

Sistema is the largest private sector consumer services company in Russia and
the CIS, with over 45 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, 2004. Sistema's shares are listed under the symbol 'SSA' on the London Stock
Exchange 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, +7 495 629 2741                                
             kurach@sistema.ru     
             or
             Comstar UTS              
             Veniamin Kofman, +7 495 956 2170                        
             kofman_vl@comstar-uts.ru 
             or
             Shared Value Limited      
             Matthew Hooper, +44 (0) 20 7321 5023 
             sistema@sharedvalue.net