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JSFC Sistema (SSA)

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Tuesday 14 March, 2006

JSFC Sistema

Sistema to Launch Share Option Programme For SI...

JSFC Sistema

Sistema (LSE: SSA), the largest private sector consumer services company in
Russia and the CIS, announced today that it has transferred 14.72% of the shares
in Concern SITRONICS ('SITRONICS'), the technology arm of Sistema, to SITRONICS
Management. SITRONICS Management has been established for the purpose of
implementing a share option programme for the senior management of SITRONICS.
Sistema's current shareholding in SITRONICS as a result of this transaction was
reduced from 94.53% to 91.56% of the outstanding share capital, but may be
diluted further in the future through the exercising of the options to be

The share options will be awarded to the senior management of SITRONICS and its
business units during 2006 and during the next four years.

This is one of the first such programmes to be launched by Sistema and reflects
the decision by Sistema's Board of Directors to introduce such schemes across
the Group, in order to incentivise and reward key executives and to align senior
executive remuneration with the creation of value for all shareholders. Award
levels will be determined by the Board of Directors on the basis of individual
and company performance.

For further information, please visit or contact:

SITRONICS Public Relations          Sistema Investor Relations       Shared Value
Elena Sanarova                      Alexei Kurach                    Matthew Hooper
Tel: +7 495 225 0030                Tel: +7 495 629 2741             Tel: +44 (0)207 321 5023             

About SISTEMA 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$ 5.4 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).

About CONCERN SITRONICS Concern SITRONICS, headquartered in Moscow, Russia is
the technology arm of Sistema active in four core segments: Telecom equipment
manufacturing & software development (Infocommunication Technologies),
Information Technologies, Microelectronic Components and Consumer Electronics.

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.