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JSFC Sistema (SSA)

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Friday 30 June, 2006

JSFC Sistema

AGM Statement

JSFC Sistema


Sistema (LSE: SSA) the largest private sector consumer services company in
Russia and the CIS, today held its Annual General Meeting of shareholders.

All resolutions proposed to the meeting were approved and included approval by
the shareholders of:

--  A cash dividend of RUR 28.0 per share (equivalent to US$ 1.03 per share or
    US$ 0.02 per GDR) for the twelve months ended 31 December 2005. The total
    dividend payable amounts to RUR 270.2 million (US$ 9.98 million), which is
    equivalent to approximately 2% of Sistema's US GAAP consolidated net income
    for 2005.

--  The election of the members of the Board of Directors as follows:

    --  Vladimir Evtushenkov - Chairman

    --  Alexander Goncharuk - Chief Executive Officer

    --  Evgeny Novitsky - Non-executive Director

    --  Dmitry Zubov - Non-executive Director

    --  Vyacheslav Kopiev - Non-executive Director

    --  Alexander Leiviman - Non-executive Director

    --  Nikolai Mikhailov - independent Director

    --  Sergey Drozdov - Senior Vice President

    --  Alexander Gorbatovsky - independent Director

    --  Stephan Newhouse - independent Director

    --  Ron Sommer - independent Director

--  The appointment of Audit-Garantia-M and Deloitte & Touche as Sistema's
    auditors for 2006 in accordance with RAS and US GAAP, respectively

--  The extension of the notice period to 100 days following the year end for
    shareholders to propose nominees to the Board of Directors and items for
    consideration at the Annual General Meeting

--  The split of the 9,650,000 existing Sistema ordinary shares with a par value
    of RUR 90 into 482,500,000 ordinary shares with a par value of RUR 1.8,
    representing a 1:50 split ratio. As a result of the split, the GDR to
    ordinary share ratio will change from 1:50 to 1:1.

--  The regulation of Sistema's Management Board

--  The regulation of Sistema's President

--  The regulation of the remuneration for the members of the Board of Directors

The Board of Directors has also held its first meeting following the Annual
General Meeting, and re-elected Vladimir Evtushenkov as Chairman and Vyacheslav
Kopiev and Dmitry Zubov as the Deputy Chairmen of the Board of Directors.

For further information, please visit or contact:

Sistema Investor Relations                            Shared Value Limited
Alexei Kurach                                         Matthew Hooper
Tel: +7 4 95 6292741                                  Tel. +44 (0) 20 7321 5023                           

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$ 7.59 billion for
the full year 2005, and total assets of US$ 13.09 billion as at December 31,
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.