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JSFC Sistema (SSA)

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Thursday 31 August, 2006

JSFC Sistema

Acquisition

JSFC Sistema
                  

SISTEMA ACQUIRES PERM MOTORS GROUP

Moscow, Russia - August 31, 2006 - Sistema (LSE: SSA) the largest private sector
consumer services company in Russia and the CIS, today announced the acquisition
of 81.25% of ZAO Sahles. The stake was acquired from ZAO Technoinvest, a
subsidiary of ZAO Vneshtorgbank Retail Services.

ZAO Sahles owns controlling stakes in the entities which constitute the Perm
Motors group, which, following the acquisition, will become part of Concern RTI
Systems - a business segment of Sistema focusing on high-tech projects in radio
technology, airspace navigation systems and the construction of power machines.

For further information, please visit www.sistema.com or contact:

Sistema Investor Relations         Shared Value Limited
Andre Bliznyuk                     Matthew Hooper
Tel: +7 4 95 730 1543              Tel. +44 (0) 20 7321 5023
ir@sistema.ru                      sistema@sharedvalue.net

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).

OAO Concern RTI Systems, founded in 2000, consolidates a number of Russian
companies focusing on unique high-tech projects in radio technology, airspace
navigation systems and power machine-building, such as OAO RTI, OAO NIIDAR, OAO
Saratov Television Plant, OAO Yaroslavl Radio Plant, OAO UralElectro, OAO
DMZ-Kamov, OAO MTU Saturn, OAO OKB Planeta and others. Additional information is
available at www.rtisystems.ru.

Perm Motors is a group of businesses focused on design and manufacturing of
aircraft and industrial engines and gas turbines. ZAO Sahles controls 100% minus
1 share in ZAO PM-Nedvizhimost, 100% minus 1 share in ZAO REMOS-PM, 100% minus 1
share in ZAO Instrumentalny Zavod - PM, 98.6% in Energetik-PM, 34.35% in ZAO
Kaskad-PM, 71.64% in OAO Permsky Motorny Zavod, 49% in ZAO Metallist-PM, 99% in
OOO Nedvizhimost-PM and 100% minus 1 share in ZAO Zheleznodorozhnik-PM.

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.