Sistema Annual Shareholder Meeting Approves Dividend Payment for 2006
Moscow, Russia - July 2, 2007 - Sistema (LSE: SSA), the largest private sector
consumer services company in Russia and the CIS, today announced the decisions
made at the Annual General Meeting of its shareholders ('AGM') on June 30, 2007.
The AGM approved an annual dividend of RUR 48.0 per ordinary share, or
approximately US$ 0.038 per Global Depositary Receipt ('GDR'), for the twelve
months ended December 31, 2006, to be paid to holders of Sistema's shares as at
the record date of May 12, 2007. The dividend payment, which amounts to
approximately RUR 463.2 million or approximately US$ 17.9 million, represents
approximately 2% of Sistema's US GAAP consolidated net income for the full year
2006 and is due to be paid within 60 days of today's AGM approval.
The shareholders also approved 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
-- Sergey Drozdov - Senior Vice President
-- Alexander Gorbatovsky - Non-executive and Independent Director
-- Stephan Newhouse - Non-executive and Independent Director
-- Ron Sommer - Non-executive and Independent Director
In addition, the AGM approved the election of the members of the Audit Committee
and approved a new version of the Company's Charter.
Audit-Garantia-M was appointed as Sistema's Russian Accounting Standards auditor
for 2007, and Deloitte & Touche was appointed as Sistema's US GAAP auditor for
At the statutory Board meeting following the AGM, the Sistema's Board of
Directors 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 www.sistema.com or contact:
Head of International Press Office Shared Value Limited
Kirill Semenov Matthew Hooper
Tel: +7 916 928 76 98 Tel: +44 (0) 20 7321 5023
Sistema is the largest private sector consumer services company in Russia and
the CIS, with over 75 million customers. Sistema develops and manages
market-leading businesses in selected service-based industries, including
telecommunications, technology, banking, real estate, retail and media. Founded
in 1993, the company reported revenues of US$ 10.9 billion for the full year of
2006, and total assets of US$ 20.1 billion as at December 31, 2006. 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.
Information contained in this announcement does not constitute a public offer or
an advertisement of securities in Russia, is not an offer, or an invitation to
make offers, to purchase any securities in Russia. The reverse convertible
certificates have not been and will not be registered in Russia and are not
intended for 'placement' or 'public circulation' in Russia.