DEVELOPMENT STRATEGY FOR
SISTEMA HEALTHCARE SERVICES DIVISION
Sistema (LSE:SSA), the largest public diversified corporation in Russia and the
CIS, which manages fast growing companies operating in the consumer services
sector, today announced that it has approved the development strategy for its
Healthcare Services division. The division's assets are being integrated into
the 'Medsi Companies Group' holding structure, and comprise the Medsi clinic
(out-patient clinic for adults), the Medsi-II clinic (out-patient clinic for
children), the American Hospital Group (a family clinic operating under the
'American Medical Centres' brand for VIP clients and expatriates), and
MedExpress (a chain of private healthcare facilities in Russia including 23
clinics in Moscow and the regions, and an ambulance service in Moscow). The
Medsi Companies Group is 100% owned by Sistema and will comprise 14 clinics in
Moscow and 12 clinics in the regions.
Sistema intends to create a chain of 100 clinics by 2011, which will provide a
full range of paid-for services encompassing preventive treatment, diagnostics
and clinical treatment. The clinics will operate under a unified brand, format
and set of standards. Sistema plans to invest approximately US$ 100 million per
year in the development of the Group of healthcare services companies.
Vladimir Gurdus, Professor and Doctor of Medicine and General Director of the
Medsi Companies Group, commented: 'We intend to provide high quality medical
services to clients, and to provide treatment for a wide range of medical
conditions and healthcare concerns. We are paying particular attention to the
location of the clinics, in order to ensure close proximity to clients' homes
and work places.'
Alexander Goncharuk, President and Chief Executive Officer of Sistema, added:
'The paid-for healthcare services sector is one of our key areas for growth. The
healthcare services market presents considerable growth opportunities and we
intend to become a leading player in this fast developing market place.'
For further information, please visit www.sistema.com or contact:
Sistema Public Relations Shared Value Limited
Kirill Semenov Larisa Kogut-Millings
Tel: +7 495 730 7188 Tel. +44 (0) 20 7321 5037
Sistema is the largest public diversified corporation in Russia and the CIS,
which manages fast growing companies operating in the consumer services sector
and has over 80 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$ 5.9 billion for the first half of 2007, and total
assets of US$ 22.5 billion as at June 30, 2007. 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 the Moscow Interbank Currency Exchange
(MICEX), and under the symbol 'SIST' on the Moscow Stock Exchange (MSE).
Medsi and Medsi-II reported revenues of US$ 17 million; American Hospital Group
reported revenues of US$ 6 million; and MedExpress reported revenues of US$ 21
million for the twelve months ended December 31, 2006.
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.