Information  X 
Enter a valid email address

JSFC Sistema (SSA)

  Print      Mail a friend

Friday 28 December, 2007

JSFC Sistema

Statement re SISTEMA LAUNCHES SHARE OPTION PROG...

JSFC Sistema
                  

                     SISTEMA LAUNCHES SHARE OPTION PROGRAMME

Sistema (LSE:SSA), the largest public diversified corporation in Russia and the
CIS, which manages fast growing companies operating in the consumer services
sector, announced the launch of the long-term incentive program for its
employees.

Up to 110 of Sistema's senior and middle managers will participate in the
scheme. Participants will be entitled to exercise options granted to them for a
period of twelve months from the three year anniversary of the granting of such
options.

A total of up to 20,000 Sistema phantom share options, up to 996,000 MTS phantom
share options, up to 1,190,500 Comstar phantom share options, up to 37,600
Sistema-Hals phantom share options, and up to 45,455,000 SITRONICS phantom share
options, will be distributed under the scheme. The exercise price for the
phantom options will be based on the market price of the shares at the time of
exercise.

Sistema has also allocated part of its holding of ordinary shares in its
unlisted subsidiaries for the purpose of the creation of the stock option
programme. The table below sets out the allocation of issued ordinary shares in
Sistema's non-public subsidiaries for the purposes of the stock option plan.

-0-
*T
                                    The aggregate part of the issued charter
       Name of the company           capital allocated for the stock option
                                                     purposes
           JSCB 'MBRD'                                2.2%
    OJSC 'Detsky Mir-Center'                          2.5%
    OJSC 'Sistema Mass-media'                         2.5%
      OJSC 'VAO Intourist'                            4.0%
  Concern 'Radiotechnical and
   Informational Systems', JSC                        5.0%
  CJSC Medsi Group of companies                       5.0%
        CJSC 'Binnopharm'                             5.0%
*T

In line with Sistema's Stock Bonus plan, the total amount of Sistema treasury
stock currently being allocated to this option plan is expected to amount to
0.1% of Sistema's total issued share capital.

The Sistema Board of Directors may, from time to time, grant additional stock
bonuses to senior and middle managers of Sistema as part of annual individual
incentivisation programmes.

Alexander Goncharuk, President and Chief Executive Officer, commented: 'One of
our key priorities is the attraction, retention and motivation of the most
highly skilled and experienced managers and professionals. This programme will
enable us to enhance the incentivisation and motivation of our key people - both
current and new employees. It also further aligns the interests of our senior
management team with those of our shareholders by linking remuneration to the
performance of our stock price.'

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

-0-
*T

Sistema Investor Relations                      Shared Value Limited
Laila Simanova                                  Larisa Kogut-Millings
Tel: +7 495 629 27 41                           Tel: +44 (0) 20 7321 5023
ir@sistema.ru                                   sistema@sharedvalue.net

Head of International Press Office
Kirill Semenov
Tel: +7 495 730 71 88
ksemenov@sistema.ru
*T

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$ 9.6 billion for the first nine months of 2007, and
total assets of US$ 24.2 billion as at September 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).

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.