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JSFC Sistema (SSA)

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Tuesday 15 January, 2008

JSFC Sistema


JSFC Sistema


                                    IN INDIA

Moscow, Russia - January 15, 2008 - 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 its
Indian subsidiary, Shyam Telelink Ltd. ('the Company'), has been awarded unified
telecommunication licenses for provision of fixed-line and cellular services in
21 Indian circles. As a result, the Company will hold licenses, including the
licenses already obtained in the state of Rajasthan, covering the whole of

Sistema, the Company's shareholder, has guaranteed US$ 520 million of the total
US$ 630 million to be paid for obtaining the licenses. The signing of license
agreements and obtaining relevant frequencies from the Indian Department of
Telecommunications will be finalised in accordance with Indian regulations. The
timing of frequency allocation has not been determined and it is not defined
when the frequencies will be assigned.

In September 2007, Sistema acquired a 10% stake in Shyam Telelink Ltd., followed
by signing a share purchase agreement in October 2007 for the acquisition of an
additional 41% stake. As a result, Sistema will own 51% stake in Shyam Telelink

Alexander Goncharuk, President and Chief Executive Officer, commented: 'Shyam
Telelink met our expectations and received telecommunication licenses covering
the whole of India. We consider India as one of the most attractive markets with
a high growth potential. Our plans, as a strategic investor, include building
national telecommunication network and providing our Indian customers with
modern telecommunication services.'


       For further information, please visit or contact:

       Sistema Investor Relations                                              Shared Value Limited
       Laila Simanova                                                          Larisa Kogut-Millings
       Tel: +7 495 629 27 41                                                   Tel: +44 (0) 20 7321 5037                                                 

       Head of International Press Office
       Kirill Semenov
       Tel: +7 495 730 71 88

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

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.