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JSFC Sistema (SSA)

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Friday 18 January, 2008

JSFC Sistema

Statement re Sistema Acquires Control of Shyam ...

JSFC Sistema

The issuer advises that the following replaces the 'Statement re Sistema
Acquires Control of Shyam Telelink' announcement released at 14:45 GMT today.

An amendment has been made to the boilerplate.


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 increased its stake in Shyam Telelink Ltd.
('Shyam Telelink') from 10% to 51%. The additional shares were acquired for a
total cash consideration of US$ 46.7 million.

Sistema acquired a 10% stake in Shyam Telelink for a total cash consideration of
US$ 11.4 million at the end of September 2007. In October 2007, Sistema signed a
share purchase agreement for the acquisition of an additional 41% stake in Shyam
Telelink and a call option agreement, which gives Sistema the right to increase
its stake in Shyam Telelink from 51% up to a maximum of 74%. Later in December
2007, Sistema received an approval for the acquisition of the blocking stake in
Shyam Telelink from the Foreign Investment Promotion Board (FIPB) of India. As a
result of the acquisition of the additional 41% stake, the overall purchase
price totaled US$ 58.1 million.

Alexander Goncharuk, President and Chief Executive Officer, commented: 'The
acquisition of control over Shyam Telelink is in line with Sistema's strategy to
enter new perspective markets. We are pleased to have the opportunity to invest
in one of the most dynamically developing world markets. Our goal is to create
an operator with advanced technologies which is able to meet the growing demand
for the majority of telecommunications services.'


For further information, please visit or contact:

Sistema Investor Relations               Shared Value Limited
Laila Simanova                           Larisa Kogut-Millings
Tel: +7 495 730 66 00                    Tel: +44 (0) 20 7321 5037                  

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

Shyam Telelink is a joint venture company, between Shyam Group of India &
Sistema Corporation of Russia. Shyam Telelink Ltd. obtained a unified license to
provide fixed-line and cellular services to corporate and residential customers
in the Indian state of Rajasthan with a population of approximately 65 million
people. The company also controls 100% of the local internet service provider
Shyam Internet Ltd. Shyam Telelink Ltd. owns a developed telecommunications
infrastructure in state of Rajasthan, which includes 4,000 kilometres of
fiber-optic lines. Shyam Telelink provided services to over 258,000 subscribers
as at the end of September 2007.

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

The Shyam Group is a diversified industrial group, operating in
telecommunications services and equipment sectors. The group's companies are
leaders in RF/Mobile engineering and provide a wide range of equipment and
services to largest mobile operators.

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.