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JSFC Sistema (SSA)

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Thursday 13 March, 2008

JSFC Sistema

Statement re Sistema Places 6 Billion Ruble Bon...

JSFC Sistema


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 successfully placed its RUB 6 billion
corporate Bond issue. The annual interest rate for the first and second coupon
payments has been set at 9.45%. The Bonds mature in five years time and coupon
payments will be made on a semi-annual basis. The issue was fully placed and
over-subscribed, with application levels of over RUB 9 billion.

The prospectus for the Bond issue was registered by Russia's Federal Financial
Markets Service ('FFMS') on February 21, 2008.

VTB Bank and Joint Stock Commercial Bank 'ROSBANK' acted as the Co-Lead Managers
of the issue. Bank Petrocommerce, URALSIB Financial Corporation, Promsvyazbank
and Sberbank acted as the Underwriters of the issue. The Bonds were placed on
the Moscow Interbank Currency Exchange (MICEX).

Alexey Buyanov, Senior Vice President and Head of the Finance and Investment
Group, commented: 'We are pleased to announce the placement of our bond issue,
especially in the challenging prevailing credit market environment. The proceeds
of the issue will be used to refinance our existing debt facilities and fund our
investment programmes. This demonstrates the continued support in the capital
markets for our development strategy, as well as the financial solidity of the
Group. We would like to highlight the work of the Co-Lead Managers and the high
levels of their professionalism exhibited throughout the process.'

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

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), under the symbol 'AFKC' on 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.