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JSFC Sistema (SSA)

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Tuesday 29 April, 2008

JSFC Sistema

Statement re SISTEMA BOARD SETS DATE OF AGM AND...

JSFC Sistema
                  

    SISTEMA BOARD SETS DATE OF AGM AND RECOMMENDS INCREASED DIVIDEND PAYMENT

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 the Board of Directors (the 'Board') set the date
for the Company's Annual General Meeting of Shareholders ('AGM') for June 28,
2008. Shareholders at the record date of May 17, 2008, are eligible to
participate in the AGM.

The Board recommended the AGM to consider the following:

1) Approve the Annual Report, the annual accounts, including the Company's
profit and loss accounts for 2007;

2) Consider the profit distribution, approve the size, order, form and timing of
dividend payment for 2007;

3) Elect the Audit Committee;

4) Elect the members of the Board of Directors;

5) Approve Sistema's Russian Accounting Standards and US GAAP auditors;

6) Adopt a new edition of Regulation on the Executive Board;

7) Adopt a new edition of Regulation on the Board of Directors

In addition, the Board of Directors recommended an annual dividend of RUB
2,512,500,000.00, or approximately US$ 106.4 million(1) , for the twelve months
ended December 31, 2007 to holders of Sistema shares. The dividend, which
amounts to a payment of RUB 0.25 per share, or approximately US$ 0.21 per Global
Depositary Receipt ('GDR'), is more than five times higher than the dividend
paid for the same period of 2006. The Board recommended the higher dividend
payment following the revision of the Company's dividend policy, according to
which Sistema intends to pay dividend of up to 40% of its US GAAP net profit
going forward.

The changes in the dividend policy are aimed at increasing the shareholder value
within the Company's business development strategy, as well as boosting return
on investment.

The Board of Directors also recommended the AGM to elect new members of the
Board as follows:

    --  Sergey Cheremin

    --  Vladimir Evtushenkov

    --  Alexander Goncharuk

    --  Alexander Gorbatovsky

    --  Vyacheslav Kopiev

    --  Stephan Newhouse

    --  Evgeny Novitsky

    --  Robert Skidelsky

    --  Ron Sommer

    --  Dmitry Zubov

If elected to the Board, Robert Skidelsky, Professor of Political Economy at the
University of Warwick and a Fellow of the British Academy since 1994, will
become the fourth Non-executive and Independent Director on the Company's Board.

Further information with regard to the AGM and other related issues will be
available from May 28, 2008 on the Company's website at www.sistema.com, as well
as by request at Sistema's office at the following address: 17 Prechistenka
Street, Moscow 119034, Russia.

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

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

(1) Based on the Russian Central Bank exchange rate as at April 29, 2008