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JSFC Sistema (SSA)

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Monday 28 July, 2008

JSFC Sistema


JSFC Sistema


Moscow, Russia - 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 Board of Directors approved a
new organizational structure of the Company at its meeting on July 26, 2008.

Sistema adopted a matrix model and formed three new operating units in addition
to functional divisions. These units will be responsible for the management of
Sistema's subsidiaries.

The operating unit 'Telecommunications Assets', previously the
Telecommunications Assets Development unit, headed by Vitaly Savelyev, First
Vice President of Sistema, will be responsible for the development and
implementation of Sistema's telecommunications strategy, as well as management
of telecommunications and media assets, including MTS, Comstar-UTS, Sistema Mass
Media, and other companies in Russia, as well as Shyam Telelink, Sistema's
subsidiary in India.

The operating unit 'Consumer Assets' will focus on the development of companies
in the consumer sector, including Detsky Mir, Intourist, MEDSI and MBRD, as well
as Sistema Hals. The Board of Directors has appointed Felix Evtushenkov as Vice
President of Sistema to head this unit.

The operating unit 'High Technologies and Industry' will be engaged in Sistema's
high tech and venture projects, as well as private-public partnerships. This
unit, headed by Sergey Boyev, Vice President of Sistema, will also oversee
Sitronics and RTI Systems.

The new organizational structure of Sistema will comprise the following
functional divisions:

    --  Strategy and Development, headed by Anton Abugov, First Vice President

    --  Finance, Alexey Buyanov, Senior Vice President

    --  Property, Sergei Drozdov, Senior Vice President

    --  Legal, Anna Goldin, Vice President

    --  External Relations, Sergey Cheremin, appointed as Senior Vice President

    --  Administrative, Ruslan Almakaev, Vice President

    --  Corporate Communications, Gennady Frolov

    --  Internal Control and Audit, Olga Shurygina

All above mentioned managers of operating units and functional divisions will
report directly to Leonid Melamed, President and CEO of Sistema.

Leonid Melamed, President and Chief Executive Officer of Sistema, commented:
'The adoption of these changes to the organizational structure completes the
process of reorganization, which was started a year ago, and underlines our
efforts to improve the efficiency of asset management and simplify our corporate
structure. The adopted matrix model of the organization is aimed at achieving
greater participation and control over the execution of the strategy in daughter
companies, increasing motivation and responsibilities of the Corporate centre's
senior management in the decision making process in target markets, as well as
optimizing business development expenditures through synergies and consolidation
of management resources.'

For further information, please visit or contact:

Sistema Investor Relations                  Shared Value Limited
Pavel Kim                                   Larisa Kogut-Millings
Tel: +7 495 692 22 88                       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 100 million customers. Sistema develops and manages market-leading
businesses in selected service-based industries, including telecommunications,
technology, banking, real estate, retail, media, tourism and healthcare. Founded
in 1993, the company reported unaudited revenues of US$ 3.8 billion for the
first quarter of 2008, and total assets of US$ 30.3 billion as at March 31,
2008. 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. In addition, there is
no assurance that the new contracts entered into by our subsidiaries referenced
above will be completed on the terms contained therein or at all. 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.