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JSFC Sistema (SSA)

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Monday 04 October, 2010

JSFC Sistema

Statement re SISTEMA COMPLETES REORGANIZATION O...

Statement re SISTEMA COMPLETES REORGANIZATION OF TELECOMS ASSETS

JSFC Sistema

SISTEMA COMPLETES REORGANIZATION OF TELECOMS ASSETS

Sistema JSFC (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies operating in different industries, today announces the final completion of the transactions described in the Memorandum of Understanding signed between OJSC Comstar-UTS, Sistema JSFC and OJSC Svyazinvest on November 23, 2009.

The following transactions have been completed:

  • OJSC Svyazinvest’s transfer of 28% of ordinary shares in OJSC MGTS (23.3% of the share capital of OJSC MGTS) to CJSC Sistema-Inventure, a subsidiary of Sistema JSFC, in exchange for CJSC Sistema-Inventure’s transfer of 50% of ordinary shares in CJSC Sky Link (which combined with the indirect ownership effectively totals 100% of CJSC Sky Link’s share capital);
  • JSFC Sistema’s sale of CJSC Sky Link’s shareholder debt to subsidiaries of OJSC Svyazinvest for RUB 8.1 billion.

These transactions are the last of the inter-linked transactions described in the Memorandum of Understanding (including the transfer of 25% + 1 share in Svyazinvest to OJSC Rostelecom by OJSC Comstar-UTS and its subsidiary MGTS Finance S.A.), which have now all been completed.

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

Investor Relations   Public Relations
Ekaterina Tsukanova Vsevolod Sementsov
Tel: +7 (495) 228 1536 Tel: +7 (495) 730 1705

ir@sistema.ru

pr@sistema.ru

Sistema is the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the company reported revenues of US$ 6.9 billion for the second quarter of 2010, and total assets of US$ 40.2 billion as at June 30, 2010. Sistema’s global depository receipts are listed under the symbol “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the symbol “AFKS” on the RTS Stock Exchange, under the symbol “AFKC” on the MICEX Stock Exchange, 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.

This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the shares or securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies.