Information  X 
Enter a valid email address

JSFC Sistema (SSA)

  Print      Mail a friend

Thursday 16 June, 2011

JSFC Sistema

SISTEMA AND ZTE SIGN MEMORANDUM OF UNDERSTANDING

SISTEMA AND ZTE SIGN MEMORANDUM OF UNDERSTANDING

JSFC Sistema

SISTEMA AND ZTE SIGN MEMORANDUM OF UNDERSTANDING

Moscow, Russia – June 16, 2011 – JSFC Sistema (“Sistema”) (LSE:SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that Vladimir Evtushenkov, Chairman of the Board of Directors of Sistema, and Shi Lirong, President of ZTE Corporation, have signed a Memorandum of Understanding, which outlines the principles and strategic direction for future cooperation between the two corporations. Dmitry Medvedev, the President of the Russian Federation, and Hu Jintao, President of the People’s Republic of China, were both present at the signing ceremony during Mr Jintao’s state visit to Russia.

The Memorandum, which is not legally binding, stipulates that the objective of the strategic cooperation between Sistema and ZTE is jointly to develop and promote the latest innovative technologies in Russia and other CIS countries. It is expected that this long-term objective will require production sites to be established in Russia (Zelenograd) and China (Hangzhou and Shenzhen) by a joint venture between JSC SITRONICS, a subsidiary of Sistema, and ZTE. In addition, Sitronics and ZTE plan to make investments in the joint venture by the end of 2011 in the form of cash, intellectual property or production facilities.

***

For further information please contact:

Sistema

     
Investor Relations Public Relations

Evgeniy Chuikov

Vsevolod Sementsov

Tel.: +7 (495) 692 1100 Tel: +7 (495) 730 1705

ir@sistema.ru

pr@sistema.ru

 

ZTE Corporation

System product support department

Wang Zhe

Tel.: +7 (495) 740 1350

wang.zhe2@zte.com.cn

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$ 7.8 billion for the first quarter of 2011, and total assets of US$ 46 billion as at March 31, 2011. 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).

ZTE Corporation is one of the largest global providers of telecommunications equipment and network solutions operating in more than 140 countries. It offers a wide choice of products ranging from voice, data, multimedia and wireless broadband services. Founded in 1985, ZTE is China’s largest listed telecom equipment company and trades on both the Shenzhen and Hong Kong stock exchanges. In 2010, ZTE recorded revenue of USD 10.82 billion. In 2000 ZTE entered Russian market. For 10 years, the total sum of project consists more than USD 2 billion. In 2010, ZTE sales amount in Russia is 150% more than in 2009. In the past 3 years, the average annual sales growth of ZTE in Russia market exceeds 100%.

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.