Moscow, Russia - 28 July 2008 - The EBRD, and JSC Detsky mir-Center signed a 5-year syndicated loan agreement for US$50 million.

Alain Pilloux, EBRD Business Group Director for Russia, said the Bank welcomed Detsky Mir's commitment to ensuring high quality and safety standards for children's goods sold through the chain and hailed the project as one which would help develop an organized retail market in this sub-sector, particularly in the regions of Russia.

"The EBRD's reputation is irreproachable and it finances companies which base their success on good corporate governance and a competent corporate finance policy, as well as high standards of social responsibility and environmental protection. This loan agreement demonstrates our conformity with those standards and provides a good platform for our future expansion.

The loan proceeds will be invested in the expansion of our retail network in 2008. In next few years our target is to keep up current growth rate of Detsky Mir's retail space" - says Maxim Entyakov, CEO of JSC Detsky mir-Center. 

For further information, please, contact:

Egor Voytenkov                                                                             Richard Wallis

Detsky Mir Group                                                                           ÅBRD

007 (495) 781 08 08 #23-93                                                        007 (495) 787 1111

evoytenkov@detmir.ru                                                                 WallisR@ebrd.com

The national retail chain Detsky Mir (Children's World) is a leading retail supplier of goods for children and teenagers in Russia. Currently it comprises the Detsky Mir retail outlets network and C-Toys company, one of the leading producers and importers of toys in Russia. Detsky Mir has a cumulative trading area of over 180 000 square meters in 102 super and hyper-markets in 50 cities of Russia, and one in Ukraine. For the year ended December 31, 2007 Detsky Mir Group reported the combined revenues of US$597.2 million (78% year-on-year growth) under US GAAP. OJSC Detsky Mir - Center is the holding company of the group with over 99% of the stock owned by JSFC Sistema. For further details please visit: www.detmir.ru, www.det-mir.ru

JSFC 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). For further information please visit: www.sistema.com

The EBRD, owned by 61 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies from central Europe to central Asia. For further information please visit: https://www.ebrd.com/