Moscow, Russia – October 3, 2011 – Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces its intention to start immediately acquiring its own ordinary shares and global depositary receipts (“GDRs”). Sistema is also considering purchasing MTS’ ordinary shares and/or American depositary receipts (“ADRs”). The total value of these purchases will be up to US$ 100 million.

Any shares, GDRs and ADRs will be acquired via and held by Sistema’s subsidiaries as Sistema does not intend to cancel any of the shares purchased nor will the shares underlying the GDRs or ADRs be withdrawn from the GDR or ADR facilities or cancelled. Any purchase of MTS’ ADRs would be conducted in compliance with the SEC’s Rule 10b-18 and/or Rule 10b5-1, if applicable. Any purchases pursuant to these arrangements will be effected during the period between October 3, 2011 and November 4, 2011 within certain pre-set parameters and in accordance with general market practice. The shares, GDRs and ADRs purchased may be used for corporate purposes and may be sold subsequent to the purchase period. Sistema is also considering, depending upon market conditions, selling put options over Sistema’s GDRs and/or MTS’ ADRs. An announcement will be made if this course is taken.