MOSCOW, Russia - January 31, 2008 - JSC SITRONICS ("SITRONICS" or "The Company") (LSE: SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS, today announced that its telecommunications solutions business unit, SITRONICS Telecom Solutions, Czech Republic ("SITRONICS TS, CZ"), has signed two contracts with MTS-Ukraine (formerly UMC), one of the leading Ukrainian mobile operators, which provides services to nearly 20 million users. The total value of the contracts is approximately US$ 12.4 million.

Under the terms of these contracts, SITRONICS TS, CZ will provide the equipment for MTS-Ukraine's two new mobile transit exchanges and upgrade to boost the overall capacity four existing exchanges utilizing GMSC technology (Gateway Mobile Switching Centre). The new system is expected to be deployed in the middle of 2008. SITRONICS TS, CZ currently provides the MTS Group with its MEDIO range of products (digital switching platforms), as well as with FORIS NG (an OSS/BSS solution for telecommunications operators) and TENNET (a Next Generation Network solution). Mikhail Minkovsky, Chief Technology Officer of SITRONICS, commented: "We continue to expand our cooperation with MTS-Ukraine, a subsidiary of the largest mobile operator in Russia and the CIS. These new agreements demonstrate the high quality and competitiveness of our products and solutions. We are pleased to once again be able to deliver our services to the MTS Group as its telecom equipment provider." Andrew Dubovskov, General Director of MTS-Ukraine, added: "MTS-Ukraine was the first mobile operator in Ukraine. We have been working on the technical improvement of our network and connection quality for over 15 years. MTS-Ukraine has a number of joint projects with SITRONICS and we are pleased to have an opportunity to expand this cooperation."