Moscow, Russia - August 29, 2008 - Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced that Standard & Poor's rating agency (S&P) has upgraded Sistema's corporate rating from BB- to BB level with a stable outlook. The senior unsecured rating has also been upgraded to ÂÂ.

Alexey Buyanov, Senior Vice President and Head of Finance at Sistema, commented: "We are pleased that S&P today raised Sistema's corporate rating to BB, despite the prevailing difficult conditions in the current credit markets. This reflects, in our view, the balanced strategy with respect to the Group's loan portfolio and its liquidity level, as well as the financial stability of Sistema and its subsidiaries."