Moscow, Russia - September 30, 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 Shyam Telelink Ltd. ("Shyam Telelink"), a subsidiary of Sistema, has launched a CDMA 800 MHz mobile network under the brand name "Rainbow" in the state of Rajasthan. This marks the beginning of the expansion of Shyam Telelink's pan-Indian mobile network. The company intends to provide its services to more than 35 million subscribers by 2012, which represents approximately 7% of the Indian market.

Shyam Telelink has built and activated 833 base stations in the state of Rajasthan and the company's experts have integrated and fully optimized the network. Rainbow packages are now available in 15,500 outlets across the state with further expansion to 25,000 outlets planned by March 2009. At the time of the launch, the Shyam Telelink mobile network covers an area of 35 million potential customers in the state of Rajasthan, which is half the total population of the state. The company intends to cover a territory with a target population of 47-50 million by March 2009.

Vsevolod Rozanov, President and Chief Executive Officer of Shyam Telelink, commented: "The launch of the Shyam Telelink network in the state of Rajasthan is our first step in developing a pan-Indian mobile network. We offer high quality connections and telephone services to our subscribers both in their home state and whilst roaming. In line with our strategy, we will develop this project with the intention to gain a significant market share in the telecommunication industry in India in next 3-4 years. We will launch our Shyam Telelink network in two more Indian circles in the first quarter of 2009."

Altogether Shyam Telelink now has spectrum in 22 Indian circles, covering 28 administrative states and 7 union territories with a population of approximately 1.1 billion people.