Moscow, Russia – May 28, 2009 – Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which manages large companies operating in different industries, today announced that the Board of Directors (the “Board”) has set the agenda for the Company’s Annual General Meeting of shareholders (“AGM”) scheduled for June 27, 2009.

Among other issues the Board recommended the AGM to consider the following:

· Approve the Company’s Annual Report;

· Approve the Company’s Russian Accounting Standards annual financial statements for 2008;

· Elect the members of the Board of Directors;

· Elect the members of the Audit Committee;

· Approve the distribution of profits and losses of the Company based on the full year 2008 results, including size, order, form and timing of dividends payment;

· Approve Sistema’s auditors.

The Board of Directors also recommended the AGM to elect 13 members of the Board as follows:

· Alexander Goncharuk

· Alexander Gorbatovsky

· Vladimir Evtushenkov

· Ron Sommer 

· Dmitry Zubov

· Vyacheslav Kopiev

· Robert Kocharyan

· Leonid Melamed

· Rajiv Mehrotra

· Evgeny Novitsky

· Stephan Newhouse

· Robert Skidelsky

· Sergey Cheremin

Vladimir Evtushenkov, Chairman of the Board of Directors at Sistema, commented: “We believe that the presence of independent directors on the Board is one of the key instruments of sound and effective corporate governance. We intend to further develop and improve our corporate governance. Therefore, we have nominated two new independent candidates to the Board, Robert Kocharyan and Rajiv Mehrotra. Furthermore, we have recommended the AGM to elect Leonid Melamed, President and Chief Executive Officer of Sistema, to the Board of Directors, in line with our established corporate practice.”

Further information with regard to the AGM and other related issues is available on Sistema’s website at www.sistema.com or by request at Sistema’s office.

Robert Kocharyan was born in 1954 in Stepanakert, Nagorno-Karabakh Autonomous Oblast. From 1998 to 2008, Mr. Kocharyan was the President of Armenia. Prior, from 1997 to 1998, he served as Prime Minister of Armenia. From 1994 to 1997, Mr. Kocharyan was President of Nagorno-Karabakh Republic. From 1992 to 1994, he served as Chairman of the State Defense Committee and Prime Minister of the Nagorno-Karabakh Republic. In 1991, he was elected a deputy of the Nagorno-Karabakh Republic's Supreme Soviet of the first convocation. In 1989 and in 1990, Mr. Kocharyan was a deputy of Armenia’s Supreme Soviet and member of the Presidium of the Supreme Soviet. Prior to that, he worked in Stepanakert’s electro-technical plant and occupied various posts in Nagorno Karabakh’s youth communist and party organisations. In 1982, Robert Kocharyan graduated from Yerevan Polytechnic Institute.

Rajiv Mehrotra was born in 1954. Mr. Mehrota is a founder of Shyam Group of India, where he serves as Chairman and Managing Director. He was also instrumental in establishing Shyam Telecom, one of the leading providers of mobile communications solutions. Mr. Mehrota is also one of the founders of Shyam Telelink (now Sistema Shyam Teleservices), one of the first CDMA 2000 mobile network operators in India. He actively cooperates with Association of Basic Telecom Operators, and is a member of the Federation of Indian Chambers of Commerce & Industry (FICCI) Telecom Committee.