Moscow, Russia – July 31, 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 changes to the shareholdings in the Company of the members of its Board of Directors.

In line with the approved policy for the remuneration and reimbursement of Sistema Board Directors, each member’s shareholding in the Company has been increased and now stands as follows:

· Vladimir Evtushenkov, Chairman of the Board, has been awarded 164,773 shares and his shareholding in the Company has increased from 62.1284% to 62.1301%

· Evgeny Novitsky, Board Director, has been awarded 164,773 shares and his shareholding in the Company has increased from 1.9912% to 1.9929%

· Alexander Goncharuk, Deputy Chairman of the Board, has been awarded 164,773 shares and his shareholding in the Company has increased from 1.8874% to 1.8891%

· Alexander Gorbatovsky, Independent Board Director, has been awarded 164,773 shares and his shareholding in the Company has increased from 1.7846% to 1.7863%

· Dmitry Zubov, Deputy Chairman of the Board, has been awarded 164,773 shares and his shareholding in the Company has increased from 0.8771% to 0.8788%

· Vyacheslav Kopiev, Deputy Chairman of the Board, has been awarded 164,773 shares and his shareholding in the Company has increased from 0.0514% to 0.0531%

· Dr. Ron Sommer, Board Director, has been awarded 172,348 shares and his shareholding in the Company has increased from 0.0015% to 0.0033%

· Steven Newhouse, Independent Board Director, has been awarded 172,348 shares and his shareholding in the Company has increased from 0.0015% to 0.0033%

· Deputy Chairman of the Board Sergey Cheremin, and Independent Board Director Robert Skidelsky, both of whom did not previously hold any shares in the Company, have been awarded 164,773 and 172,348 shares, respectively, each representing 0.0017% of the total number of outstanding shares.

Based on the closing price on the London Stock Exchange on July 30, 2009 of US$ 14.50 per GDR (each GDR representing 20 ordinary shares), the total value of the share awards is US$ 1,211,080.

The shares that have been awarded are existing shares that have been held in treasury accounts by Sistema for the purpose of such awards. There is therefore no change in the total outstanding share capital following these awards.