Moscow, Russia – 26 January 2017 – Sistema PJSFC (“Sistema” or “the Corporation”) (LSE: SSA; MOEX: AFKS), a Russian public diversified holding company, notes that its subsidiary, PJSC Detsky Mir (“the Company” and, together with its subsidiaries, “Detsky Mir”) has announced the price range for its initial public offering (the “Offering”) of ordinary shares (the “Shares”). Sistema plans to participate in the Offering as a selling shareholder, and retain a controlling stake in the Company following completion of the Offering.

• The price range for the Offering has been set at between RUB 85 and RUB 105 per Share.
• The Selling Shareholders are expected to sell a total of up to 247.9 million Shares, including the over-allotment option, which based on the announced price range would represent an Offering size of between RUB 21.1 billion and RUB 26.0 billion, valuing the Company at between RUB 62.8 billion and RUB 77.6 billion.
• The full text of Detsky Mir's announcement with further details on the Offering is available at corp.detmir.ru/en/

Sistema President Mikhail Shamolin said: “We believe that the price range reflects Detsky Mir’s strong business model, solid track record and significant potential for further profitable growth. Detsky Mir’s IPO represents the first opportunity for a broad pool of investors to gain exposure to a uniquely attractive asset that is growing faster and delivering higher returns than other companies in the Russian retail universe. We continue to believe Detsky Mir has significant growth opportunities, which is a major reason why Sistema will retain a controlling stake in the Company following completion of the Offering, while offering new investors the opportunity to share in the potential upside.”

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