Moscow, Russia - February 27, 2006 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that the Board of Directors meeting held on February 25, 2006 approved the previously indicated changes to the Company's Board and senior management. The changes include the appointment of Vladimir Evtushenkov as Chairman of the Board of Directors, and the appointment of Alexander Goncharuk as President.

Evgeny Novitsky, the former Chairman of the Board of Directors, will continue to serve as a member of Sistema's Board of Directors.

Mr. Evtushenkov is Sistema's founder and largest shareholder, and served as Chairman of the Company's Board of Directors from January 1994 until January 2005. Mr. Evtushenkov was appointed as President of Sistema prior to the Company's initial public offering and listing on the London Stock Exchange in February 2005.

Mr. Goncharuk was President of Sistema Telecom from 1998 until 2003, and was subsequently appointed as General Director of Sistema's Technology business - Concern Scientific Center (recently renamed as Concern Sitronics).  Mr. Goncharuk has served as a member of Sistema's Board of Directors since 1995 and is a shareholder in the Company.

Evgeny Utkin, previously CEO of Kvazar Micro (a subsidiary of Concern Sitronics), will take over from Mr. Goncharuk as Chief Executive of Concern Sitronics, subject to approval by Concern Sitronics' Board of Directors.