Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, wishes to clarify the status of certain information which has become public in connection with a proposed offering of  Ruble-denominated bonds by the Company in Russia. The bond issue prospectus for the total amount of Ruble 6 bln was registered by Russia’s Federal Financial Markets Service on 21^st of February 2008.

Offering materials relating to the bond offering compiled by the banks advising on that offering contain financial projections regarding Sistema and its quoted subsidiaries - Mobile TeleSystems, Comstar, Sitronics and Sistema Hals, drawn from primarily published analysts’ reports and other publicly available sources. The inclusion of projections is common in relation to such offerings in Russia.

Sistema does not intend to revise or update these projections in the future and is satisfied that the offering materials do not contain information which would be likely to have a significant effect on the price of Sistema’s equity securities.

Important note: Forward looking statements

The projections in the offering materials constitute forward–looking statements relating to future events or financial performance, including projected revenue and net income.

These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward looking statements. Factors that might cause such a difference include the companies’  inability to compete successfully in the competitive and rapidly changing marketplace in which they operate, their ability to implement their strategic objectives and adverse general economic conditions in Russia and internationally.

Although Sistema believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements.