Moscow, 15 January 2020– Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, and its portfolio company Sistema-Biotech announce signing an investment agreement with the International Medical Cluster Foundation (IMC) to build a 15,000 sqm facility at the International Medical Cluster in Skolkovo that will accomodate Sistema-Biotech’s  multidisciplinary biotechnology R&D laboratory as well as a centre for preclinical testing of advanced international R&D products and technologies. The biotech R&D lab will be one of the largest private laboratories in Russia, and will be commissioned in mid-2022.

Sistema’s biotech lab will conduct research in genetic diagnostics, predictive and personalized medicine, drug development and integration of modern technologies into clinical practice. The biotech R&D lab will focus on genetic research, production of diagnostic kits, cell-based biomedical products, biobank and production of biological products. The laboratory will also engage in training and education. The project is being developed in close cooperation with Sistema’s medical and pharmaceutical assets.

Under the investment agreement, the IMC Foundation will design and construct the new facility. Sistema-Biotech will then lease the facility for 20 years with an option to extend.

Sistema-Biotech, in turn, will develop the laboratory, invest in equipment, technical outfitting and comissioning of the R&D lab. Sistema Biotech aims to engage partners in such areas as technology and science to implement joint projects within the scope of the laboratory’s areas of focus.

Sistema Managing Partner Artem Sirazutdinov said: “The development of Russian healthcare and pharma sectors are priority investment areas for Sistema. The establishment of a biotech R&D lab at the IMC in Skolkovo that will focus on the development of personalized medicine and early diagnosis of diseases is another step in this direction. We expect that our R&D lab in Skolkovo will lead the way in biotechnological advancement in Russia in terms of personalized medicine in such fields as oncology, cardiology, reproductive medicine, psychiatry and other serious acquired and hereditary diseases, as well as the integration of modern cell- and gene-based technologies in clinical practice. We also believe this project holds great potential for synergies with our medical and pharmaceutical assets.”

General Director of IMC Foundation Ildar Khairullin commented: "The driver of the next global technological transition will lie in areas related to the development of human capital, in particular, biotechnology and medical technology. Over 40% of the world's scientific research is already concentrated in this area. As we know, innovative breakthroughs in science usually occur in the field of interdisciplinary intersections, nanotechnology, biotechnology, information and cognitive technologies, otherwise known as NBIC-convergence. Such innovations are not only the future of healthcare, but also of the economy as a whole; the economy of the future is not in raw materials, but rather in technology. The IMC project is aimed at the progressive development of medicine - we are looking to not only implement the clinical aspect at our facility, but also an innovative one, in particular, an R&D laboratory jointly with our partner Sistema. We view this project as having the potential to boost biotechnological innovation in Russia."

 ***

Sistemais a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, financial services, retail, paper and packaging, agriculture, real estate, tourism and medical services. The company was founded in 1993. Revenue in 2018 was RUB 777.4 bn; total assets equalled RUB 1.5 trn as of 31 December 2018. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.com

***

International Medical Cluster on the territory of the Skolkovo Innovation Center  is a social project of the Government of City of Moscow in the field of healthcare. The project is aimed a significantly raising the quality and efficiency of medical services in Russia.

The cluster is unique in that medical institutions from OECD countries can offer medical services, drugs and equipment on the territory of the cluster without a Russian Federation certificate if they have received all relevant approvals in their home country.

The IMC occupies 57.6 hectares at Skolkovo. As the IMC project is rolled out 10–15 medical institutions from OECD countries will open their doors, and as a result as many as 300,000 patients will receive top-tier medical care based on the latest achievements in healthcare.

For further information, please visit www.sistema.com or contact: