Moscow, Russia – November 16, 2010 – Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in, and is a major shareholder of, companies operating in different industries, today announced that it has received an indicative offer from MTS to sell a 100% stake in LLC Sistema Telecommunications, Informatics and Communications (“Sistema Telecom”) for RUB 13.389 billion (approximately USD 438 million), comprising RUB 11.588 billion (approximately USD 379 million) of the share capital of the company and RUB 1.801 billion (approximately USD 59 million) of net debt.

The proposed transaction will include Sistema Telecom’s key assets, specifically rights to a series of trademarks, including the distinctive ‘egg’ trademarks of MTS, Comstar-UTS and MGTS, a 45% stake in TS-Retail, in which MTS presently holds a 55% interest, and promissory notes previously issued by MTS in the amount of RUB 2 billion.

The completion of the transaction is contingent upon execution of binding documentation, as well as receipt of necessary corporate approvals and approval by the Federal Antimonopoly Service (FAS). The sale is expected to be completed by the end of the year, provided that the conditions described above are satisfied.