Moscow, Russia – September 14, 2011 – Sistema JSFC (“Sistema” or the “Group”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces its unaudited consolidated US GAAP financial results for the second quarter ended June 30, 2011.

Second quarter highlights

·  Revenues up 29.5% YoY to US$ 9.0 billion.

·  OIBDA up 18.7% YoY to US$ 2.2 billion, with an OIBDA margin of 24.8%.

·  Operating income up 17.7% YoY to US$ 1.3 billion, with an operating margin of 14.9%.

·  Net income attributable to Sistema increased by 131.2% YoY to US$ 332.0 million from US$ 143.6 million in the second quarter of 2010.

·  Net debt at the Corporate Holding level reduced by 40.8% YoY to US$ 1,390.5 million from US$ 2,349.5 million.

Key corporate highlights for the second quarter

·  Approved a new management and organisational structure with new business units: Core Assets and Developing Assets.

·  Reorganised OJSC Sistema-Invest by merging it into CJSC Bashkir Integrated Energy Systems, CJSC UNKH-EnergoInvest, CJSC UNPZ-EnergoInvest and CJSC Novoil-EnergoInvest, which were previously owned by the Bashkir Oil and Energy group of companies.

·  The AGM approved an annual dividend of RUB 0.26 per ordinary share, or approximately US$ 0.18 per Global Depositary Receipt (“GDR”), for the twelve months ended December 31, 2010, to be paid to holders of Sistema shares as at the record date of May 18, 2011. The dividend payment amounts to over RUB 2.5 billion or approximately US$ 89.3 million[1].

·  The Board of Directors was reduced to 12 members while the number of independent directors expanded to 5 members. Elected three new members to the Board of Directors - Serge Tchuruk, Mikhail Shamolin and David Yakobashvili.

Mikhail Shamolin, President and Chief Executive Officer of Sistema, commented:

“We are pleased to announce another strong set of results driven by excellent performance of our Core businesses and improving financials in the Developing Assets.

Our second quarter numbers reflect Bashneft’s significant increase in revenues and OIBDA as a result of solid downstream operations, rising upstream production and higher oil prices, while at MTS strong operational focus and lower marketing spend has resulted in recovering OIBDA margins.

In the reporting period we also returned to growth in the Developing Assets Business Unit. Most of these businesses continue to require careful management and a strict focus on operational efficiency and we hope the new management teams we have been actively assembling will help us achieve that in the second half of the year.

Going forward we remain focused on our stated objectives of delivering further value from our energy investments and seeking new opportunities to diversify our portfolio. In these volatile markets we believe we are well placed to leverage our local knowledge and exceptionally strong financial position to seize on opportunities if they arise”.

[1] Based on the Russian Central Bank exchange rate as at June 25, 2011