Moscow, Russia - 26 June, 2008 - Sistema (the "Group") (LSE: SSA), the largest diversified public corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced its unaudited consolidated US GAAP financial results for the three months ended March 31, 2008.

FIRST QUARTER HIGHLIGHTS

• Consolidated revenues up by 39.7% year on year to US$ 3.8 billion
• OIBDA up 31.8% year on year to US$ 1.4 billion and OIBDA margin of 38.2%
• Operating income up 21.0% year on year to US$ 881.3 million and operating margin of 23.3%
• Income from continuing operations increased by 79.7% year on year to US$ 400.8 million
• Total assets up by 40.4% year on year to US$ 30.3 billion

Leonid Melamed, President and Chief Executive Officer, commented: "Sistema delivered solid financial results in the first quarter of 2008 which demonstrate strong fundamentals of the Group and its underlying businesses. We intend to further strengthen Sistema's position in the Russian and international markets as a preeminent consumer services corporation. Our goal, which is branded "5 X 5 > 25", is to achieve Return on Invested Capital for the Sistema Group of above 25% within the 5-year period and maintain it at this level beyond. Our tools for achieving this goal are:

• Continued increase in the value of all assets of the Group justified by:

• Delivering robust and transparent financial results
• Demonstrating excellent management of assets, including through partnerships with leading companies in respective sectors
• Diversifying risks and attracting capital, including through established partnerships with market leaders

• Maintaining a strict fiscal discipline based on our TSR and ROIC-driven philosophy, as well as transparent KPIs for all public and non-public companies
• Simplifying the Group's capital structure
• Demonstrating leadership in the execution of our portfolio strategy and management of daughter companies
• Becoming best in class in investor relations and corporate governance areas, and continuing to work with our minority shareholders in an open and transparent manner.

We are confident about our future and committed to increasing the shareholders' value."

Conference call information

Sistema management will host a conference call today at 9 am (New York time) / 2 pm (London time) / 3 pm (CET) / 5 pm (Moscow Time) to present and discuss the fourth quarter results.

The dial-in numbers for the conference call are:

UK/International: +44 20 7190 1232  

US: +1 480 629 1990                        

A replay will then be available for 7 days after the conference call. To access the replay, please dial:

UK/International: +44 20 7154 2833

US: +1 303 590 3030                        

PIN number: 3889255#