Moscow, Russia – October 4, 2010 – Sistema JSFC (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 announces the final completion of the transactions described in the Memorandum of Understanding signed between OJSC Comstar-UTS, Sistema JSFC and OJSC Svyazinvest on November 23, 2009.

The following transactions have been completed:

- OJSC Svyazinvest’s transfer of 28% of ordinary shares in OJSC MGTS (23.3% of the share capital of OJSC MGTS) to CJSC Sistema-Inventure, a subsidiary of Sistema JSFC, in exchange for CJSC Sistema-Inventure’s transfer of 50% of ordinary shares in CJSC Sky Link (which combined with the indirect ownership effectively totals 100% of CJSC Sky Link’s share capital);

- JSFC Sistema’s sale of CJSC Sky Link’s shareholder debt to subsidiaries of OJSC Svyazinvest for RUB 8.1 billion.

These transactions are the last of the inter-linked transactions described in the Memorandum of Understanding (including the transfer of 25% + 1 share in Svyazinvest to OJSC Rostelecom by OJSC Comstar-UTS and its subsidiary MGTS Finance S.A.), which have now all been completed.