Moscow, Russia � June 10, 2015 � Sistema JSFC (�Sistema� or the �Company�, together with its subsidiaries, �the Group�) (LSE: SSA), a publicly-traded diversified holding company operating primarily in Russia and the CIS, today announces its unaudited consolidated financial results for the first quarter ended March 31, 2015.

As announced in April 2015, Sistema will be reporting its quarterly and annual consolidated financial results in accordance with International Financial Reporting Standards (IFRS)[1]from the first quarter of 2015. The Group has also changed the currency it presents its financial statements in from the US dollar to the Russian rouble (�RUB�). Comparative information for the previous quarters has been restated to comply with IFRS. Sistema has previously prepared its consolidated financial statements in accordance with US GAAP.

FIRST QUARTER FINANCIAL HIGHLIGHTS

� Consolidated revenues grew by 17.1% YoY to RUB 167.7 billion

� Adjusted OIBDA up 6.5% YoY to RUB 44.6 billion with an adjusted OIBDA margin of 26.6%

� Net income attributable to the Group tripled YoY to RUB 32.1 billion

� Net debt at the Corporate Holding level amounted to RUB 38.8 billion as at March 31, 2015

� As at March 31, 2015 cash position at the Corporate Holding level amounted to RUB 29.7 billion, including RUB 8.4 billion of liquid deposits received from Ural-Invest LLC in the first quarter of 2015

� In March 2015 and after the reporting period in April 2015, Sistema signed agreements with Ural-Invest LLC, in accordance with which it is entitled to receive approximately RUB 55.3 billion of cash assets and financial instruments (net of social investments).

KEY CORPORATE HIGHLIGHTS IN THE FIRST QUARTER OF 2015 AND AFTER THE REPORTING PERIOD

� Sistema�s Board of Directors (the �Board�) recommended the Annual General Meeting of Shareholders (�AGM�) to set the total dividend payment for Sistema�s shares at RUB 4.54 billion, representing a payment of RUB 0.47 per ordinary share or RUB 9.40 per GDR.

� Sistema completed the placement of RUB 10 billion Series BO-01 unconvertible interest-bearing bonds with a par value of RUB 1,000 at the rate of 17% per annum. Coupon payments will be made on a semi-annual basis. The bonds mature in 15 years. In addition, bondholders have the right to redeem their bonds at the point of expiration, 18 months from the date the bonds were placed.

� In March 2015, Fitch Ratings affirmed Sistema's Long-Term Issuer Default Rating (IDR) at �BB-� and removed its rating from Rating Watch Negative (RWN). The Outlook on the IDR is stable. Fitch also affirmed Sistema�s National Long-Term Rating at �A+ (rus)�.

�  In April 2015, Moody's Investors Service changed its outlook to positive from negative and affirmed its �B1� corporate family rating.

�  After the reporting period, Sistema Finance Investments OJSC, Sistema�s wholly owned subsidiary, acquired 27,800,000 of Sistema�s ordinary shares for approximately RUB 456 million. The shares were purchased for general corporate purposes, including the employee incentive programme. As a result of this transaction, the number of Sistema shares held by Sistema Group amounts to approximately 2.5% of Sistema�s total issued capital.  

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

�We are pleased to start a new year for our business with a strong set of first quarter results matched with delivery on our strategic objectives. We are reporting a double-digit year-on-year increase in revenues driven by both organic expansion and acquisitions. Almost all of Sistema�s subsidiaries contributed to the top line growth, which, together with the consolidation of Segezha Group, brought a 17.1% increase in the Group�s sales. Our diversification has grown year to date � MTS�s share in total revenues accounted for 60%, while the share of other assets expanded from 32% to 40% year to date.

Our optimisation measures at NVision, effective business management at Detsky mir and our new, promising pulp and paper assets resulted in adjusted OIBDA growth of 6.5%. Moreover, the OIBDA margin of Segezha Group in the first quarter of 2015 amounted to 27%.

A key milestone of the past few months was the signing of settlement agreements with Ural-Invest, in accordance with which Sistema is entitled to receive more than RUB 60 billion, represented by cash, financial instruments and deposits. A major part of deposits will mature in 2016 and will secure strong liquidity at the Holding level.

We are optimistic about our prospects going forward. We have a stable and growing dividend flow from current investments, significantly lower corporate costs and a vigorous assessment process for each opportunity based on its financial merits. With these fundamentals in place, we believe Sistema is well positioned to capitalise on new investment opportunities.�

Conference call information

Sistema�s management will host an analyst conference call today at 10.00 am (EST)/ 3.00 pm (London time) / 4.00 pm (CET)/ 5.00 pm (Moscow time) to present and discuss the first quarter 2015 results.

The dial-in numbers for the conference call are:

UK/ International: +44 (0)20 3427 1905
US: +1 212 444 0896
Conference ID: 9106989

Alternatively, you can quote the conference call title: �Sistema First Quarter 2015 Financial Results�.

A replay of the conference call will be available on the Company�s website www.sistema.com for 7 days after the event.

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

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