Moscow, Russia – June 27, 2016 – Sistema JSFC (“Sistema” or “the Company”) (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company operating primarily in Russia and the CIS, announces that it has signed an agreement with the Russian Federation, represented by the Federal Agency for State Property Management, whereby the Company will acquire 17.14% of the shares of telecommunications operator Sistema Shyam TeleServices Limited (“SSTL”), a subsidiary of Sistema in India.

Under the agreement, payment for the shares will be made to the Russian federal budget in instalments over a period of five years as follows: 30% in 2016, 25% in 2017, and 15% in each of 2018, 2019 and 2020.

The Russian Federation acquired 17.14% of SSTL shares in March 2011, and simultaneously concluded an option agreement with Sistema to sell these shares back to the Company after a period of five years for the higher of US$ 777 million or the market value determined by an independent valuator.

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