Moscow, Russia - July 19, 2007 - Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, today announced that Fitch Ratings has upgraded Sistema' long-term foreign and local currency Issuer Default Ratings ("IDL") to ‘BB-‘ from ‘B+' with a stable outlook.

Fitch also upgraded the Eurobonds and Medium-Term Notes programme issued by Sistema Capital S.A. and Sistema Finance S.A. and both guaranteed by Sistema, to ‘BB-‘ from ‘B+'.

Alexey Buyanov, First Vice President and Chief Financial Officer of Sistema, commented: "Fitch upgrade reflects Sistema's strong financial position and sustainability of operations in our key subsidiaries. We remain focused on delivering on our promises given to the investors at the Capital Markets Day".