Sistema Board of Directors’ allocated shareholdings

Moscow, Russia – July 22, 2011 – Sistema (the “Company”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announced changes and new allocations to the Sistema Board of Directors’ shareholdings in the Company.

In line with the remuneration structure for the members of Sistema Board of Directors, shareholdings in the Company of six members have been increased by 83,653 shares, two Directors have been granted 87,500 shares each and one Director has received 87,500 shares for the first time. Each allocation represents approximately 0.0009% of 9,650,000,000 total shares issued. Based on the closing GDR price on the London Stock Exchange as of July 21, 2011 of US$ 24.85 per GDR, this equates to an indicative value of approximately US$ 950,000.

• Chairman of the Board Vladimir Evtushenkov’s shareholding in the Company has increased from 64.1821% to 64.1830%;
• Independent Director Evgeny Novitsky’s shareholding in the Company has increased from 1.9938% to 1.9947%;
• Director Alexander Goncharuk’s shareholding in the Company has increased from 1.8901% to 1.8910%;
• Deputy Chairman of the Board Dmitry Zubov’s shareholding in the Company has increased from 0.8798% to 0.8807%;
• Director Vyacheslav Kopiev’s shareholding in the Company has increased from 0.0541% to 0.0550%;
• Director Dr. Ron Sommer’s shareholding in the Company has increased from 0.0042% to 0.0051%;
• Deputy Chairman of the Board Leonid Melamed’s shareholding in the Company has increased from 0.0009% to 0.0018%;
• Independent Director Roger Munnings, who previously did not hold any shares, was awarded 0.0009% of the outstanding share capital;
• Independent Director Robert Kocharyan’s shareholding in the Company has increased from 0.0009% to 0.0019%.