Moscow, Russia – July 15, 2011 – JSFC Sistema (“Sistema”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that Sistema, and the Federal Forestry Agency have signed a cooperation agreement for the implementation of geographic information systems (GIS) and technologies, designed by Sistema’s subsidiaries, for the protection, conservation and reforestation, as well as the coordinated utilization of forest resources.

The cooperation agreement, which is not legally binding, defines the general intentions of both parties and the principles for cooperation.

Mikhail Shamolin, President and Chief executive officer of Sistema, commented: “The effects of devastating wildfires last year proved that it is necessary to upgrade forestry management and monitoring systems with modern technology. Sistema has a strong track record and broad technological expertise and we are keen to share it with the Federal Forestry Agency.”

Victor Maslyakov, Head of Federal Forestry Agency, added: “The Government has set important tasks for the Forestry Agency for protection, conservation and reforestation. In order to achieve these objectives, we need to make significant technological breakthroughs using modern technologies and innovations. We are delighted at the prospects of our future collaboration with a high-tech company such as Sistema. The introduction of advanced information technologies in the forestry sector is the key to effective forest management.”