Moscow, Russia – June 27, 2011 – Sistema (the “Company”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that all of the resolutions proposed to the Annual General Meeting of its shareholders (“AGM”), held on June 25, 2011,were approved.

The AGM approved the Company’s Annual Report and annual financial statements for 2010, including the profit and loss statement. The AGM also approved an annual dividend of RUB 0.26 per ordinary share, or approximately US$ 0.18[1] per Global Depositary Receipt (“GDR”), for the twelve months ended December 31, 2010, to be paid to holders of Sistema shares as at the record date of May 18, 2011. The dividend payment amounts to over RUB 2.5 billion or approximately US$ 89.3 million.

The AGM approved the election of three new members to the Board of Directors, Serge Tchuruk, Mikhail Shamolin and David Yakobashvili. The following members were reelected to the Board of Directors:

-  Vladimir Evtushenkov

-  Alexander Goncharuk

-  Ron Sommer

-  Dmitry Zubov  

-  Vyacheslav Kopiev

-  Robert Kocharyan

-  Roger Munnings

-  Leonid Melamed

-  Evgeny Novitsky

CJSC BDO was appointed as Sistema’s Russian Accounting Standards auditor for 2011, and Deloitte & Touche CIS was appointed as Sistema’s US GAAP auditor for 2011. The AGM also elected the Audit Commission. 

At the statutory Board meeting following the AGM, the Board of Directors appointed Vladimir Evtushenkov as Chairman. The Board also approved the Company’s anti-corruption policy and changes to the Group’s Ethics Code.

[1] Based on the Russian Central Bank exchange rate as at June 25, 2011