Moscow, Russia – September 15, 2010 – Sistema (the “Group”) (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in, and is a major shareholder of, companies operating in different industries, today announced its unaudited consolidated US GAAP financial results for the second quarter ended June 30, 2010.

Second quarter highlights

- Consolidated revenues up 11.5% quarter-on-quarter to US$ 6.9 billion

- Consolidated OIBDA up 14.3% quarter-on-quarter to US$ 1.9 billion, with an OIBDA margin of 27.0%

- Operating income up 21.9% quarter-on-quarter to US$ 1.1 billion, with an operating margin of 16.4%

- Consolidated net income attributable to the Group of US$ 144.0 million

- The Oil & Energy business unit contributed US$ 3.3 billion and US$ 0.7 billion to the Group’s consolidated revenues and OIBDA, respectively

Leonid Melamed, President and Chief Executive Officer of Sistema, commented: “We are pleased with the results for the second quarter of 2010 as group revenues and OIBDA displayed double digit growth versus our strong performance in the first quarter.  Solid results were posted across our entire portfolio: healthy improvement to profitability in our Telecoms business unit, continued significant growth in the Oil and Energy business unit, strengthening of margins in the Consumer business unit and sales and profitability in our High Technology business that now exceeds pre-crisis levels. This strong operating performance has provided excellent cash yield, net cash provided by operations more than tripling quarter on quarter, allowing us to deleverage at the holding company level. We will maintain our focus on optimizing our portfolio in the second half of the year, while remaining alert to opportunistic new investments.  Sistema continues to adhere to its stated goal of “5*5>25” through our investment strategy “2i plus.”   This means investment emphasis on infrastructure providing value-added services to meet the basic needs of the Russian population, and investment in internet and communications, plus partnerships with the state where we view that as advantageous.” 

Conference call information

Sistema management will host a conference call today at 9 am (New York time) / 2 pm (London time) / 3 pm (CET) / 5 pm (Moscow Time) to present and discuss the second quarter results.

The dial-in numbers for the conference call are:

UK/ International: +44 20 7190 1595

US:  +1 480 629 9772

A replay of the conference call will be available on the Company’s website www.sistema.com  for 7 days after the event.