~Vsevolod Rozanov, President & CEO, MTS India Set To Move To Sistema JSFC Headquarters in Moscow, Dmitry Shukov To Take Over~  

Gurgaon, India, 24^th April 2013 - Sistema Shyam TeleServices Ltd. (SSTL), which operates its telecom services under the MTS brand in India, today announced transition in its leadership with Dmitry Shukov expected to take over from Vsevolod Rozanov, the current President and CEO of SSTL. The leadership change would come into effect after completion of all the relevant corporate procedures. The transition in leadership is expected to be effective from 1^st June 2013.

At the helm of SSTL since October 2008, Vsevolod Rozanov is being elevated to a senior position within Sistema JSFC. The details of Vsevolod's new role will be announced by Sistema JSFC after completion of all due corporate procedures. Vsevolod is credited for setting up SSTL's green field operations in India, implementing data centric voice enabled strategy, developing MTS India brand, and successfully navigating a series of challenging legal and regulatory issues.

Commenting on the leadership transition,Vladimir Evtushenkov, Chairman of the Board of Sistema JSFC said,"Vsevolod's leadership and strategic direction provided to SSTL was immensely valuable and positioned the company amongst the top 3 data operators in India. We thank him for his contribution and look forward to working with him in Sistema."

Dmitry Shukov, the incoming leader of SSTL , has had an outstanding career. Dmitry, is known for his hands-on business experience, having worked as head of sales in Tele2, Russia's leading mobile operator. Dmitry, has 20 years of work experience and started his career as an engineer. He is a MTS veteran and was previously the CEO of MTS Turkmenistan and MTS Uzbekistan

Mikhail Shamolin, President of Sistema JSFC, adds,"Dmitry has a wealth of operational experience, business acumen, and inspirational leadership needed to spearhead SSTL's next phase of growth.  We welcome his appointment and look forward to his contribution in taking the company to OIBDA-positive stage."

With many of the uncertainties relating to SSTL's operations having been resolved, the key focus area for Dmitry will be to takethe Company to the next level.  SSTL is expected to roll out a range of strategic initiatives in line with its data-centric voice-enabled strategy. The game plan includes further strengthening the brand's connection with its stakeholders, including customers, retailers, employees etc. The Company is also looking at speeding up deliveries from its innovation pipeline so that it stays true to its brand mantra of being "a Step Ahead". The Company recently also made its long term intention known in the market i.e. to play a key role in the LTE landscape in India.