LONDON, 20 April – Russia’s commodities sector, though still important, is no longer the primary driver of Russian economic growth, Evgeny Novitsky, president of JSFC Sistema, said today in a London speech. Speaking at the annual Russian Economic Forum, Mr. Novitsky said services, manufacturing and construction are increasingly the growth leaders, as domestic demand grows and even international sales of processed goods start to rise. Business and government need to encourage this trend by working together, with business concentrating on meeting market needs and investing in promising activity, and with the state ensuring an appropriate legal framework and infrastructure, and establishment of sound industrial policy, he said. Key drivers of future growth may be investments into processing of raw materials, high tech projects, construction and services, and also the export of processed goods. Mr. Novitsky cited Sistema as a “perfect example” of a business whose growth is based on services and technology rather than commodities. Mr. Novitsky pointed to Sistema’s own majority-owned MTS mobile telecoms operator with 87% annual growth respectively as evidence of the economy’s growing diversification. He observed that engineering, construction, consumer services and retailing are all enjoying growth rates above those of the fuel and iron sectors. He said the company operates on the basis of five key principles: focus on growth industries, a strategy of investing in sector leaders and disposing of underperformers, portfolio diversification, development of strategic partnerships to gain external know-how and market knowledge, and development of an effective management team and structure. *** Sistema JSFC is one of Russia’s largest diversified holding companies. In the first six months of 2003, the company reported sales of $1.57bn., with total assets exceeding $5.5bn. Founded in 1993, Sistema currently owns and actively manages a diversified portfolio of assets in the following sectors: telecommunications (MTS, MGTS, MTU-Inform, Telmos, Golden Line, Comstar and others), technology (Mikron, STROM Telecom, Sitronics), insurance (ROSNO), finance and securities (MBRD), real estate (Sistema-Hals), travel services (Intourist), retail (Detsky Mir) and others. Additional information is available at www.sistema.ru. *** For further information please contact: Press Service Investor Relations Olga Pestereva Andre Bliznyuk Tel. + 7 095 730 1705 Tel: +7 095 730 1543 pestereva@sistema.ru bliznyuk@sistema.ru