Moscow, July 16, 2003. JSFC Sistema announces new appointments at OAO CSC. On June 15, the Board of Directors of OAO CSC approved a new management structure for the Concern, with a General Designer, also called Science Director, added to the roster of CSC top positions. In a major reshuffle, Alexander Goncharuk, previously head of ZAO Sistema Telecom, was made General Director of the Concern, and the newly created General Designer (Science Director) position was filled by Gennady Krasnikov, formerly General Director of OAO CSC.

Meeting on July 16, the Board of Directors of ZAO Sistema Telecom voted to terminate the powers of Alexander Goncharuk before the end of his term in office following his appointment to another position.

These personnel changes were suggested by JSFC Sistema’s Board of Directors on July 12, 2003, as a way to improve the efficiency of the Corporation’s electronics manufacturers, a business sector that has lately been receiving priority attention from JSFC Sistema. As already reported, Vladimir Yevtushenkov, Chairman of JSFC Sistema’s Board of Directors, emphasized, with reference to the Board’s decision, “The positions the Science Center Concern has captured in the industry in the Russian and foreign markets enable it to proceed to implementing a new and proactive strategy. In actual fact, this means creating the electronics industry’s largest research and development complex built on modern management principles in the science innovation area.”

OAO CSC (Science Center Concern) holds in its hands all JSFC Sistema electronics assets . The Concern’s enterprises design, develop and manufacture microelectronics, industrial electronics, telecommunications equipment, and consumer electronics. The Concern comprises OAO NIIME & Mikron Plant, the biggest producer of microcircuits in Russia; VZPP-Mikron (Voronezh), a large microelectronics manufacturer; NIITM, a leading developer of microelectronics processing equipment in Russia; and enterprises manufacturing processing equipment and industrial and consumer electronics products, the three plants – Elaks, Elion and Kvant. Telecommunications equipment and software for the Concern are developed and manufactured by the STROM Telecom company, the Czech Republic, which supplies its products to major telecommunications companies in Europe and Asia. The Board of Trustees of OAO CSC is headed up by Nobel laureate Zhores Alferov, Vice President of the Russian Academy of Sciences. Yevgeni Novitsky, who is President of JSFC Sistema, is Chairman of the Board of Directors of OAO CSC.

Z?? Sistema Telecom was established on July 1, 1998, as a JSFC Sistema subsidiary to manage telecommunications assets. The group of Sistema Telecom companies today is the largest private business active in the Russian telecommunications market. It has control over 50 communications operators in all major segments of the telecommunications market, such as fixed and mobile telephony, the Internet and data transfer, traffic transit, tracking, paging, and so on.

Goncharuk, Alexander Yurievich, born in 1956. Had a stint of Navy service, on a missile-carrying cruiser of the nation’s Northern Fleet. In 1973, graduated with honors from the Higher Naval Engineering School in Sevastopol, the Crimea. In 1987, graduated with honors from the Grechko Naval Academy, with a degree from the electric power systems chair, and served successively with the Main Shipbuilding Directorate of the USSR Navy and, as a senior officer, at the Navy Headquarters. Between 1994 and 1996, he was general director and member of the Board of Directors of ASO Leader. In 1996, made chief of the Telecommunications Department and Vice President of JSFC Sistema, and also a member of MGTS’ Board of Directors. In 1998, was put at the head of ZAO Sistema Telecom. In 2000, elected member of JSFC Sistema’s Board of Directors. He is also Chairman of the Board of Directors of the Mobile TeleSystems (MTS) company.

Krasnikov, Gennady Yakovlevich, born in 1958. Upon graduation from the Moscow Electronic Equipment Institute in 1981, got a job in Zelenograd. Working for the Molecular Electronics Science Research Institute and the Mikron plant, rose from engineer to deputy general director. In 1991, made General Director of NIIME and Mikron Plant (today OAO NIIME & Mikron). In 1999, elected General Director elected General Director of the Science Center Concern (OAO CSC). He is one of Russia’s leading scholars specializing in developing microcircuits that are the key elements of modern computers and electronics. He is a corresponding member of the Russian Academy of Sciences, a professor, and a doctor of engineering, broadly acclaimed in Russia and elsewhere for his research studies, discoveries, inventions and developments. A member of the Council of Experts of the Higher Certification Board and member of the ruling presidium of the Science and Technology Board of the Russian Control Systems Agency.

For more details, contact:

Andrei Bliznyuk Investor Relations Department Tel: +7 095 730 1543 bliznyuk@sistema.ru

Olga Pestereva Press Office Tel + 7 095 730 1705 pestereva@sistema.ru